What Do I Need To Know Before Renting Out My Home?
Navigating the world of rental management can be a strange, and overwhelming, experience for many first-time landlords. In Leicester, there are a huge number of students and young families, making it a popular area for landlords. But what should all these new landlords understand before they venture into the rental market? We’ve listed some of the top things you should know before renting out your home or choosing a letting agent in Leicester.
How Much Rent To Charge
If you’re new to the market, you may have no idea about the going rate for a property of your size and specification. Try looking at similar properties in your area, or asking your letting agent. Estate agents in Leicester should have a portfolio of similar properties in the area and be able to advise on the going rate. Don’t forget to take into consideration things like renovation, house extensions, loft conversions and other features that may allow you to charge a higher rate.
Whether You Have The Correct Insurance
You’ll need some insurance policies as a landlord. These are different policies from the insurance you have as a homeowner. Additional insurance is recommended for non-payment of rent, any damage to your property by the tenant and any liability for accidents that may occur on your property. Your estate agents will be able to advise on this but it’s worth shopping around on the market to ensure you’re getting the best deal.
How To Draw Up The Right Lease
You and your tenants both need to understand your individual obligations and exactly what is expected during the tenancy. Your lease will contain a number of key points including pet policies, security deposit, rental due date, eviction terms and routine upkeep. If you have a dedicated letting agent they’ll be able to draw this lease up for you but as the property owner, you can insist on certain stipulations being included.
There’s A Lot Of Admin
Being a landlord isn’t as simple as putting your home up for rent and reaping the benefits of extra income. There’s a huge amount of paperwork and administration involved. That’s why most landlords choose to use the services of a letting agent.
You’ll Need To Find The Perfect Management Company
A property management company will save you time and money when it comes to finding, booking and handling tenants. They can cover all aspects of the rental process for you and can be the face of the entire process – allowing you to remain removed from the process.
The Eviction Process
It may not be something you want to think about but you need to know your rights and the legal process when it comes to evictions. As frustrating as it may seem, if a tenant refuses to pay rent you’ll need to take them to court rather than simply kicking them out. You’ll need to pay legal fees, which can be costly – so make sure you take this into consideration.
You’ll Need Some Money Set Aside For Repairs
As a homeowner, you can pick and choose which broken features to repair or leave but as a landlord, you don’t have that luxury. Tenants will expect broken utilities and house damage to be fixed, usually quite promptly. It’s worth taking the time to find trusted service providers like a plumber and electrician. You can also agree on a lump retainer with your letting agent to deal with any maintenance and repairs without having to consult you.
Think Ahead About Furniture
If you’re going to rent out your flat you’ll need to decide whether it’s furnished or unfurnished – and if you go for the latter, you’ll need to make sure you’ve removed everything from the property. If you have a house full of furniture, you’ll need to plan in advance for the removal.
You Must Inform Your Mortgage Provider
Many landlords use a buy-to-let mortgage, where they buy the property with the intention of letting it out, but for homeowners who have a standard mortgage and then decided to rent instead, the rules are slightly different. You must inform your mortgage provider, who may charge you a higher rate. Speak to your letting agent to find out the laws that apply to your situation.