During the coronavirus pandemic, most people have tried all sorts of ways to make extra money. Particularly if your job was compromised during this time, it’s even more crucial to supplement your income elsewhere. For families, this can be a struggle; none of us saw this pandemic coming, so it was hard to prepare for the worst!
Renting out a property is a great way to earn money on the side of your job. If you own a property that you are looking to rent out for the first time, you probably have many questions on your mind about how this works. In this blog you’ll find the key tips you need before you begin advertising your property to rent!
1. The Necessary Paperwork
First thing’s first: the logistics of being a landlord. You will need to acquire the necessary paperwork in order to legally rent out your property to others. This includes:
- An EPC (energy performance certificate). This is an energy performance reading that must be acquired from a registered company that provides energy performance certificate services. You need this before a tenant moves in.
- Deposit protection certificates. This means that when a tenant provides a deposit before moving in, the money is entered into an official scheme that protects the money until the end of the tenancy.
- Your terms. This means providing a contract for tenants to sign that details the exact rules, regulations and payments that need to be made. The contract should detail pet allowances, smoking, the number of tenants permitted and pricing.
2. Providing A Good Standard Of Living
Next on the list is the actual property. Providing a good standard of living for tenants is an essential to being a landlord. Your property might require some updates, such as re-flooring, painting, security measures or plumbing work, before advertising it for rent. This is vital, not only to be able to raise the price of the rental, but also to avoid issues raised by tenants down the line.
3. Agency Or Private Let?
If you are renting out your home, there are two main channels by which you can do this.
Firstly, there’s using an agency. Letting agencies take a portion of your rental income, but in return, they handle:
- Tenant issues such as maintenance;
- Out of hours issues;
- Chasing up back-payments or missed rental payments;
- Assisting tenants with provider issues such as electricity or water;
- Assessing damage for deposit purposes.
This allows you to get on with your life without tenants being on the end of the phone 24/7. Your details won’t be provided to the tenant, and you are basically not involved in the process at all. Of course, you pay agency fees, but if you are a busy person this might be the option for you.
Then there’s private lets. This means you’ll be responsible for answering calls from tenants, fixing issues and providing assistance where necessary. To be a private landlord you will need to be available and on the end of the phone.
Could renting out your property be the answer to your income issues?
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