In today’s competitive property market, many landlords face stiff competition when it comes to renting out a home.
Whether it is your first time letting or you are a seasoned landlord, there are some steps you can take that can help you improve the chances of letting out your home with little time in between tenancies, and at the asking rate you desire. Here, we’ve compiled a handy “how to rent out a home” checklist that can make the process that little bit easier…
Determine your rental price
First, you’ll need to determine how much money you hope to earn in rental income to make sure you cover the mortgage payments and running costs while also turning a profit. Look You can start by researching average rental rates in the local area to see how much properties typically let for, as this can help give you a rough idea of what you might be able to earn. Then look at your own property – consider the mortgage, advertising and tenancy screening costs, maintenance, emergency repairs, council tax and more. Once you have taken these into account, you can work out how much you’ll need to still have profit left over after these costs are covered.
Before you can entertain the idea of letting a property to guests, the home itself must undergo preparations to ensure it meets all legal requirements for habitation. You will need to obtain documents such as an EPC and Gas Safety Certificate, as well as ensuring the house meets other criteria for fire and carbon monoxide safety as well as general cleanliness. If you are letting a property for the first time, you may also need to register as a landlord.
Listing your rental
You’ll need to market your property well to attract the right kind of tenant, and that you receive the asking amount in monthly rent. Have a professional photography take pictures of the property, and use these in an online listing that highlights key features such as property size and location, amenities, proximity to facilities and transportation, EPC rating and more. Once you receive interest in the listing from prospective tenants, you’ll then need to arrange a viewing to allow them to visit the property.
Once you have accepted an offer from a tenant, you’ll then need to arrange processes such as pre-tenancy screening, the signing of tenancy agreements, rent collection, and any issues that may arise during the tenancy such as damage, wear and tear or emergency repairs. Whether you wish to handle this yourself or instruct a professional to manage your property on your behalf is a matter of both choice and budget (remember, if you’re planning to use a letting agency, factor in the costs of doing so when running the numbers in step one).
Letting a home or indeed multiple properties takes a great deal of preparation, time and effort, and so many landlords will opt to instruct a letting agency to help with all of this on their behalf. Of course, you should also remember that as a landlord, you will be liable for paying property tax on your rentals, the amount of which will depend on your income and assets. Again, working with a professional can help in this area.