If you are thinking of letting your property, there are some things you must legally do, and things that will help find a tenant and maximise your rental income. Here, we reveal our top tips for new landlords, getting you off to the best start as you embark on letting your home.
Make your home as appealing as possible to tenants:
Legally, you must ensure the property is safe to live in:
You must also:
Setting the rental price of your property is a balance between getting the most from your asset and remaining competitive to secure a tenant. Rental price is usually calculated as a percentage of the property’s value. Your trusted local estate agent can help get the figure right, taking into account location, amenities and house size.
Letting people know your property is available is crucial to finding a tenant. Professional photography, accurate descriptions, marketing on property portals and social media all contribute to successfully letting your property. Estate agents play a key role here, publicising your property to a wide audience and matching it with appropriate candidates. Your agent can also conduct viewings on your behalf, making the process hassle-free.
Once you have interest in your property, it is time to choose your tenant. You must carry out thorough tenant referencing to ensure they are legally and financially able to rent, including:
An estate agent can carry out tenant referencing on your behalf.
Your tenant must look after your property and report issues, but you are responsible for maintaining the property including:
If a tenant has a problem, you must fix it/employ someone to fix it. The tenant must allow access for inspections/repairs but you need to give them at least 24 hours’ notice in writing.
Many landlords choose managed lettings with an agent, who will maintain the property on their behalf. If the tenant has caused the issue, e.g. damaged a wall or blocked drains through improper care, they must fix it themselves or pay for the repair work needed.
If you self-manage while letting a property, it is good to have clear communication with your tenant. You want them to approach you sooner rather than later with any issues and feel they can ask for help. Make it clear at the start of the tenancy how you can be contacted. It is also sensible to keep on top of maintenance to avoid costly repairs down the line.
Once your property is let, that is not the end of the story. Yes, you will have money coming in, but you will also have expenses to budget for:
As a landlord, your rental income is taxable (minus allowable expenses), and you will also need to pay Class 2 National Insurance if your let counts as running a business. You must keep detailed financial records of the rent coming in and all your expenses to accurately fill in your tax return and pay the correct amount.
First-time landlords make a few common mistakes you should be prepared to avoid:
It can feel as though there is too much to think about when letting your property, but help is at hand. An experienced estate agent is your ally as a landlord, and they can guide you step-by-step through the entire process. They can be as involved as you want and really relieve some of the stress and admin you may be dreading. Find out more about the benefits of using a letting agent here.
If you are planning to let your property and want to find out more, read our guide to letting a property. There are more useful tips and checklists to set you on the right track. And, if you have got any questions, we are always here to help.
From friendly advice to tenant checks and full property management, we offer a range of services to suit you. Please get in touch to find out more and discover why landlords choose Charters as their letting agent time and time again.
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