Previously, only NLA members could access these best practice agreements. But in a key move, the NLA is now offering its approved online documents, including tenancy agreements, referencing letters and section notices.
The NLA has also published advice and guidance for first time landlords to ensure they are aware of their obligations before entering the buy to let market which is becoming increasingly popular due to an increase in demand for rental property and more accessible funding.
‘Letting property is a big responsibility. Landlords are dealing with people’s homes, a whole raft of housing legislation and day to day maintenance. It is essential that they know what they are doing before they dive in and that they comply with the law and best practice once they do,’ said David Salusbury, NLA chairman.
‘Offering landlords in the UK access to best practice tenancy agreements and other necessary forms is a great way for a landlord to begin to run their businesses properly, but further expert advice and guidance is often needed, which is why we hope our top tips will help,’ he added.
Additionally, the NLA has launched a number of new membership categories tailored with the needs of landlords in mind.
NLA representative, Richard Blanco, says that landlords should choose their target market carefully. ‘Before buying a property, speak to local landlords and letting agents about the rental demand in the area. Then, when it comes to buying, start with a property in an area you know well and can access easily from home,’ he suggests.
He also says that it is important to consider return on investment, capital appreciation and rental yield. ‘In order to gain the best capital appreciation you need to buy the property at a good price and in a state in which you can add value. And you’ll need to set a competitive rent that offers a positive rental yield.’
There are now over 50 Acts of Parliament and more than 70 sets of regulations governing the private rented sector. Even experienced landlords come across new challenges. For advice and guidance, becoming a member of a landlords association such as the NLA, is essential.
He also points out that landlords rely on their team of maintenance and business contacts, often at short notice. ‘To find reliable maintenance contacts, ask local landlords and letting agents for their recommendations. For reliable business contacts such as mortgage advisers and solicitors, visit NLA Services and NLA Recognised Suppliers. There are discounts for NLA Members,’ he adds.
Accreditation offers landlords the opportunity to develop the knowledge and skills required to be successful. NLA Accreditation requires landlords to commit to continued professional development. ‘This commitment to professional standards offers landlords a stamp of approval which helps tenants identify reliable landlords,’ says Blanco.
‘Carry out background checks to confirm potential tenants are in a position to meet their rental commitment. NLA Tenant Check checks potential tenants against a range of criteria. It’s important to get the right tenant for the property.
‘Ensure both parties sign a proper tenancy agreement, usually an Assured Shorthold Tenancy (AST) agreement. This will outline the length of the tenancy, amount of rent and when it is to be paid and will provide legal protection for both parties.
Landlords must also issue a detailed infantry which is signed and dated by both parties. This could help if there is a dispute at the end of the tenancy. And landlords should also take a deposit. By law, all deposits must be protected in a government approved scheme such as mydeposits,’ he adds.
He also believes that meeting tenants in person is essential to establishing a positive relationship form the start. ‘It’s important to establish a friendly yet business like rapport. In addition, providing good customer service is vital; always ensure repairs are carried out promptly,’ he says.
Finally the aim is to avoid voids. ‘Long term voids will consume spare cash and may even cause a business to fail. Offering tenants six month or annual contracts allows landlords to plan ahead for when a tenant might move out. And discussing future plans with tenants ensures marketing and maintenance can be planned in advance of a void,’ he adds.
