Establishing a letting strategy
Proper planning is crucial when you have made your mind up to let your property. First, you should take some time to think about what kind of tenants will be suitable for you. Select a tenant according to the location of your rental property. For instance, if there is a university in the neighborhood, then your prospective tenants could be students of that university.
After deciding on the type of tenant, you should maximize your property to attract the best potential tenants. However, too much decoration may not be appropriate as this is often about personal taste. Instead, the decoration should be somewhat neutral so that it can be treated as a blank canvas, this will after all be your tenants home.
Appointing a letting agent
You should not underestimate the commitment and work associated with letting a property. Therefore, most of landlords take the services of a professional and experienced letting agent to assist them with several tasks related to letting and property ownership. Letting agents promote your property through many marketing methods including offline and online methods. Also, they facilitate the viewings and negotiations with the prospective tenants in order to settle the agreement and rental price. In addition, they verify tenant’s identification, credit history and references. Moreover, they also handle the maintenance problems with the property. Some letting agents collect rent from tenants on your behalf. They organize inventories, tenancy agreements and deposit schemes and provide the landlords with professional advice and guidance.
Preparing your property to let
If you want to attract good tenants to your property, you should decorate and maintain it well. Tenants do not like “odd-looking” properties, they need to imagine living there. Maintain it each time before a viewing is conducted. Make sure the gardens are neat and clean. Weed and mow the lawns. Repaint the doors and window frames. Dust/garbage bins should be placed in a place where they are not visible. Clean the whole house and remove unneeded furniture and other debris and clutter from the rooms. Repair the existing furniture, fill the cracks in the walls, and check the leaky taps as well. Decorate all the rooms in natural light colors.
Cost of letting your property
Letting property does not mean you have got a check book which you can sign to draw money every month. There are certain costs that you have to bear over the tenancy period. These costs include maintenance costs, energy performance certificate, safety inspection costs, income tax, ground rent & service charges, monthly mortgage payments, inventory preparation costs and letting agent & management fees. Make sure your tenancy fees are the same or similar rate to other properties in the area and that you have enough to cover all your costs as well.
Landlords are required by the law to refurbish their properties and perform any crucial repairs needed. Moreover, the law requires them to present an Energy Performance Certificate to tenants. In addition, landlords have to present a gas safety record to assure that all the gas appliance and pipe work comply the safety standards and there is no danger of fire in the house. Smoke detectors should be installed in each room. Also, landlords are required to get safety certificate for all electrical devices in the property to ensure that they are quite safe and no danger will be occasioned by them.
Owing and renting out property can be lucrative and professional letting agents can save you time and money.