Here are a few of the main points to think about when you’re considering renting out your home as a landlord.
Make sure you choose a policy with an accredited and well-reviewed scheme such as Homelet. Do your research and make sure you get the best cover for your circumstances. Investing in insurance will reduce risk factors for you and make sure you don’t lose out.
2.Using a Lettings Agent – Yes or No?
Choosing a lettings agent to manage your tenants can be a great idea if you don’t have the time it takes to administrate everything yourself. It can take the pressure off you in terms of pulling in new tenants, drawing up contracts, fast maintenance and collecting rent. However, you will have to pay a substantial sum in fees and it may affect your buy-to-let insurance.
3.Gas and Electrical Certification
You must comply with government specifications for these essential power sources or you could face prosecution and even imprisonment. Find details of how to be Gas and Electric compliant here.
Each property on the market will need and Energy Performance Certificate which you will need to procure before the property is put on the market. This document if proof of the energy efficiency of the property; a high rating will attract tenants.
Draw up an inventory and take photos for evidence to avoid future disputes. Make sure you record full details of each item of furniture, fixtures and fittings on a room by room basis before letting. Include the condition, brand, size, shape, colour and any other essential detail.
6.Fire and Safety
Make sure every appliance and each bit of technology that will be in the house has been examined to comply with essential safety standards to avoid injury or accidents. Repair or replace anything non-compliant.
Usually a deposit for rental will be about 6 months’ rent and will be held for the duration of tenancy to cover any potential damage to the property or non-tenant property within. Entering into a tenancy deposit protection scheme is more attractive to tenants.
When disputes occur, you will need financial and legal cover. Choose a scheme registered to with The Property Ombudsman. This service will help resolve disputes for free, and they are bound to codes of practice that means all parties are treated fairly and within the law.
There are many things to consider when making the big decision to rent out a property you own. Make sure you have thoroughly researched all aspects before you go ahead; consider the pros and cons of all your options and work out the best course of action for you.