Search the listings
HOW TO LET YOUR PROPERTY
There are various circumstances in which letting out your property, or part of it, will suit your current needs. It may be that you have inherited a property you do not immediately want to sell. Maybe you have a second home that is not being fully utilised and could make you some money from rental. Perhaps you have been posted abroad in your work and want someone to sit in the property while you are away. Or maybe you want to let a room in your property while you are also living there to generate some extra cash and help pay the mortgage.
Your Responsibilities as a Landlord
Before a letting agent will begin to act on your behalf, you must normally enter into a legally binding agreement which places a number of responsibilities on you.These will include:
Landlords must ensure the safety and maintenance of rented property and their contents so that no injury or damage is caused to the occupants, neighbours or the public. Fulfilling your responsibilities as a landlord during a tenancy can be very time consuming, so you could consider employing a property management company to fulfil these duties on your behalf.
Under the Landlord and Tenant Act 1985, you have three main areas of responsibility when your property is let under an assured shorthold tenancy:
Landlords are obligated to keep the structure and exterior of the property in good repair. Tenants must not be charged separately for this work although provision for the cost can be incorporated in the rental price. They are responsible for ensuring that the following items and areas are safe and fit for use, as well as making repairs where necessary. * The structure and exterior of the property. * Hot water installations, as well as the supply of water itself. * Basins, sinks, baths and other sanitary or drainage installations. * Ensuring an adequate provision of lighting, heating and ventilation. * The treatment of any health-threatening damp. * Anything else that you mutually agree with the tenant in the tenancy agreement.
You or your agent are allowed access to the property for two main purposes, both of which are usually detailed in the tenancy agreement.
These are to conduct visual reports in order to monitor its condition and ensure that tenants are abiding by the terms of their agreement and to show the property to prospective tenants when the current tenants are moving out. In both cases, 24 hours' notice to tenants is usually required.
Under the Rent Act of 1977, you have the right to seek possession of your property under any of 17 assorted legal grounds. You cannot evict the tenant without a possession order from the court.
Let To Buy
Let to buy is a relatively new phenomenon where you buy a new home and let your old one. As long as the rental income on your existing property will pay your old mortgage, lenders who offer this type of loan will usually offer you a mortgage for the new property based on the normal income multiples, even though you already have an existing property. This means that you end up with two mortgages at normal owner-occupier rates, therefore avoiding the slightly more expensive buy-to-let mortgages.
This is worth investigating if you are downsizing or if you want to move away from an area for a period of time, but not give up the property. It may be a home that has been in the family for a long time, or you may have a particular affinity for an area. You no longer want to live in the property, but nor do you want to lose it for good, either. In such circumstances let to buy can be a good option. You get the benefit of retaining your asset, whilst someone else pays the mortgage for you, as well as having money left over.
Buy To Let
An increasingly popular investment where you buy a property specifically to let it to other people such as students, key workers and people who either don't want the responsibility of owning their own home or who cannot afford it.
Buy to let requires special knowledge of the marketplace, mortgage products and insurance options that are open to you. A property investment adviser can help you arrange your mortgage, explain and discuss the different choices you face and how suitable they are for you, get quotations and push through the fulfilment on your behalf. Having someone take care of your mortgage application for you, filling out all the forms, liaising with the lender and going on to complete the process, can be a real relief for some people.
Whatever your objectives (to receive an income, invest for the future), the success of residential property investment depends on consistent high demand from tenants and maximisation of possible rental yields Choose your buy to let property with care, taking the time to research and understand the local demand characteristics and how the market is likely to change over time. You must ensure that your property is in the right location for your target market and furnished to a standard that is more than adequate for the type of tenant you are looking to serve.
Always look at the investment through the eyes of a local lettings agent to assess suitability, even if you live locally to the area in which you are considering buying an investment property. They will help advise on the property type, location, decoration, furnishing, fixtures and fittings that will be required by prospective tenants. Remember that buying an investment property is a business proposition, so you should not let your personal tastes cloud your judgement.
Tenants that are disrespectful to your property and leave it like a rubbish tip, contractors that do shoddy work an overcharge you for it, lots of paperwork, stress, huge time demands, all sorts of insurance expenses and no small amount of risk. Buying a property to let has the potential to include all of these problems as part of the package, so it is definitely not for everyone.
Over the long term, property is almost always an improving asset. Unless you buy at an overly inflated price, let the place fall into disrepair, or some kind of disaster besets the structure. Then you should eventually end up with an asset worth considerably more than you paid for it.
If you decide to invest in a property for letting purposes, you should consider the following points which will help you maximise your income:
If you choose your property and your tenants carefully, you are most of the way towards becoming a successful landlord.
We recommended that you leave only minimum furnishings and these should be of reasonable quality. It is preferable that items to be left are in the property during viewings. Unfurnished We recommend that the property contains: Carpets, curtains, and a cooker. Furnished We recommend that the property contains: Lounge â€“ 3 piece suite, TV unit Kitchen â€“ Cooker, fridge freezer, washing machine, kettle, crockery, cutlery, pots & pans. Dining Room â€“ Dining table and chairs Bedroom/s â€“ Bed, chest of drawers and wardrobe. Miscellaneous â€“ Lampshades, iron, iron board, vacuum cleaner, dust pan and brush, mop and bucket, garden tools, carpets & curtains. Due to hygeine reasons we recommend that no bedding or towels are left in property.
© 2008 copyright forz