Top tips for letting your property
Do you have a property you are thinking of renting out or looking for one? What should you consider before finding a tenant?
Being a landlord can be very lucrative. It can also be exciting and, although scary at first, many people go on to purchase more rental properties once they have got things up and running. But it can also be a minefield, there are so many rules and regulations it is almost impossible to know about everything.
And then there are the scaremongering stories where someone’s property was trashed. Or TV shows showing a nightmare tenant. Or even news stories detailing legislation that could land you with a huge fine, or worse!
Don’t let this put you off!
With a good agent on your side, renting out a property can be a fantastic experience. Maybe you have become an accidental landlord, where you have ended up with an empty property but don’t want to sell it. This can happen through inheritance, relocation or sometimes divorce, or maybe you have bought a property with the intention of renting it out.
Either way, it can be a great way to invest money and even generate a supplementary income. Many people actually plan for their retirement by investing in property. The return on your investment is usually much higher than if you left the money in the bank. You will also benefit from capital appreciation of the property value in the future if the house prices rise.
But, with so many regulations and laws involved, what do you absolutely need to know before renting the property out?
Make sure that the property is presented well - Present the property in a way that will be desirable to a tenant. So that someone will actually want to live there. Monthly rent income is great, but an empty property is costly and should be avoided wherever possible. If your property is not looking great or needs refurbishing, you may struggle to find a suitable tenant, and the longer that the property is left vacant, the lower your income for the year will be.
Market the property properly with maximum exposure - your best bet is to use an agent to find you a tenant. They will have a list of potential applicants looking for property. They will also market the property fully online to ensure that you have total exposure to the market. They will also be able to arrange and conduct all of the viewing appointments for you.
Get all of your safety certificates up to date - an agent will be able to help here, too. There are many safety certificates that you will need to provide to rent your property out legally. Some things need to be done at the start of marketing and some will need to be in place for the start of the tenancy.
You will need an inventory - If you are happy to rent your property out without taking any deposit from the tenant, you probably don’t need an inventory. If, however, you want to make sure that the property is handed back by the tenant in the same condition that you rented it to them, then an inventory and schedule of condition is the only way. As deposits have to be protected when a tenant pays them, the only way to claim the deposit is by providing evidence. If you don’t have an inventory at the beginning of the tenancy, you will have no evidence of the original condition. This means that you will not be able to prove any damages to the property.
Preparation of legally binding paperwork and tenancy agreement - If you are a first-time landlord, you may be feeling overwhelmed already by the things that you need to have in place. The tenancy agreement and other legal paperwork are vital. Agents will provide all paperwork for you, or you can pay for a solicitor to create one. You could even download one from the internet for a small fee and amend it yourself but it is unlikely to be as robust in the event of an issue and you need to rely on it. Either way, you absolutely need a tenancy agreement.
Photo Credit: Sandersons UK
As mentioned at the beginning, renting out a property can be a minefield, as a first time landlord, it is advisable to employ an agent to provide a fully managed service for you.
There will be a monthly fee to consider. But you will have peace of mind that your tenant is fully compliant with properly met legal regulations and all certificates in place. This fee will usually include interim tenancy inspections and references to make sure that the tenancy runs smoothly each month.
Employing an agent is a relatively small expense when you think about how badly things can go wrong if you don’t know what you are doing.
If you have a property to rent out, or are thinking of getting into property yourself, get in touch with our lettings team to see how we can help.
