If you haven’t rented out your home in Rugby before, then it can be difficult to know where to start. From ensuring the property adheres to the electrical safety regulations set for landlords to finding the right tenant to getting a handle on the tax implications, the vast number of tasks you need to complete can be overwhelming.
However, there is a way to make the process simpler and less stressful.
5 Steps to Renting Out Your House
All you need to do is follow the steps below to rent out your home, and you will be receiving your first month’s rent in no time!
1. Research the market
Renting out your home in Rugby is different to buying a property specifically to let, as you have most likely spent a significant amount of time and money making your property as homely and attractive as possible. Therefore, it is not uncommon for homeowners to set the rent too high when marketing their property with a buy-to-let mortgage.
That is why it is important that you find out how much similar properties in the area are being let out for per month and ask for advice from a letting agent. It is also a good idea to work out what type of tenant will be likely to want to rent your property - students, families or single professionals.
2. Be aware of the financial commitment
Many first-time landlords go into the process believing that it is the easiest way to make money fast. However, they do not take into consideration the ongoing financial costs associated with renting out your home. As well as paying tax on your rental income, letting agent fees and any legal fees, you will also be responsible for ongoing maintenance and repairs to the property, not to mention rent insurance, buildings insurance, and any fees for the local council.
These may include:
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Exterior repairs
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Installation maintenance
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General decorating
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Repairing or replacing of white goods
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Boiler servicing
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General wear and tear
It is advisable to have a list of reputable and trustworthy tradesmen that you can call for any maintenance jobs that you are unable to carry out yourself or for cases of emergency that you are unable to attend to.
3. Provide a blank canvas
Firstly, you need to decide if you are going to rent your home out furnished or unfurnished. This will be dependent on whether or not you have a need for your furniture in your new home, as well as what your specific demographic of renters will prefer. If you are planning to rent your property as unfurnished, then you will potentially need to look into storage options for any furniture you do not require in your new home.
Once you have decided which pieces of furniture you are going to leave in your property, you should then create an accurate property inventory so that you can avoid any potential disputes over damages.
As a general rule, it is advisable to keep the colour scheme in your rental property as neutral as possible to appeal to the widest variety of potential tenants. You should also clear your home of any clutter and personal belongings that may make the property feel less spacious.
4. Prepare for becoming a landlord
As the saying goes “with great power comes great responsibility”, and never a truer statement has been said concerning becoming a landlord for the first time! Not only should you be prepared for the influx of calls that you may receive from your tenants, but you also need to make sure you are informed about all your legal requirements as a landlord, from holding deposits to insurance.
These include:
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Checking your mortgage allows you to rent out your home
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Ensuring your property is fit for occupancy
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Arranging an electrical installation condition report
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Arranging a yearly gas safety check
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Ensuring your property has an Energy Performance Certificate
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Installing smoke alarms and CO alarms
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Carrying out right-to-rent checks on prospective tenants
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Protecting tenants’ deposits with a TDP
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Paying income tax if required
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Getting residential landlord insurance
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Getting rent indemnity insurance
5. Consider hiring a letting agent
Of course, you are under no obligation to hire a letting agent to help you rent out your home, but there are many benefits in working with a property management and letting agent like Horts. These include:
- Marketing your property for you
- Showing prospective tenants around your home
- Drawing up a tenancy agreement for you
- Dealing with your tenants directly if you do not want to
- Dealing with paperwork and deposits
Hiring a letting agent is a good idea if you are either inexperienced in renting out properties or if you simply do not have the time or inclination to learn all of the processes involved.
An agent will also be able to offer you invaluable advice and experience, meaning you are less likely to incur costly mistakes along the way.
Having started as a pure estate agency business back in 1996, Horts is now proud to offer the same great service standards to those wishing to rent their property. Our senior letting staff are all members of ARLA (Association of Residential Lettings Agents) and attend regular courses and meetings to ensure they are always up to speed.
For no-obligation advice on renting out your home in Rugby please contact our expert lettings team at Horts on 01788 550044 or call in and see us.
Frequently Asked Questions About Rental Properties and Legal Responsibilities
Is it necessary to check if my residential mortgage allows me to rent out my property?
Yes, it's crucial to verify whether your residential mortgage permits renting out your property. Violating mortgage terms can have serious consequences, so consult with your lender to ensure compliance.
How can short-term rental apps impact my property management strategy?
Short-term rental apps can offer flexibility but may also pose challenges. Ensure your property adheres to local regulations, and consider the implications on your rental approach, especially if dealing with multiple occupation scenarios.
Are there specific considerations for landlords managing multiple occupation properties?
Yes, landlords handling multiple occupation properties must be aware of additional regulations and safety requirements. This includes obtaining the necessary licenses and ensuring the property meets the standards for shared living spaces.
Should I explore residential mortgages for short-term rental properties?
When considering short-term rentals, exploring residential mortgages tailored for such purposes is advisable. These mortgages may offer terms that align better with the dynamics of short-term rental income.
