- Do the maths
Before you rent out a property you first need to make sure it makes financial sense. In essence you need to make sure that whatever you rent the property for covers the costs it needs to, for example mortgage payments.
The best way to calculate this is to try and find out what similar properties in your area are renting for and why. What features do you or they have which would make it more favourable to rent.
Don’t forget to consider any commissions you may pay if you decide to leave your property a letting agent as this will affect your net income.
- Rent privately or use a letting agent?
As discussed using a letting agent does have one negative which is that they will take a commission which will come off your net income, but they do provide plenty of other benefits.
Letting agents often have a larger market and brand awareness and will therefore help you find a tenant more easily; they will take care of all of the paperwork and searches and if you want even manage the rental.
Be sure to select a letting agent like you would a tenant. Try and speak to other landlords and get feedback on their service. The best letting agents won’t be the cheapest, but they won’t be the most expensive either.
As a landlord you will require different insurances than you will as a homeowner. When getting quotes you will need to ask for landlords buildings (and potentially contents) insurance. It is vital not to skimp on these as you do not know what might happen while there are tenants in your home.
You may also want to consider insurances should your tenants default on their rent. This can be avoided with thorough background checks, but should your tenant be left jobless you do not want to be penalised because of it.
You will also be required to have gas safety and fire safety certificates to ensure that all of your homes appliances and electrics are safe to use. These will avoid you being sued should anything unforeseen happen.
There are lots of things to consider as a landlord, but these should send you well on your way to considering whether it is something you want to do or not.
Bannisters Property Management and Letting Agenst help landlords to get their properties rented. For more information, please visit their website: Bicester Property Management