So, you’re thinking of letting out your property. This can be a great way to pay off your mortgage and make a bit of money as you do it, but you need to be prepared to get some work done first. The following 10 considerations are all important aspects to think about before you let your property:
1. You Need a Buy to Let Mortgage
Many lenders don’t like it if you go and rent out your property without getting a buy to let mortgage first. In many cases, all you need to do is go and chat to them to let them know.
2. Do You Want Somebody Else to Take Care of it for You?
If you’ve done your research properly, you’ll know that letting out a property can be a lot of work. However, somebody else can take care of the whole thing for you. I’m talking about a letting agent; they will help you as much or as little as you need. This can help take some of the stress off you.
3. Who is Your Property Suited To?
You should consider who your property is suited to, and who you would like to be your tenant. If your property is suited to families but you wanted to let out to young professionals, you may have to re-think your plan. Different areas will appeal to different kinds of people.
4. You’ll Be Required to Make Repairs
It isn’t up to the tenant to make repairs; it’s up to you. You need to be prepared to handle any repairs, emergency or not, in a timely manner no matter the cost.
5. You’ll Be Taxed on Any Earnings
This isn’t going to put a smile on your face, but you can’t ignore it; you’ll be taxed on any earnings that you make. Even if you don’t see this as a full time job, you need to inform Inland Revenue and Customs of it. You might find it useful to look at separate tax tips for landlords after you’ve finished reading this post.
6. You Should do Background Checks
If you fail to do background checks on a tenant, more fool you. They could be anybody, capable of anything. Do you want them living in your property? Even if you’re sure they are a good person, you need to protect yourself by doing these checks.
7. It’s Up to You to Get Insurance
Your tenant will need content’s insurance for their own belongings, but you’ll need building’s and content’s insurance too. Anything could happen, and you don’t want to end up with a huge bill due to a fire or flood.
8. You Need to Create a Reasonable Tenancy Agreement
Your tenancy agreement should outline the responsibilities of both you and the tenant.
9. It May Not Always Be Occupied
Bear in mind that there may be times when you must cover the bills and rent, as you may not have a tenant. Could you afford it?
10. Your Home Needs to Be Deemed Safe
Make sure everything is in working order and get certificates to prove it. Your home needs to be deemed safe officially before a tenant can move in.
Do you still want to let out your property? Leave a comment with your thoughts!