Be aware of licensing
Property can be like a game of snakes and ladders. When you’re new to the lettings business hopefully you will climb a few ladders, but you can be particularly vulnerable to slithering down the occasional snake. Here are some of our top tips for avoiding the pitfalls.
Be careful where and what type of property you buy as you might require a license. For example, all three-storey properties with five or more people living in two or more households are known as House of Multiple Occupation (HMOs) and require a mandatory license. Also, some local boroughs and councils have introduced additional or selective licensing where some or all privately rented properties must be licensed, so check before you buy and refurbish as you may be required to adhere to certain criteria and it could increase costs. If the local borough has made an Article 4 planning direction you may not be allowed to let to unrelated people and could be restricted to family lets only. For details visit the HMO and Licensing section of the Online Library.