5 Common Myths About Being a Landlord – Debunked!

Becoming a landlord can be a fantastic investment opportunity, but it's often misunderstood. There’s no shortage of myths circulating about what it means to own and manage rental properties - from misconceptions about easy money to fears about losing control of your property! These myths can confuse potential landlords and discourage them from making informed decisions. So, at Your Home Managed, we’re here to set the record straight! In this post, we’ll debunk five common myths and share some helpful tips for making your landlord experience a success.

Myth 1: Landlords Make Easy Money

Debunked: While being a landlord can be profitable, it’s far from a “get rich quick” scheme.

Owning property to rent in Stockwell is a business. It requires careful planning, ongoing management, and a willingness to adapt. Yes, rental income can generate steady cash flow, but expenses like mortgage payments, property maintenance, insurance, and legal compliance can quickly add up. Unexpected repairs, void periods (when the property is vacant), and changes in tax regulations can also impact profitability.

Top Tip: Build a contingency fund for emergencies and keep an eye on local market trends to set competitive yet profitable rental rates. Partnering with a property management company in Stockwell can also help reduce stress and maximise your returns by ensuring the property is well-maintained and always compliant with regulations.

Myth 2: It’s Better to Manage the Property Yourself

Debunked: While self-management works for some landlords, it’s not always the best option. Read 7 signs it’s time to hire a property management company here. 

At first glance, managing your property to let in Stockwell might seem like a good way to save money. However, it can be incredibly time-consuming and demanding. You’ll need to market the property, vet tenants, collect rent, and respond to maintenance issues at all hours. You’ll also be responsible for keeping up with ever-changing laws and regulations. One mistake could cost you thousands of pounds in fines or legal fees.

Using a professional letting agent in Stockwell offers a hassle-free solution. They’ll handle everything from finding reliable tenants to ensuring your property meets all safety standards, giving you more time to focus on other priorities.

Top Tip: If you choose to self-manage, consider joining a landlord association to stay informed about legal updates and access support when needed.

Myth 3: You Can’t Evict a Tenant Anymore

Debunked: Eviction is still possible under the right circumstances, despite recent changes to the Renters Reform Bill.

The Renters Reform Bill has caused concern among landlords, particularly with its plan to abolish Section 21 "no-fault" evictions. Many landlords fear they’ll lose the ability to regain possession of their properties. However, this isn’t entirely true. While Section 21 notices may be replaced, landlords can still evict tenants for legitimate reasons, such as non-payment of rent, breach of tenancy terms, or if they need to move back into the property themselves.

The key is to follow the correct legal process. Seeking guidance from a property management company in Stockwell or a legal expert will ensure you act within the law.

Top Tip: Keep detailed records of rent payments and communication with tenants. This documentation will be invaluable if you ever need to pursue legal action.

Myth 4: The Bigger the Portfolio, the More Profitable You’ll Be

Debunked: Quality matters more than quantity when it comes to property investments.

It’s easy to assume that having a large portfolio will automatically generate more profit, but that’s not always the case. A few well-maintained, high-demand properties can often outperform a larger portfolio of poorly located or neglected ones. Property management also becomes more complex as your portfolio grows, with increased risk of tenant disputes, maintenance issues, and void periods.

Top Tip: Focus on acquiring properties in desirable locations like Stockwell, where demand is high, and invest in regular maintenance to protect your long-term returns. Partnering with a reliable property management company in Stockwell can help you scale effectively while minimising risk.

Myth 5: It’s Hard to Find Reliable Tenants

Debunked: With the right approach, you can attract excellent tenants.

One of the biggest worries for landlords is ending up with troublesome tenants who don’t pay rent or damage the property. While bad experiences do happen, they’re far less common if you take the right steps from the start. Proper tenant screening is essential - checking references, employment status, and credit history will help you avoid issues later.

Working with an experienced letting agent in Stockwell simplifies the process. Letting agents have access to screening tools and databases that private landlords don’t, ensuring you get reliable tenants.

Top Tip: Offer incentives like flexible tenancy terms or minor upgrades (such as new appliances) to attract high-quality tenants who are likely to stay longer.

What Next?

If you’re thinking of letting out your property in Stockwell, get in touch with Your Home Managed today. Call us on 0208 125 7780 or email info@yourhomemanaged.com for expert advice and stress-free property management.

In the meantime, we've answered some of your common questions about being a landlord.

FAQs

What are my legal responsibilities as a landlord?

You must provide a safe and habitable property. This includes ensuring it meets electrical, gas, and fire safety standards, and registering the tenant’s deposit with an approved scheme.

Can I still evict a tenant under the Renters Reform Bill?

Yes, but you must have a legitimate reason, such as rent arrears or breach of tenancy agreement.

How do I set a fair rent?

Research the local market and compare similar properties in Stockwell to determine a competitive rate.

Should I hire a letting agent?

If you prefer a hands-off approach or want to reduce risk, a letting agent is an excellent investment.

What should I do if my property is empty for a long time?

Consider reducing the rent, offering short-term lets, or refreshing the property’s décor to attract new tenants.

What’s the best way to screen tenants?

Check references, conduct credit checks, and verify employment to minimise risk.