Whether it is the increased cost of moving house, the recession or the property market slump; each have equally contributed to more and more homeowners considering letting out their home rather than selling up.
It might sound straight forward to get tenants in and go and live in your motor home for a year but there are numerous things to take into account when thinking about taking the plunge. We have picked out five key factors that you must consider:
First things first, is it financially viable? Do your research and find out how much you can rent your home for and how this compares to your other costs and mortgage payments. It should be fairly easy to find out what similar properties in your area are being rented for, here at Peter Woods we can give you an idea of the rent you can hope to achieve by doing a quick assessment.
Bear in mind there will be other additional costs you may not have thought of such as maintenance, as you will be responsible for repairs and maintenance of the property during the tenancy.
2. Get us to help you
We offer 3 different levels of services for our clients:
• Let Only & Renewal
• Let, Renewal & Rent Collection
• Let, Renewal, Rent Collection & Management
We believe it’s all about building strong relationships with our clients, based on trust, proficiency and experience, and have found that over the years, our clients have become our friends. You are in good hands and we will take care of you every step of the way.
• To recognise your goals in renting your property
• To offer honest, bespoke advice on reaching this goal
• To help attain the strongest rent from the best tenant
• To build strong, long-term relationships with both our landlords and our tenants
• To provide a personal property management solution3. Speak to your mortgage lender
Tell your lender if you plan to rent out your property. Technically your lender must be told if you want to do this and the best way is to request permission to let.
Most lenders should be reasonable on this and not force you onto a buy-to-let deal on a higher rate and allow you to let out the property for at least a year or two. They may however ask for a fee for permission but make sure you find out in advance.
4. Know the Rules
Whether you are letting out your home as an investment or not you should still get familiar with buy-to-let, its financing, the tips for landlords and its rules and regulations.
This includes knowing rules and regulations include gas, fire and electrical safety requirements, Tenancy Deposit Protection, supplying an Energy Performance Certificate (EPC), using proper tenancy agreements and knowing the law on notice periods and access.
This often gets overlooked, you will need different buildings insurance as a landlord than as an owner occupier. You could also potentially need contents insurance. This is more expensive than traditional home insurance but do not skimp, it is essential to at least have your building covered.
Another good insurance policy to have is one that covers the rent if a tenant defaults and do not pay what is owed. Ring round and get some quotes as these can vary in prices quite a lot.