I am thinking of renting out my property what do I need to consider?

Question

Legal requirments and any general tips

Answer 1

Hi there

One of the most important things it to protect your property.

1. Contents insurance and buildings insurance should include provisions for the property being rented. Contact your insurance company to make sure this is incldued.

2. Check tenants thouroughly. Get references from employers, bank, and if posisble get a credit check through companies such as Experian. If they have bad debts to start with - stay clear.

3. Consider having a clause in your contract stating "no pets" to help protect your property from heavey wear and tear.

4. Take photos of the interior, along with a detailed list of contents, then get the tenants to sign to verify the list and condition of the property and its contents.

5. Make sure you follow the correct process for shorthold tenancies, you can get a "lettings pack" from WH Smith for about £10.

6. Make sure your mortgage company is aware of you letting the property - they will often require a copy of the tenancy agreement.

7. Minimise your letting costs, avoid paying 10% commission to letting agents by using free services to advertise your property such as www.simple2rent.co.uk. But don't just use one, try as many palces as poissible to palce an ad, perhaps local newspapers and a free ad at the local supermarket.

8. Most tenants are decent and fair people, build a relationship with them, be fair but set clear rules to ensure there are no misunderstandings.

These are just some points that come to mind, overall good planning and preparation for letting will help to ensure trouble free letting.

Answer 2

When you draw up the renter's agreement, make sure you list no pets or no overnight guests more than 3-5 days. These are the two things that will keep the renters in order. The no pets rule will keep the urine stains and smell out of a home. The overnight guests thing is really good because if the renters start having people over all the time then you can start charging them rent if you want and a good way to evict some unruly tenants if need be.

Answer 3

If it were me and i wanted peace of mind for slightly less income, I would rent it through a well-known agency, using a contract with them whereby THEY guarantee 100% of the rent - if the tenant doesnt pay the agency, the agency is still legally required to pay you. Also make sure that the agency is responsible for any damage. This way is the most secure, although the agency will take a greater percentage of the monthly rent.

You may have to advise your insurers and mortgage provider (if you have one) about the change of use.

Answer 4

Definately keep upkeep costs in mind. You don't want to rent to people who will trash the place.

Consider what you are willing to be allowed in your place. Will you let your tenant paint or have a flower garden? What about pets? I prefer pet-friendly areas myself, but I know some people do not. What about parking? My landlord is rather particular about letting people park on the road, and for a good reason :It's narrow as it is.

As for the legal side, I agree that a real estate person could advise you better. Or maybe you can check the county offices and see what you can learn there.

Good luck!

Answer 5

Download a copy of the residential tenancy act from your state or province, read it thoroughly as tenants have more rights than owners do. Of course you need to screen your tenants and check their references. Obtain permission from each potential tenant to check their credit, this is probably the number one screening tool, and then obtain a copy of their credit report.

As far as the tax implications, check to see if your mortgage payments are tax-deductible. If they are, then you should only be making interest-only payments on your mortgage in order for the property to positive cashflow, and use the proceeds to pay down non-tax-deductible debt (it makes no sense to pay down a tax deduction if you have non-deductible debt).

If you find the right tennants, you may be happy for years and never have a problem, but definitely find a copy of your local residential tenancy agreement and review every line before you make the decision to rent your property out to fully qualified renters.

Answer 6

Tenants from hell ! You firstly need to find a reputable letting agent, make sure they do regular inspections and that they do a full check on potential tenants. On the whole I would chose a professional person/couple with no children. I love children but they do tend to rip wallpaper and draw on walls. Also try to be a good landlord.

Answer 7

you surely might want to tell your human being loan service at cutting-edge and some mortgages do no longer enable you to sub enable , so verify that out before you dedicate to at least something As for inland gross sales , there are rules on what or perhaps as etc , proper in case you telephone up their help line for suggestion as you'll likely be answerable for tax , besides the undeniable fact that it will be paid retrospectively after that tax 365 days April to March , and also you'd be allowed to easily have your tax code amended to pay back over the 365 days

Answer 8

Unless you have done it before, I recommend that you use a letting agency. They will sort out all of the paperwork and keep a check on the tenants, they also know what to do if a bad tenant gets in.

Answer 9

So much to consider......I would take applications for renters. Review the apps. This will help you screen people. There are some people who will not take care of your property! Make sure you get a deposit, have them sign a lease agreement......

Answer 10

Just make sure you get renters insurance. Make sure you have tenants sign a paper saying that the contents have to be insured by them. Anything happens to the contents because of a fire, flood, or whatever, you can guarantee they will try to make you pay. This way, you're covered.