Renting and letting out your first property
Introduction The present recession has forced many unlucky people into rental accommodation. So investing a 'house to let' is possibly a very good time, that's if you have the money to invest. A lot of people consider buying a house to let, this article though is about some of considerations you should be thinking about before making those first steps.
Finding the right house. It is possible to hand over all the 'buy to let' process to property management company, but some of the fun is finding one for yourself. Finding the right house though really is down to you, depends how much you want to be involved.
Some of my advice would include: Is the area a common place for renting , i.e students ? If you did need to sell the house quickly, could you ? Is the house right for renting ? meaning does it have expensive fittings that would cost a lot to replace if broken. Does the house need renovation before you could start renting it out, is it ready to go ? People renting are not looking for a place forever, it is properly a stop gap for while.
Should I engage a property management company ? My advice would be unless you really comfortable with the idea or have experience of handling the public then consider a property management company. The property management company can deal with all the awkward side of tenants and you collect the money. Now you maybe thinking how hard can it be ? Surely renting out a house is just a case of keeping one eye on the property and make sure the rent gets paid. Depends on what deal you strike but think carefully before proceeding.
A good company should offer the services shown here: Collection of rent each month Inspections (reports on request) Regular Contact and Updates Service of Notices Initial rental valuation Arrange safety checks Accompany viewings Check References Estimates for repairs and refurbishment Insurance claims dealt with Receipt of Damage Deposit in cleared funds Final Inspection at the end Tenancy Agreement
Yes you might lose a small amount of money, but just one of the above could potentially take a lot of your time.
Things you have to do, some are lawful requirements and some aren't ? As of October 2008 all buildings, whenever they are built, sold or rented out, will require one. Improving the energy performance of buildings - Energy Performance Certificates. The EPC provides 'A' to 'G' ratings for buildings, with 'A' being the most energy efficient and 'G' being the least, with the average to date being 'D'. The EPC is designed to bring about a series of measures being introduced across Europe to reflect legislation which will help cut buildings carbon emissions and tackle climate change.
Property Maintenance It may be necessary to carry out general repairs on your property from time to time. Maintenance problems may occur at any time, day or night and to any property. When such a repair is reported by the tenant, you or the property management company will assess the repair. Based upon the inspection, you will need to repair or get someone to repair. You don't hold all the liability of repair and you should think about this when interviewing a potential tenant.
Please remember that it is in the interest of your property, your investment, to ensure that these repairs are carried out efficiently and quickly. Lets hope repairs won't occur very often.
Buildings and Contents Insurance Are you aware that you might have inadequate Buildings and/or Contents Insurance? As you are letting your property you current insurance may be void if there were ever to be a claim. You will need an insurance which is designed for tenanted properties housing professional, working, DSS or students. The policies available may cover a full replacement value for possessions buildings, (Subject to terms and conditions of selected policy).
Gas Appliances Under the Gas Safety (Installation and Use) Regulations Act 1994, any person (Landlord) who is letting (Renting) properties must maintain all Gas Appliances and have them checked for safety by a CORGI Registered engineer or company at least once every twelve months. The records of these checks including any repairs are to be kept by the landlord or the landlords agents (which ever is carrying out the letting) for the tenants to see upon request. You are therefore legally obliged to have all the Gas Appliances in the property or properties you are letting out checked for safety and bought up to standard by a qualified engineer or company.
You should note: It is in your own interest that you ask to see copies of this certificate beforehand to ensure that they are properly qualified to carry out the checks. These requirements are by current British Law. You are therefore allowed to use any company or engineer of your choice to carry out the safety checks provided that they are CORGI registered and can provide certificates.
Summary Hopefully this article hasn't put you, if it hasn't, then you could make good money from renting out property. Make sure you get good advice from the right people, all people will have a point of view on renting, but the right advice for you is what you need.
