Top 10 tips For Letting a Residential Property
1. Treat it like a business – You are likely to be investing over £200,000 in a property. This is a serious commitment and you must do your homework. Identify your market and ensure the property you buy is in an area that will attract your target market.
2. Proper documentation – You will need a good tenancy agreement that strikes a fair balance between landlord’s rights and the reasonable expectations of the tenant. Obtain credit checks and references where possible and parental guarantees if appropriate.
3. Take a deposit – Take a deposit for slightly more than the monthly rental. This gives you greater protection and reduces the risk of the tenants not paying the final month’s rent. It ensures that you are left with money in hand in the event of damage. All deposits must be protected by one of the Government approved Deposit Protection Schemes.
4. Have a proper inventory and schedule of condition – This will be essential in establishing what the condition of the property was at the outset of the letting.
5. Get to know your tenant – even if you use a letting agent. If the landlord is nothing more than a name on a piece of paper the tenant is likely to feel less of an obligation to look after the property than if the tenant has met the landlord and they have discussed matters of concern.
6. Provide a decent standard of accommodation –The property should be clean, free of damp and well heated. The better the state of decoration the more likely the tenant is to respect it. If problems occur deal with them promptly so that the tenant cannot use the disrepair as an excuse for withholding rent.
7. Safety – Lettings need to comply with various regulations in relation to electrical, gas and fire safety. Ensure that your property does - your insurer may not cover you if it does not.
8. Imagine living there yourself – Think about how the property could be reasonably improved or what other facilities could be provided to make the tenant’s life easier. You want your tenant to stay. The lower the turnover of tenants the less hassle for the landlord, and the less likelihood of void periods.
9. Consider service agreements – It is now possible to take out boiler maintenance contracts, and many white goods come with the option of extended warranties and guarantees. They can be cheaper than expensive emergency call-outs.
10. Take action early – If the tenant falls behind with the rent, or you believe that the tenant is not looking after your property properly, do not delay. Consult a solicitor, investigate your options and take firm but fair action.
If you would like more advice or information please contact Paul Keeling on 01392 666777 or e mail him at paulkeeling@stones-solicitors.co.uk