Ever thought of being a landlord? You may decide to buy a house to rent out, or maybe you simply need to move house but can’t sell the one you’re currently living in. Having tenants could create and income stream for you or simply cover the mortgage on your house for a while.
There are a variety of aspects of rentals that you need to take into account and action. Many of these are legal requirements and should therefore be completed as soon as possible. Others are tips that may help you get a higher price per calendar month, and also help your property to be snapped up off the market.
Keep Your Ideal Tenant in Mind
When you first buy the property, make sure you know who you will be appealing to. For instance, is the location near a university? In the centre of a busy city? Or in a quiet rural village? Each location will appeal to a different kind of tenant. Therefore you should keep this in mind when making changes to the property after purchase.
For student tenants, there may be an opportunity to add an extra bedroom which could maximise your profit. Whereas with a single business tenant, you may want to turn one of the rooms into a study and also run a minimalist theme throughout. Carry out market research to determine the best ways to attract your ideal tenants as there are small changes that can really make a difference to someone signing on the dotted line.
Sign up for the Landlord Deposit Scheme
Any deposit for a rental property must now be protected, but this is far easier to sort out than it originally sounds. You can simply contact a registered third party such as Deposit Protection Service, MyDeposits and Tenancy Deposit Scheme. You have 30 days from when you received the tenants deposit to put the deposit into the scheme.
If at the end of the tenancy agreement there are any unpaid bills or months of rent, damage has been done to the property or if terms of the agreement have not been adhered to, then you can apply to claim some or all of the deposit. You must apply to the scheme with evidence of any of these issues if you want to keep some of the deposit.
Insure to be Sure
Insuring your property is essential, whether you are renting or not. A building insurance policy should be taken out in case of any damage to the property from weather conditions for instance. You should also take out contents insurance for the items you provide for the tenants and a policy which gives you unoccupied property insurance. If the property is vacant for more than 30 consecutive days, unoccupied property insurance will cover you for fires, vandalism and also if squatters are present.
Be Careful not to Slack
When you first take on the property you may wish to make some changes both internally and externally. Once these have been completed, you should carry out an inventory before the tenants move in. Present them with this so that they have a copy and make sure that they sign it. This must have every mark that is throughout the property and if there are any issues such as holes or stains these must be noted too. When the tenants then move out, you can prove that the marks or damage that they have caused was not there before they moved in. Also, keep an eye on the property and tenants to make sure that your agreement is being adhered to from time to time.
This post was written by Amy Bennett who has recently invested in her first rental property. While she renovates the property to be ready in a few months she has taken out unoccupied property insurance from CIA Landlords Insurance. They offered her a great price and a friendly service.