Thinking of becoming a landlord? iConn Property Management, Canterbury
Here Rightmove advise on the dos and don’ts of being a landlord:
Managing a residential lettings property means covering all the bases – a combination of common sense, practical organisation and using a letting agent who signs up to the standards of a professional body such as ARLA (Association of Residential Letting Agents).
Alongside this there are a range of basic do’s and don’ts; ARLA President, Peter Savage, highlights these below.
Notify your mortgage and insurance providers
Speak to your lender about your mortgage terms. Letting a property requires a different form of mortgage to owner-occupation and the same applies to insurance so discuss the change with your provider as buildings and contents may not be covered. It is also worth taking out insurance to protect against a tenant defaulting on rent.
Sign up to Deposit Protection
It has been a legal requirement for Assured Shorthold Tenancy deposits to be protected by a government backed scheme since 2007. For more information, visit our page Deposit Protection or go to the Communities and Local Government website.
The pros and cons of furnishings
A furnished property can be let at a higher monthly rental however if the furnishings are second-hand or ‘leftover’ it can deter prospective tenants. You also need to consider whether everything meets Furniture and Furnishing Regulations.
Pipework, appliances and flues must be maintained in safe condition. Gas appliances should be serviced in accordance with the manufacturer’s instructions. If these are not available it is recommended that they are serviced annually unless advised otherwise by a Gas Safe registered engineer.
There are also regulations governing the installation of electrical equipmentin rental properties – ensure that these are being followed and that any equipment in the property is regularly tested, as you will need to prove your property is safe.
Enlisting a managing agent to oversee the property can help you to overcome all of these hurdles, especially if you are moving away from the area. At the very least work with a lettings agent to find your tenant as this helps to make the process smoother and can ensure that your tenants have undergone checks. Select the agent carefully, always use a professional agent (such as ARLA members) to ensure client money protection thereby securing both your money – and that of your tenants’ – and access to a redress scheme should it be required.
Finally, when making decisions about letting out your home, try to remember that you are handing it over and hopefully creating an income stream. It may have been your home or that of someone else in the family but you now need to allow someone else to make their home in it me for someone else and, hopefully, an income stream for you. The chances are that accidental damage or wear-and-tearwillhappen, and tenantswillcomplain – so try and keep a clear, detached head when dealing with those kinds of issues, and don’t take it personally.