Many properties are let nowadays, with the proportion of UK residents renting a property instead of buying doubling in the last 20 years. House prices are continuing to soar, which can make it difficult for many young people to buy a home, and therefore they must turn to renting if they want to live independently. While this is a challenge for those who rent, it is a huge advantage for landlords. Landlords who own and let the property have an abundance of potential tenants ready and willing to rent their property.
If you are planning on letting a property, here are some top tips for doing so.
1. Get Legal Advice
First and foremost, you should organize and sort all of the legal documentation for the property, preferably with the help of a solicitor who can offer you legal advice for buy to let properties. If you are new to the buy to let market, there are many common mistakes that you could make and will want to avoid, which you can do with the help of a professional who knows the market well. Preparing the property legally before you begin to advertise it to potential tenants will help you to avoid any legal problems later down the line.
2. Renovate the Property
Rent is based on the quality of the facilities within the house, as well as other factors like its size and the location of the property. To be able to maximize the rent payment you can charge, you will need to renovate the property into top condition. A property with an outdated kitchen, non-functioning bathroom, and poorly decorated living room and bedrooms will not be able to ask for much, compared to a property that has been properly updated and fitted with working facilities. Your tenants will want to get what they are paying for.
3. Choose Tenants Carefully
The tenants you let the property to have to be carefully selected and proven to be trustworthy. If you allow untrustworthy tenants to let your property, you run the risk of damages, late payments, complaints from neighbours, and many more issues that may crop up. You reserve the right to evict unlawful tenants, but it is in your best interest to let to worthy and reliable tenants in the first place, to save you from future trouble.
4. Watch the Buy and Let Market
Many landlords own and let more than one property, and this may well be on the cards for you if you can keep an eye on the market for any trends or changes. These can include the number of people who are choosing to let instead purchasing a property, the cost of renting in certain areas, and the behaviour of the average tenant.
Letting a property is a great source of income, but it is not as effortless as many people perceive it to be. You must keep track of your tenants’ payments and treatment of the property, and it is ultimately your responsibility to update or fix the property when it needs an upgrade.