There are a lot of benefits when it comes to renting your property out, such as generating additional income, building your portfolio or keeping a property you don’t want to live in. But you should think carefully about the benefits and drawbacks of renting a property out.
Read on for some things to consider when renting out your property.
Prepare Your Property
You first need to make sure you have spent time making sure your property is able to be rented out, such as informing the Local Authority, updating appliances and furnishings if applicable and speaking to your insurance company. You want to ensure no problems will come back to affect you once you start renting.
Make sure you have the right to let, as you may need consent from a mortgage provider or freeholder before renting. There are also different regulations surrounding renting depending on your location, so understand the rules that apply to you based on the region your property is in.
Type of Rental & Tenant
There are various types of renting that each have different regulations, legalities and rental expectations. This can include student letting, tenancy letting, holiday letting, lodger letting or a room letting. Think carefully about what type of renter you want in your property, as this will alter the type of agreements you can make.
You want to rent to tenants who will keep your property in a great condition and pay all rent on time. You should ask for references, proof of employment and credit reports which can tell you if a client will be a good tenant. If a client seems like a bad investment, you can use a guarantor which guarantees a nominated person will pay the rent if you tenant can’t.
Tenancy Agreement
You need to clearly establish the expectations and requirements between you and your new tenants, which can be laid out in a detailed tenancy agreement, making sure you outline who is living there, for how long, any obligations, maintenance and upkeep, an inventory and information for deposits and rent payments. Both sides have rights in a tenancy, so both sides need to cooperate for the relationship to work well. Tenants have the right to complain if you’re not maintaining your end of the agreement.
Be Prepared For Upkeep
You have an obligation to maintain your property, so don’t be surprised if you have to pay extras to fix your property to make it habitable. This can include the heating, electricity, gas and water. While the bills for these utilities will probably fall upon the tenant unless agreed otherwise, the upkeep of these systems will fall to you.
Work With Watsons
Watsons is one of East Anglia’s leading property firms, who can provide expert service whether you’re looking to let your property, rent, sell or need a property valuation.
So visit our website now to find out more about what services we can offer you, and find contact details of all of our offices for whatever specialty you need.
