Renting out a property isn’t as easy as most people think. However, if the correct preparation is done, letting a property can bring you many benefits. We’ve come up with 8 simple tips to help you get prepared to let your property – you can thank us later!
Do some maths
Before you decide to rent out a property, you need to work out whether it is financially viable. Create a budget and consider the cost of renting including any renovations that will need to be made to the property. You also need to ensure you have enough savings to cover any possible void periods.
You also need to work out the tax implications and it is a good idea to contact several different estate agents in order to obtain a realistic estimate of the rental income. Going too high or too low could hurt you, especially in a competitive market like we’re currently experiencing.
Think about who your property may appeal to – for example, if it is a family home, spend some time in the garden making it appealing to both parents and children. It is also a good idea to be flexible with your requirements and consider restrictions on guests, pets and decoration on an individual case basis. It is worth spending a few weekends touching up décor, giving each room a thorough clean and completing general odd jobs around the home. Remember your property must also be safe to rent so get the boiler checked, a gas safety certificate and install fire/smoke alarms.
Finalise your proper tenancy agreement
Even if you decide to rent your property out to friends, you should always have a legal and formal tenancy agreement. It is also a good idea to customise the agreement to your individual needs. If your property has a large garden and you want this to be well maintained then include this in the contract.
Agent or no agent?
The decision of whether to use an agent to let your property is a very important one. If you do decide to use an agent, then remember that they could keep part of the rental income. However, many people appreciate an agent’s expertise, knowledge and help in finding and keeping a tenant. There’s also the consideration of the many laws and regulations surrounding lettings, so if you don’t use an agent, ensure you get compliant with all of them AND stay up to date with the changes which happen often! The alternative could find you with huge fines, or even criminally prosecuted.
Take a look at yourself
When showing a potential tenant around the property, not only is the building on show but you are too. If you are frosty, rude and unapproachable then this will rub off onto the property. Dress smart, be prompt and remember a business transaction can be friendly.
Get references for all tenants and check that they are who they say they are. If you are letting your property through an agency, they will do this for you but if not, it doesn’t take long to contact a previous landlord and you could later regret not doing it.
Ensure your deposit is protected
All tenants’ deposits must be protected in a Deposit Protection Scheme. If you do not abide by this rule, then you risk being fined and you may find it difficult to get future tenants.
Landlord and tenant relationships can be tough but try and be considerate. If your tenant has paid their rent on time every month and informs you they will be late with a payment, try and be realistic. In addition to this, you should reply to messages promptly and professionally and if you promised to fix something, stick by your word.
Ultimately, if you are a good landlord, your tenants will usually reward you with respect. If you are a landlord or are looking to let your property, then get in touch today for a chat about how we can help!