Becoming a landlord is a big step for anyone, and there are many pros and cons to the business. Whether you have recently inherited a property, have moved in with your partner but don’t want to sell your old place, or plan to go traveling or move abroad, here are six things to consider before you rent out your property.
Find out how much you can make
Just as you would get a property valued if you were selling, you will need to get a rental valuation to find out how much you should be charging tenants. It is also worth doing some researching and finding out how much similar properties in the area are let out for – if the rate of income you need or want from the property is not achievable, it’s best to know right at the beginning to avoid disappointment further down the line.
Learn about regulations
There are quite a few rules and regulations that apply to landlords, and it’s important that you know about all of these before you jump in. These laws cover things such as gas and electricity, smoke detectors, carbon monoxide detectors, contracts, etc.
Think about ongoing costs
If this is your first time letting out a property, you could be unaware of many of the costs which come with being a landlord. You will need to spend money initially to make sure that your property is in compliance with any safety requirements, as well as ongoing maintenance and fixing general wear and tear.
Talk to your mortgage provider
Before selecting tenants to live in your property, you will need to make sure that your mortgage is all in working order. If you have previously been living in the property and now want to let it out, you will need to call up your provider and let them know about the situation. If the property you want to let out is one that you have inherited, you will need to enquire about a buy-to-let mortgage, unless of course, you own the property outright.
Finding the right tenants
There is no shortage of people looking for rented accommodation, but you want to ensure that you are attracting the right people into your property. Select carefully where you want to advertise if you are doing it yourself, or which letting agent you choose to vet prospective tenants on your behalf. If you opt for the latter, be sure of the requirements they have for potential tenants in-house and be absolutely certain that you agree with their checklist.
Would you be able to survive if a tenant didn’t pay their rent?
Voids in rent payments happen through multiple reasons; maybe your tenant up and left with no warning, maybe they got made redundant and couldn’t pay their rent on time. Would you be able to cope financially if you were unexpectedly left without this income? If you have a stable job and income and your rental property is an added bonus, then it is likely that you are in a great place to start renting!