All You Need To Know About Residential Letting Process

All You Need To Know About Residential Letting Process

Many people have considered renting out their property or properties to get that needed extra income to help make ends meet. What stops them from doing so is the process they have to go through to get that extra income.

Learning and mastering the process will make sure you can tap into the lucrative rental income, so many people are receiving today. In fact, rent prices are forecast to go up by 15% over the next 5 years.

That should be incentive enough to learn all about the rental process.

Things To Keep In Mind Before Renting A House

The first thing to keep in mind is that letting out your property is filled with decisions. You need to choose if you are going to let it yourself or hire a letting agent. If the latter, then you need to choose the best agency possible.

Then your next decision will be what type of rental you will use. There are short-term and long-term options, and you need to decide which one best meets your plans.

After that, you need to keep the different letting laws in mind. Not only does your property have to meet those laws, but how you handle your rent and taxes must be in line with the laws. This is not everyone’s cup of tea.

Plus, rental laws change all the time. You need to keep up with those changes; for example, most extra fees are banned, and if you charge a banned fee, you could be in some legal hot water.

On top of that, you need to make sure your property is in top condition, you have an Energy Performance Certificate, and all electrical is wired correctly. That is just the start; there are a lot of details you need to keep in mind when you are planning on renting your property.

You should be aware that there is a cap on the amount of deposit you can charge; plus, you need to make sure your prospective tenant has the legal right to rent your property. There is a lot of paperwork involved.

Rent House Problems

There are many problems that come with renting your home to others. Here are a few of those problems you may or will encounter:

1. Finding The Right Tenant- Not just that they have a legal right to rent your home but that they are good tenants and won’t damage it. Not to mention finding those tenants that pay their rent on time.

2. Legal Obligations- There are a lot of them to meet, but if you join a landlord association, you can get free legal advice on how to meet those obligations. One legal obligation example is when you collect your tenant’s deposit, you must keep the money in one of the government’s approved tenancy deposit schemes.

3. Property Repair & Maintenance- Things break, and you need to be ready to fix different property problems. Either you can fix them, or you hire someone to do the work.

4. Heating Issues- Every home seems to have a different heating system, and they all work differently. You will have to find a way to instruct the tenants on how to use the heating system in your home.

5. Loss Of Hot Water- The same as the heating, you need to show your tenants how to use the hot water system in your home, or you may be getting some angry phone calls about cold water coming out of the shower head.

6. Proper Housing Ventilation- Mould and mildew can be a health hazard, and you need to make sure your house is properly ventilated so mould and mildew do not grow. Making sure your home is well-ventilated is a problem you need to solve.

7. Protecting Your Property- While most tenants do take care of the property they rent, it is still a wise idea to take photos of everything. Make an inventory of items that are left in and around the property, take their photos, and have the tenant sign a document that they have seen the photos and know the condition of your items.

Having this documentation helps you pay for any repairs or clean-up from the deposit when your tenants move out.

Renting Your Property Process

At this point, you have made most of your decisions. You decided to let the property yourself, and there are some basic things you need to do. The first is to make sure the property looks neat and tidy, and the rooms look airy and well-lit.

Then you start marketing your property through different outlets, including social media. Make sure you have a professional photographer take the pictures for those ads.

Once you start getting inquiries, you can start to vet the prospective tenants, confirm their identity and make sure they have a legal right to rent your property.

Once they have passed the screening process, you can schedule a time for them to visit. If they make an offer, you are not legally obligated to take the first one sent your way. You can pick and choose which offer you will accept.

Once you have accepted an offer, agree to the rent and how it is to be paid, read and sign the Tenancy Agreement, agree on a moving day, and collect the proper rent and deposit amounts.

If you choose to use a letting agent, then all of this is done by him or her.

Some Final Words

Becoming a landlord can be a lot of work. There are so many legalities that you need to meet. This process can be overwhelming to most people. However, you do not have to go it alone. Just give our company a call.

We have over 10 years of letting experience, and we will be glad to step in and help rent your property for you. We take the burden so you can relax and enjoy that new rental income.