If you are considering letting out your property, there are many important factors to consider. These tips will help you understand your responsibilities as a landlord and will help protect your property.
Tip 1 – Do your research
Get to know your local market. Look at similar homes in the area and find out how much they are being let for. Rental amount when letting out your property, needs to be set as the right level as if set too high or too low, prospective tenants may not view.
Think about the kind of tenant you would like to occupy and what your home would be suitable for. As a Letting agent we are adept at this and can advise. A competitive price may keep your property rented longer and can minimise any rental voids.
Tip 2 – Preparation of Property
Decide whether to let furnished or unfurnished. Personal belongings or anything of value should be removed. Remove anything that’s old and no longer fit for purpose or an acquired taste.
A blank canvas is more appealing to prospective tenants looking for a property to let. Neutral colour schemes allow tenants to picture themselves living there and it’s easier to maintain on check-in and check-out. Clear outdoor spaces and tidy up garden areas will also be attractive to renters.
When letting your property, consider hiring professionals to do a deep clean.
Ensure you have adequate number of keys for windows, doors, gas/electric meters.
It’s good practice to provide instruction manuals for boiler, cooker and white goods to tenants at check-in.
Tip 3 – Building Insurance
Your buildings and contents insurer must be made aware of your intention to let the property as your policy will need to be amended/changed.
Consider arranging landlord insurance to cover any financial losses connected with your rental property. Whilst landlord insurance isn’t a legal requirement, its advisable as it not only protects your building, but also your tenants and investment as a whole.
Tip 4 – Know your responsibilities
A Landlords responsibility should never be understated. Your mortgage provider may have caveats including in the mortgage agreement preventing you from renting your home. Speak to your mortgage provider for advise before proceeding.
Be prepared to be on-call 24/7 as many issues may need immediate attention. Examples may be due to a gas leak or broken boilers. As a Landlord, you are accountable for all repairs and maintenance and taking care of refurbishment of the interior and exterior of the property when required.
Tip 5 – Study property legislation
There is nearly 200 laws which landlords need to adhere to when letting a property so this is a major task of knowing and keeping up-to-date with legislation.
Landlords are expected to carry out credit and right to rent checks in line with immigration laws in England and take and protect deposits whilst ensuring all paperwork is in place. The property also must be fit for human habitation and safe for your tenant to occupy.
The safety of your tenants is very important – a Gas Safety check must be done yearly, an EICR every 5 years but its a good idea to make sure all electrical appliances and wiring are tested regularly too. Smoke alarms should be fitted on every floor and carbon monoxide alarms where necessary.
Your property must have an Energy Performance Certificate at Band E or above. A property cannot be marketed without an in-date EPC. These certificates are valid for 10 years.
As a landlord, it’s important to understand your financial responsibilities – income tax and national insurance. All landlords are subject to Income Tax if the revenue of the property exceeds £2,500
If you are internationally based, there are additional responsibilities.
Tip 6 – Finding the tenant
Finding the right tenant can make all the difference from a successful rental to a complete nightmare!
It’s important you fully understand everything and you have all documents in place at the beginning of the tenancy. If in doubt, advice should be sought from a letting agent or a property manager.
If you are unsure whether renting the property yourself is the right decision, you may decide to instruct a letting agent or property manager. It’s important to use an expert who follows best practice and works to industry standards. Propertymark Protected letting agents are trained and experienced professionals who help landlords manage their rental properties.
An agent can do everything from advertising your property, dealing with tenants direct and ensuring all paperwork is done correctly. ARLA Propertymark professionals will also have Professional Indemnity Insurance so you and your money will be covered by Client Money Protection giving peace of mind throughout the process.