Letting out a property can be a great way to earn extra income, but it’s not a decision that should be taken lightly. There are many things to consider before letting your property, and it’s important to understand the risks and responsibilities that come with being a landlord.
Here are seven things to consider before letting your property, as recommended by us as mortgage advisers:
Your Financial Situation
Before deciding to let your property, it’s important to consider your financial situation. You’ll need to have enough funds to cover any mortgage payments, repairs, and other expenses that come with being a landlord. It’s important to have a clear understanding of the costs involved in letting your property and how much income you can expect to generate.
Your Legal Obligations
As a landlord, you’ll have legal obligations to your tenants. These may include providing a safe and habitable living environment, carrying out regular safety checks, and protecting your tenant’s deposit in a government-approved scheme. It’s important to familiarise yourself with your legal obligations before letting your property.
The Rental Market
Before letting your property, it’s important to research the local rental market. This will give you an idea of the demand for rental properties in your area, the average rent prices, and the types of properties that are in demand. This information will help you set a fair rental price and attract suitable tenants. Rightmove and Zoopla both provide interesting statistics and insights about the rental market.
The Condition of Your Property
It’s important to ensure that your property is in good condition before letting it out. This may include carrying out any necessary repairs and maintenance, ensuring that appliances are in good working order, and ensuring that the property is clean and presentable. A property in good condition is more likely to attract quality tenants and generate higher rental income.
Tenant Screening
It’s important to thoroughly screen potential tenants before letting your property. This may include checking their credit history, employment status, and references from previous landlords. A thorough screening process can help you avoid problem tenants and ensure that you find suitable tenants who will take good care of your property.
Property Management
As a landlord, you’ll have to manage your property and deal with any issues that arise. This may include responding to maintenance requests, collecting rent payments, and dealing with any disputes that arise. If you don’t have the time or experience to manage your property, it may be worth considering hiring a professional property management company.
Insurance
It’s important to ensure that you have the right insurance in place before letting your property. This may include landlord insurance, which can cover you for any damage caused by tenants, and liability insurance, which can cover you in case a tenant is injured on your property. It’s important to speak to an insurance provider to ensure that you have the right cover in place.
Letting your property can be a great way to earn extra income, but it’s important to consider the risks and responsibilities that come with being a landlord. By considering these seven factors before letting your property, you’ll be better equipped to make an informed decision and manage your property effectively.
Remember to seek advice from mortgage adviser, like us and other professionals to ensure that you’re fully prepared for the responsibilities of being a landlord.
If you are interested in discussing buy-to-let mortgages options available to you, then please get in touch.
Please note: The Financial Conduct Authority does not regulate Buy to Let Mortgages. Your home maybe repossessed if you do not keep up repayments on your mortgage.