Andrew Cambridge writes articles for Investment opportunities , as well as many other money websites. He has many articles published on the internet. What interest him about Lettings in peterborough is that so few websites offer good impartial information. - 23208
Finding the right house. It is possible to hand over all the 'buy to let' process to property management company, but some of the fun is finding one for yourself. Finding the right house though really is down to you, depends how much you want to be involved.
Some of my advice would include: Is the area a common place for renting , i.e students ? If you did need to sell the house quickly, could you ? Is the house right for renting ? meaning does it have expensive fittings that would cost a lot to replace if broken. Does the house need renovation before you could start renting it out, is it ready to go ? People renting are not looking for a place forever, it is properly a stop gap for while.
Should I engage a property management company ? My advice would be unless you really comfortable with the idea or have experience of handling the public then consider a property management company. The property management company can deal with all the awkward side of tenants and you collect the money. Now you maybe thinking how hard can it be ? Surely renting out a house is just a case of keeping one eye on the property and make sure the rent gets paid. Depends on what deal you strike but think carefully before proceeding.
A good company should offer the services shown here: Collection of rent each month Inspections (reports on request) Regular Contact and Updates Service of Notices Initial rental valuation Arrange safety checks Accompany viewings Check References Estimates for repairs and refurbishment Insurance claims dealt with Receipt of Damage Deposit in cleared funds Final Inspection at the end Tenancy Agreement
Yes you might lose a small amount of money, but just one of the above could potentially take a lot of your time.
Things you have to do, some are lawful requirements and some aren't ? As of October 2008 all buildings, whenever they are built, sold or rented out, will require one. Improving the energy performance of buildings - Energy Performance Certificates. The EPC provides 'A' to 'G' ratings for buildings, with 'A' being the most energy efficient and 'G' being the least, with the average to date being 'D'. The EPC is designed to bring about a series of measures being introduced across Europe to reflect legislation which will help cut buildings carbon emissions and tackle climate change.
Property Maintenance It may be necessary to carry out general repairs on your property from time to time. Maintenance problems may occur at any time, day or night and to any property. When such a repair is reported by the tenant, you or the property management company will assess the repair. Based upon the inspection, you will need to repair or get someone to repair. You don't hold all the liability of repair and you should think about this when interviewing a potential tenant.
Please remember that it is in the interest of your property, your investment, to ensure that these repairs are carried out efficiently and quickly. Lets hope repairs won't occur very often.
Buildings and Contents Insurance Are you aware that you might have inadequate Buildings and/or Contents Insurance? As you are letting your property you current insurance may be void if there were ever to be a claim. You will need an insurance which is designed for tenanted properties housing professional, working, DSS or students. The policies available may cover a full replacement value for possessions buildings, (Subject to terms and conditions of selected policy).
Gas Appliances Under the Gas Safety (Installation and Use) Regulations Act 1994, any person (Landlord) who is letting (Renting) properties must maintain all Gas Appliances and have them checked for safety by a CORGI Registered engineer or company at least once every twelve months. The records of these checks including any repairs are to be kept by the landlord or the landlords agents (which ever is carrying out the letting) for the tenants to see upon request. You are therefore legally obliged to have all the Gas Appliances in the property or properties you are letting out checked for safety and bought up to standard by a qualified engineer or company.
You should note: It is in your own interest that you ask to see copies of this certificate beforehand to ensure that they are properly qualified to carry out the checks. These requirements are by current British Law. You are therefore allowed to use any company or engineer of your choice to carry out the safety checks provided that they are CORGI registered and can provide certificates.
Summary Hopefully this article hasn't put you, if it hasn't, then you could make good money from renting out property. Make sure you get good advice from the right people, all people will have a point of view on renting, but the right advice for you is what you need.
Andrew Cambridge writes articles for Investment opportunities , as well as many other money websites. He has many articles published on the internet. What interest him about Lettings in peterborough is that so few websites offer good impartial information. - 23208
About the Author:
Andrew Sutton writes articles for Investment opportunities , as well as many other money websites. He has many articles published on the internet. What interest him about Lettings in peterborough is that so few websites offer good impartial information.
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