If you have found yourself in a position where you have a property to rent out, congratulations! Getting into the property game is a sure-fire winner when it comes to investments. Whether you are renting out a flat, house, or any other kind of property, you need to make sure you’re doing it right.
There are plenty of steps to consider when renting out a property for the very first time. This will all become second nature but as it’s your first property, let’s discuss these top tips. Read on for everything you need to keep in mind when renting a property for the first time.
Prepare Your Property
The first thing you need to do, before even reaching the marketing stage, is ensuring that your property is ready to go. Sadie, a property management consultant from Faranesh tells us that “Many first-time landlords don’t spot the little things when preparing their property for the rental market.” You need to make sure everything is in tip-top condition to ensure you can get top price for your home, as well as to help you attract a nice clientele as potential tenants.
This means everything works, nothing’s peeling or falling off the walls, plumbing and electrics are sound, and there’s no damp. Make sure everything is in great condition like you would if you were going to live there, then you can move forward!
Check Health and Safety Standards
Wherever you are renting out your property, there will be various health and safety laws and standards that you have to adhere to. You will need to ensure your fire, gas, electric, and other safety standards are up to scratch, and may even be required to undertake regular checks. Your furniture and any appliances that you offer as part of the home will also have to fit within fire and other safety regulations.
Reach Out to Agents & Property Management Companies
Once your property is in top condition, as well as being safe to live in, you can start reaching out to agents and management companies. You will likely find agents who will also be the ongoing managers of the property on your behalf, usually for a percentage fee. This means you can simply vet your tenants and leave the rest to the agency for the duration of the tenancy term. This is the way most landlords work unless they prefer being hands-on with their tenants and properties.
Understand Tenancy Rights and Rules
When you rent someone a property you need to be aware of the Landlord-Tenant Law. It’s quite simple in essence, as it lays out the rules you must adhere to as a landlord. It also, of course, explains what the tenant must and must not do whilst living in your property. This set of rules help protect the property, the tenant, and the landlord for the duration of the lease term. It sets out the tenant’s privacies, the landlord’s responsibilities, and much more. Once you rent out the home it effectively becomes the tenants, so you can’t be turning up unannounced whenever you please, for example!
Deal With Deposits
When renting out a property there are risks. No matter how hard you try to avoid it, you could end up with a tenant from hell who just loves trashing the place. You could let your property out to someone who is a bit accident-prone and breaks furniture, handrails, or other annoying things. It is for this reason, amongst others, that you take a security deposit. Tenants broke things? Take it out of the deposit. Did the tenant leave without notice? Take it out of the deposit!
Take an Accurate Inventory
Finally, when agreeing on everything with your tenant, you need to make sure you take a detailed inventory. This means making notes and taking pictures of every last detail of your property before handing over the keys. All your walls, surfaces, appliances, flooring, and electrics all need to be carefully photographed, along with any furniture or drapes you may be leaving for the tenant.
This helps protect you if a situation arises where they have done damage to your property and you want to make money from their deposit. In fairness, it should protect the tenant, too, if you are trying to take more money than the damage is worth.
If you follow and understand all these tips, you will quickly feel ready to start leasing property to tenants. Make sure that the home is clean and in great condition, document it, and put it on the market. Before you know it you’ll be a fully-fledged landlord!
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