To assure would-be Buy To Let Investors or Owner Occupiers simply looking to make the important decision of placing your home up to Rent, the Great News is that it's a landlord's Market!
In short, this is a Comprehensive but Concise Guide for Landlords, who wish to avoid the risks involved in renting out a property.
The residential lettings market is the strongest it's ever been! In the current economic climate renting is seen as a preferred investment for many people. However, the modern landlord frequently lacks the experience, knowledge and time needed to deal efficiently with their properties and tenants. We have provided some useful information to help equip you with the key points you need to know about buying, preparing and letting a Suitable Investment Property.
Successful landlords know the letting process like the back of their hand, but they're not born as ‘Knowledgeable Landlords', they've learnt from experience. However you don't need to be an expert to make the letting market work for you. There's enough information available in the public domain, and specialist estate agents are trained to guide you through the letting journey from start to finish. Here's a brief summary of the letting process:
In short, this is a Comprehensive but Concise Guide for Landlords, who wish to avoid the risks involved in renting out a property.
If you are looking to buy a property in a particular location, it's important to thoroughly research the area to assess the type of tenants you are most likely to attract. This will help you identify the most suitable type of property to buy. If you have already decided on a particular type of tenant, find out where those tenants are most prevalent and buy an appropriate property in that area. If you are starting from scratch, research which areas produce the best rental yields and consult local agents for advice on the type of tenants seeking accommodation within them.
Before letting your property you must:
Make sure you comply! As a landlord letting property in England and Wales, you must comply with all current legislation. Failure to do so can lead to severe fines and in some cases imprisonment:
Gas Safety - Any gas appliances in the property must be inspected before a tenant moves in, and annually thereafter, in compliance with Gas Safety (Installation and Use) Regulations 1998. A Gas Safe registered engineer must carry out this inspection. Your estate agent should be able to organise this on your behalf as part of their letting service.
Electrical Safety - Electrical appliances left in the property must be tested by a qualified engineer to assess their safety in compliance with the Electrical Equipment (Safety) Regulations 1994. Again, your estate agent should be able to organise this on your behalf as part of their letting service. Link to our fully qualified electrician, T & A Electrics.
Before you let your property, you must examine all appliances and furnishings to ensure they meet the required standards. If necessary, you should repair or replace any fittings, equipment or appliances which are damaged, cracked, loose or defective to avoid injury or ill-health. The Furniture and Furnishings (Fire) (Safety) Regulations 1988 Furniture manufactured after 1988 must have the relevant safety labels attached prior to the property being let, in compliance with the 1988 regulations and their subsequent amendments.
Every property that is rented out requires an Energy Performance Certificate (EPC) by Law and this should be prepared before marketing the property. An EPC shows how energy efficient and environmentally friendly your property is on a scale of A-G, with A being the most efficient and therefore having the lowest fuel bills and making less impact on the environment through carbon dioxide (CO2) emissions. An EPC also lists measures that will improve the energy and carbon emission rating of the property. It's worth noting that investing in energy-saving measures can make your property more attractive to tenants.
Prepare an Inventory before the tenant moves in Scrutinise the contents of the property thoroughly to assess the condition of each item. Record full details including the model and serial number, as well as the manufacturer, colour, shape and size. Make a note of when all electrical and gas appliances/fittings were last inspected and log the presence of all fire safety labels and their location. Create duplicate copies of the inventory document, ensuring that there is enough space for the tenants to write their comments on the day of entry. It's also worth taking photographs of the interior and exterior of the property to record its condition. If you are short of time, it is strongly advised and beneficial to employ an independent Inventory Clerk to assist you.
By Law, the Tenant's Deposit (usually six weeks rent which can be used at the end of the tenancy to pay for any damage to the property), taken in by the agent prior to the tenants moving in must be registered by the Landlord with a recognised deposit protection scheme, in accordance with The Housing Act legislation, within 30 days. This will ensure that any disputes between you and your tenant will be easier to resolve.
Further information can be found at:
T: (0845) 226 7837 T: (0844) 472 7000 T: (0844) 980 0290