Renting out property has become more popular in recent years. Succeeding in the rental property market can be financially rewarding, but also comes with many challenges. If done incorrectly, it can be expensive and there may be legal consequences. This blog will outline seven tips for renting out your property.
1. Check whether you can rent out your property:
Before renting out your property, you must check with a mortgage lender to see whether it is permissible. Some mortgage agreements prevent people from renting out their property.
2. Legal responsibilities:
When renting out your property, you will have many legal responsibilities – you must ensure that your property is safe and fit for purpose. For example, electrical installations must be safe and gas safety checks must be carried out annually. Make sure that your tenants also have access to instruction manuals for major appliances such as the cooker, boiler, and alarm system.
It would also be your responsibility to check whether your tenants have the right to live in the UK in line with the Immigration Act – if you fail to conduct such checks, then you can face a fine or jail.
3. Written agreement:
It is also essential that you provide a written tenancy agreement. This agreement must clearly outline both the property owners’ and the tenants’ responsibilities. If you request a deposit from your tenant, then you must protect it in a government-approved tenancy deposit protection scheme.
4. Do you research:
It is essential that you are aware of the current trend in the rental property market and how much comparable properties are being rented out for around your area. Doing your research will allow you to rent out your home at a competitive price.
Furthermore, you will need to get to know your target market; consider who your property would be most suitable for such as large families, single professionals, or students.
If you need further guidance, a rental agent can also support you through the rental process and can help you find potential tenants.
5. Furnished or unfurnished property:
In most cases, unfurnished properties are more appealing, however, students may prefer furnished properties as they are more affordable. Remove any personal belongings from the property if you choose to rent it out furnished. Old furniture should also be removed to attract more prospective tenants.
Ensure that the property is well-maintained and clean before renting it out. It is recommended that you get professionals to clean the property including the windows before renting it out. If necessary, hire professionals to re-paint the walls as this will set a good first impression for your tenants.
7. Property owner insurance:
You must inform the current building’s insurer about your intention to rent out the property. Property owner insurance will help to cover potential financial losses associated with renting out your property. Having property owner insurance in place will help protect the property and your investment.
Before renting out your property, it is important to do your research, to get to know the property market and how much comparable properties in your area are being rented out for. You will also have many legal responsibilities such as ensuring the safety of the building before renting it out. Following these steps and getting professional support will enable you to rent out your property successfully.
Watch our Tips for renting out property video here: 5 tips for renting out property – YouTube
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