Letting out your property can be a lucrative choice for people who want some extra cash coming in. However, there are some essential steps you need to be prepared to take first. If you don’t do this properly, you could end up in all kinds of trouble! Follow these steps to get it right and be successful:
Your mortgage provider won’t appreciate it if you go behind their back and rent out your property. This is not the right way to go about things, and if you get caught you could find yourself in trouble. You need a buy to let mortgage to rent your property out, and all it takes is a chat with your mortgage provider to sort one out for you. You should think of this as a business in order to do everything properly.
Once you’ve got your mortgage sorted, you can hire a letting agent to sort everything else out for you. Of course there are both pros and cons to this, so it’s up to you to weigh them up and decide what’s best for you. They can give you a lot more time and make this process stress free, if that’s what you’re worried about.
Your property will need to reach the standards outlined by the government for it to be fit to live in for a tenant. Your electrical appliances will all need to be checked and safe, and your furniture shouldn’t cause any hazards. You’ll need certificates to back this up.
Insurance is very important; without it, you’re taking a huge risk. A landlord insurance guide will tell you all you need to know, so you know what kind you need, and what you’re protecting.
Now it’s time to search for a tenant. You can advertise in the paper, on local news boards, or online. You’ll need to set up viewings with them, and hope that somebody would like to rent your property from you. If they do, you’ll need to vet them carefully to make sure they are who they say they are. Make sure you do background and security checks, even if you think you know the person.
A tenancy agreement needs to be drawn up and signed, so that any disputes are easily settled when it comes to the tenant moving from the property. Oral contracts are almost impossible to sort out if something goes wrong.
You’ll need a deposit from your tenant, which must be placed in a government approved scheme. You’ll then need to send them the details within 14 days. If you keep the deposit yourself, even with the intention of saving it, you could get in a lot of trouble.
You’ll more than likely get calls from your tenant every so often to perform maintenance and repairs. However, you need to check on the property at least once every 5 years to make sure everything is still safe and in working order.
Follow this guide step by step and you’ll be a successful landlord!