Planning for the unexpected provides peace of mind

With that in mind it’s a good idea to plan ahead and always have a budget for contingencies.

I recommend to all our landlords that they should set aside their first year’s rental income in a separate bank account to cover the cost of unforeseen and emergency repairs. If this pot is untouched in the first few years of the tenancy so much the better, but leave it in the bank to be prepared for all unforeseen circumstances and in the meantime it will generate interest.

There are of course other costs that must be taken into consideration at the start of a tenancy.

Landlords must ensure that all gas appliances in a property are checked by a qualified engineer at the start of the tenancy and every 12 months, with the details recorded in the gas safety certificate. The fee for these checks will start from around £60, depending on the number of gas appliances to be inspected.

Landlords must also budget for the EICR, EPC and any other relevant certificates.

The EICR (Electrical Installation Condition Report) Certificate is required every five years in Scotland and costs will vary according to the size of the property. The certificate must be available to the tenant or the local authority for inspection if requested.

In many cases there may be some remedial electrical works to be undertaken, unless the property has been recently re-wired or is a new build. However this is money wellspent as it will ensure the property is in good condition throughout the duration of the tenancy and will reduce the likelihood of any electrical fault developing – which would be far more expensive to rectify at that stage. Pricing for the EPC (Energy Performance Certificate) starts from around £90 plus VAT.

Galbraith can provide trusted and approved trades people for all works and repairs.

The initial outlay at the start of a tenancy agreement can seem high to first-time landlords, but these costs are predictable and many are one-off fees.

A service plan for boilers is highly recommended and some companies offer boiler replacement deals which are worth considering if the boiler is over five years old.

As a landlord you must have appropriate landlord insurance and it is worth choosing one that offers a rent guarantee insurance, to cover any potential void periods. Each insurance company will differ but a standard policy should cover buildings, new-forold contents, public liability insurance, glass and sanitary ware, floor coverings and alternative accommodation for tenants in the event of an emergency.

We can advise on appropriate landlord’s insurance and we offer tailor-made lettings services for landlords, including everything from a fully managed service to simple rentcollection.

With our fully managed service we conduct routine property inspections every six months and provide a report to the landlord of any issues that may require attention. When we are at the property we take the opportunity to speak with the tenants and ask them to highlight any issues of concern.

Minor issues such as a damp patch are always better to be addressed early on before they escalate and become an expensive problem. An open dialogue with your tenants is always recommended as a means to anticipate any potential problems before they escalate and to ensure that the tenants are aware of anything they could or should be doing to avoid potential maintenance problems.

We look at other parts of the property as well, such as the gutters and the roof and if they need to be cleared or inspected we advise on this and can then arrange repairs if necessary.

Recently we visited a vacant property we were looking after for one of our landlords and discovered a burst pipe. In this instance we were able to turn the water off at the stopcock and arrange for an emergency plumber to fix the leak and check the property for any further issues. We then liaised with the landlord’s insurance company and provided quotes for repairs. Time is of the essence in these situations and particularly in this case as the landlord was due to be abroad for several months!

Planning ahead for unexpected costs, in the hope that they do not arise, is well worthwhile and offers landlords the ultimate peace of mind. n

Rebecca Reed 01556 505 346 rebecca.reed@galbraithgroup.com

We can advise on appropriate landlord’s insurance and we offer tailor-made lettings services for landlords, including everything from a fully managed service to simple rent-collection.

Rebecca Reed