Do you own a property that you are thinking about renting out to tenants? For whatever reason that may be, whether you have been unable to sell your current home or have acquired a second home if this is something that you are considering doing, you will need to know what is involved so that you don’t become overwhelmed.
In this short post, we are going to provide some useful tips to set you on the right path.
First things first, you are going to need to do a little homework on properties in your area and find out how much they tend to be let for per month. You will also want to have a think about the demographic you want to target, especially before you make any changes or buy any furniture. For example, who would be better suited to your home? Is it a home for young families or working professionals? Also, don’t feel shy about chatting to anyone you know that has been or is currently a landlord, their input could be invaluable.
Get in Touch with Your Mortgage Lender
You might not think that this is something that you would need to do when renting out your property. After all, mortgage payments are going to be paid directly from you right? Nope! If you fail to let your mortgage lender know, you could be breaking the terms of your mortgage. So get in touch with them before you do anything else.
Don’t Forget Your Insurance
Your existing building and contents insurance won’t cover you if you are letting out your property so it is important that you get in touch with your provider and let them know of your intentions so that they can amend your policy and set you up with landlord insurance. Ask your provider if your policy will payout in the event that your tenant misses a rent payment.
Get Your Property in Order
As you can imagine, before you go ahead and rent out your property to tenants, you will want to get any existing maintenance work that needs to be done to the property, up to date. For example, make sure any decorating is up to scratch – a mini-makeover can go a long way – all repairs are carried out and ensure that all appliances are in good working order. You will also need to take into consideration whether you want to rent out the property as furnished or non-furnished. It is worthwhile offering both options as it can then be marketed to a wider audience.
If you do decide to go with the furnished option, you will need to make sure that any upholstered furniture is fireproof. On that note, make sure the property has adequate alarms in places, such as smoke and carbon monoxide.
Consider an Agent
If you don’t have the time or inclination to manage the property yourself, as let’s face it, it can be a lot to take on, you can always put it into the very capable hands of an agent. For example, Ross & Liddell can provide you with a management service that takes care of everything for you and will give you peace of mind that your property is in the hands of professionals.
I hope you found this short post useful!