Over the months we have seen an increasing demand for rental properties, which is good news for landlords and an opportunity for investment. Here, therefore, are some tips for anyone thinking of buying to let or renting out their property:
Research other rental properties
Look into which rental properties are most in demand in the local area and compare rental levels. Be wary of any factor such as further development that may affect the property in the future as this will also impact on the yield.
Create a good standard in your rental property
Make sure the property is of a good standard in terms of the décor, the condition of the furnishings and the workings. You will also need to ensure you comply with all health and safety requirements for gas, electricity and furniture and furnishings.
Budget for void periods in your buy to let
Landlords should generally budget for 8 weeks per year to cover periods between rental agreements. If your void periods are less, of course, the extra return is a bonus.
Reference your tenants thoroughly
Don’t take tenants at face value. Make sure you have sufficient information about your prospective tenant to ensure that you can fully assess the risk. Check their employment status as well as their renting history and any references provided. Carry out credit checks and be wary of anyone holding back on such information.
Inform your property insurers and lenders
You will need to have specialist buildings and contents insurance covering the items you own in the property and don’t just assume that your current insurer covers lettings. Always inform them as well as your lender if you have a mortgage. Also, consider insuring against the tenant defaulting. This normally covers both rent and legal expenses.
Prepare an Inventory of your property
A full, detailed inventory of the property is essential, including a schedule of condition. If you don’t do this, the tenant has carte blanche to create mess and damage without recourse. A professionally prepared inventory is always wise as this will be comprehensive.
Don’t be complacent
A happy tenant is valuable and they won’t be happy if they don’t receive good management. As a landlord, you, or your managing agent are responsible for ensuring that the tenants not only respect the property, but stay there for as long as possible, so look after them.
Rental property deposit protection
Be aware of the mandatory legislation regarding Tenancy Deposit Protection. For more information, visit the DirectGov website www.directgov.uk.
Use a responsible letting agent
If you are going to use an agent for part or all of the service, it’s crucial that you look for a local agent who abides by a code of practice and, importantly, is subject to a redress scheme. This will ensure you receive strong, professional and independent advice .
There is far more to say than will fit on this page, but if any questions arise from this blog, do call Lynne here at the office for further help.