It’s always a great feeling when you have a property in your possession and can do with it as you please. Many people purchase property as a type of investment that they can draw on later in life before retirement by selling it – perhaps never intending to reside in the property at all, but rather having it purely as a rental property. There are a number of benefits to renting out your property, but there are also a number of things to remember when doing so. Read on to see the five things you should keep in mind when renting out to tenants.
Consider the responsibility required
While renting out your property can be a great way to keep the property safe, create some tax breaks for yourself or even generate an income/profit, one of the key things to consider is the responsibility involved in taking on the role of landlord. Sometimes things will go wrong – and sometimes the things that go wrong can outweigh the things that go right. Not prepared to receive potential calls at four in the morning about the heating going out in mid-winter? That’s a real possibility when renting, as is sudden expenses such as replacing a water tank, heater or glass pane for windows. This can negate any benefit to renting out a property – and in cases like these, having sufficient landlord’s insurance can help balance out some costs.
Get the space prepared for tenants
The first thing you should do before renting out the property is thoroughly clean it, replace any fixtures, light bulbs, appliances, or other bits and bobs that need replacing or fixing. If necessary you may find that a fresh coat of paint gives the place a fresh feel and is more likely to move the property for a good price. Additionally listing the property on reputable websites will help get it noticed and eventually rented. Listing with agencies can be a good idea if you don’t want to have to do the legwork yourself as they will take care of everything for you (for a fee).
Additionally it’s useful to consult lawyers and councils to ensure you’re abiding by laws that govern rental properties in your area as you may be required to fill in paperwork with them to list it as a rental property in your town or city.
Screen tenants carefully
It might not seem like something that would make a difference, but it really can. Most places require the prospective tenants to have a few references from previous landlords to prove that the tenants are trustworthy, pay their rent on time, and don’t do things such as destroy the property while they’re living there by punching through walls, excessive partying with over capacity attendees and the like. All of these things should be considered when renting out properties as they can cause issues with the neighbours in the area.
Set the best price you can
Doing a bit of market research can help you set the best price possible for your property and prospective tenants. For example, look at other properties in the same or similar area as yours and see what properties that are along the lines of yours are going for. Take into consideration the neighbourhood as well – a new property in a poorer neighbourhood in the inner city isn’t likely going to be rented out for a lot of money per month. Location is everything when setting price – as are local amenities such as shops and transport links.
Consider the future of the property
Considering the future of the property can be additionally extremely useful for renting out – for example, are you intending to want to reside back at the property in the next year or two? This is often something that people who travel a lot do – rent their home out while they’re away, only to return and reside in the property. This can be a problem with long term lets – you can’t just kick a tenant out because you’ve come back home. This is where you should consider long or shorter term lets – shorter term gives you, and the tenant, more flexibility, but additionally can be costly what with having tenants change every six months or so. This is a fairly important aspect of the property, and perhaps one people don’t often think about.
So there you have five things to keep in mind when you intend to let out your property. These things may seem pretty straightforward, but can sometimes be costly and time consuming and so are great starters to think about when you’re going to rent a property out, before you get carried away. Good luck!