Renting properties is a great way to generate income, but it is not all plain sailing. Before you let a home you need to tick a few boxes, do a little prep work, and get all your papers in good order. Here are some top tips for both would-be landlords and people who are already renting properties.
Understand Your Responsibilities
Renting a property comes with many legal responsibilities. You have to ensure that your property is safe and habitable and that you have the right to rent it out to temporary tenants. Some local councils may require you to obtain a landlord licence, for instance. These can cost up to £500 and may need to be renewed every few years. You need to investigate all these responsibilities before you rent your property.
All homes need an Electrical Installation Condition Report or EICR. This ensures that the property has a safe and functioning electrical system that does not pose a hazard to the people that live there, i.e. your tenants. Getting an Electrical Installation Condition Report is actually pretty quick and easy, especially if the property’s electrical system is in good working order and you just need this box ticked. Trade Facilities Services can get a qualified electrician to your property to perform the check and give you the certification you need so you can get your property on the market.
To Furnish Or Not To Furnish
This is the question. Renting a furnished property can often entice a greater number of tenants, as they may not have much furniture of their own to move into the property. It comes with responsibilities, or rather it comes with liabilities. Accidents happen, and your tenants could damage your furniture and this can lead to problems. If you do intend to rent your property furnished or partially furnished your required deposit amount should reflect this.
Consider upping your insurance level too. Depending on the fixtures, fittings, and furnishings you have in your rental property you may want to add extra insurance or insure specific items to make sure you are covered. This is one of the reasons most landlords avoid renting a furnished property as it can create extra costs and extra problems.
Outsource Your Responsibilities If You Can
For the simplest landlord experience, where your rental property becomes an entirely passive income, you should consider using a property management service to take care of things for you. They can not only manage your property during your letting, but they can also take over from day one. The property management company will meet the prospective tenants, handle the paperwork and the vetting, they hold on to the deposit. This is a much better way to rent if you can afford to lose a bit of your potential income to pay them to do it.
With a little planning and preparation, everything becomes easier. Use some of these tips to help make your landlord life feel like a dream and not a nightmare. Get your paperwork and certifications in good order, decide whether or not to add some furnishings, then make things easy and hand the keys over to a property management company.
