Becoming a landlord is not as easy as it may seem; there are several factors that need to be kept in check when you are letting a property. Letting a home involves a lot of preparation and requirements that as a landlord you must fulfil. At Century Residential, we like to give you the best information we can to prepare you for your future plans; so we have created an easy guide to help you.
If your property is on a mortgage, you are legally bound to inform your lender about your plans to let the property. Some mortgages do not allow you to let your property; and other mortgages would require you to obtain a consent form before letting it out.
There are some instances where your lender may levy a fee or alter your interest rate when you want to let your property. So, the first and most important thing you must do as a landlord if your property is mortgaged, is to check with your lender about the rules and regulations that apply to your mortgage.
Usually, corporate tenants tend to rent for two to three years; with the option to end the tenancy before the mentioned period if they wanted to. If you are looking to let your property for a shorter span, say about six months to a year; then you need to consider coming up with a competitive rent. This will ensure that the property is not left without tenants for too long. You will also need to consider your mortgage if you have one; as some only allow a tenancy for up to 12 months at a time.
If you decide to let your property, you are legally bound to inform HM Revenue & Customs as you will be liable to pay taxes. You will have to do a self-assessment tax return; and it may also affect the Capital Gains Tax when you decide to sell your property. You can take the help of a professional accountant, or speak to our lettings team who can connect you to the right people to help you.
First impressions matter. When you decide to let, make the property look attractive to impress any potential tenants. At the bare minimum, it is essential to declutter, repaint and clean the property before you let it. You can also do decorative and purposeful renovations if you are looking for a higher rental income. With over 200+ properties in our portfolio, we can advise you on redecorating your property for a quick let if you need any guidance.
Finding the right rental insurance for your property is vital to cover any damage caused to the property or its possessions during the tenancy. While your tenant will be required to take contents insurance; as a landlord, you will have to invest in suitable rental insurance. This will be to cover the cost of the damages caused to the property, possessions in property, accidents or injury to the tenant, or any visitor to the property. It’s important to mention all the high-value items that you leave on the property; and pay the appropriate cover in order to claim any damages. It will also protect you from any loss of rent or breach of tenancy.
It is mandatory to ensure your property is safe and secure before you let. The mandatory safety checks include a gas safety test, electrical safety test, and appliances safety tests. Smoke alarms must be fitted on every floor for the fire safety test. Only after fulfilling these tests can the property be listed to let.
We always recommend doing a complete inventory listing for all the items kept within the property to avoid any disputes when tenancies end. Appliances, furnishings and other items are mentioned in the tenancy agreement to keep track of your belongings while letting and at the end of the tenancy.
Should you need any assistance, speak to our lettings team. They will be more than happy to talk you though how we can help you with this.
We understand that being a landlord can sometimes be daunting; as it is quite challenging to find the perfect tenant. When the background checks are skipped, you might end up with unreliable tenants who skip or delay rent, cause damage to property, and more. It is essential to keep a solid background verification in place to select the right tenant who suits your requirements.
With so much to consider, landlords have quite a task when they decide to let their property. Proper documentation and finding the right tenant is the key to have a smooth tenancy. Remember, you can always get in touch with us to ease the process and help you through the relevant paperwork, whilst finding prospective tenants from our large database.
Looking to let your property? We’re on hand to help make the process as stress-free as possible. Call our team on 01634 570057 today to get started.