5 steps to letting your Property
1. Obtain permission from appropriate parties:-
• Mortgage Company:
If you have a standard residential mortgage you will need to request permission to let from the mortgage company - they usually make a small charge for this and may place some restrictions on the types of tenant or tenancy details.
• Leaseholder:
If you own a leasehold property you may also need to inform the Headlease holder that the property will be let and check the lease for any restrictions.
• Insurance Company:
You will need to maintain building insurance cover and must inform the policy holder that the property will be let.
2. Make sure the property is safe and legally compliant:-
• Gas Appliances:
You will need to ensure you have a valid Gas Safety Certificate, which must be issued to the tenants before they move in and on an annual basis thereafter. A Corgi registered plumber must be contracted to carry out the safety check. The boiler and gas appliances should also be serviced regularly to ensure they remain safe.
• Electrical Equipment:
All electrical systems and appliance must also be safe. The only way to ensure this is to have a full safety check of the system and fittings. An annual Portable Appliance Test (PAT) is also recommended for all furnished properties. The tests and any electrical maintenance work must be carried out by a qualified electrician. • Furniture:
All soft furnishings, such as sofas and beds, in rental property must comply with the Fire and Furnishing Safety Regulations.
• Smoke & Carbon Monoxide Alarms:
All properties built after X must have a smoke alarms fitted. It is highly recommended that any rental property should have at least one alarm on each floor regardless of age. A Carbon Monoxide alarm should also be considered.
• Energy Performance Certificate (EPC):-
Since October 2008, all properties advertised to let, must have an EPC. An EPC can be issued by a Domestic Energy Assessor and the certificate lasts for 10 years. A copy should be given to any one considering renting the property.
3. Presentation, Presentation, Presentation:-
There is usually a large choice of properties for prospective tenants and good presentation will give your property the edge over the competition as well as helping to achieve the best rental price.
• Clean and tidy:
Tenants will be more inclined to keep the property in good condition if it was in that condition when they moved in. It is also easier to record and prove the condition of the property if it is perfect at the start.
• Décor:
Do not be afraid to use some colour, there are hundreds of bland magnolia walls in properties these days!...but avoid a lot of "loud" or dark colours on walls. A slightly darker carpet will show less marks than a very light one. Consider laminate in the walkways (unless in a flat!) and lino for Kitchens and bathrooms.
• Does everything work?:-
To avoid problems once the tenant moves in, check heating and water systems work and all appliances are in good working order. It helps to leave a set of instructions and appliance manuals for these items, even if they are hand written.
4. Furnished or unfurnished?
Furnished properties command a slightly higher premium than unfurnished but the main advantage is that there are usually less furnished properties available.
Unfurnished properties are normally supplied with the Kitchen white goods.
If you decide to furnish the property, consider:
• Furnish in keeping with the period of the property. • Good quality, hard wearing, easy to clean furniture. • Check it is fire and safety compliant. • Expect slightly more wear and tear than in an unfurnished property. • Electrical items are the main things to go wrong (and need testing annually), therefore avoid supplying unless going for maximum rental value.
5. Rental guarantee and legal expenses insurance
With the current economic climate meaning more people are getting into financial difficulty, it is worth considering some insurance to protect you from the unexpected. Although tenants are normally credit and referenced checked, these checks are a snap shot in time and there is no way of knowing if your tenant will be made redundant or get divorced and suddenly stop paying the rent.
6. …and finally - employ a good Letting Agent:
Look for:
• A professional agent (member of NALS, ARLA, OEA). • Competitive fees - look out for those hidden extra charges! • Proactive approach and extensive internet marketing.
Steve is Director of Martin Property Management - a letting agency based in Kenilworth, Warwickshire.
Contact at: www.martinproperty.co.uk
