Want to rent out a property? Then there are a number of things you should do to safeguard your investment.
Insurance in place
Ensure you have the right insurance in place. If you’ve been living in the property until recently, you’ll need to update your cover and take out landlords insurance instead. Give the detail of the policy close attention before you sign up, and make certain it includes liability insurance – to give you peace of mind. Speak to your mortgage provider too, as you may need to change your mortgage agreement.
Meet your obligations
Also, to protect your investment, ensure you’ve met all of your obligations as a landlord. This is especially important when it comes to health and safety considerations, like certifying you have safe gas and electrical appliances for example.
References a must
When choosing your tenants do check out references beforehand. Don’t cut corners on this sort of preparative work, or it could cost you money and time in the long term. Be thorough when it comes to checking their record with previous landlords.
Have a written agreement between yourself and your tenant, so you are all singing from the same hymn sheet. That way your expectations will be clear from the start. It’s also important that this agreement takes the form of an assured shorthold tenancy. The latter is usually for at least six months and guarantees the return of the property to you at the end of the tenancy. This agreement should be signed by both yourself and the tenant.
You can ask for a deposit as part of your tenancy agreement, to help protect your investment in the case of loss or damage, but you will need to protect it for the tenant. You must put the deposit in a tenancy deposit protection scheme within 30 days of receiving it.
Inventory at the ready
In addition to the tenancy agreement, have an inventory prepared, which you also both sign. Such a report will usually include photos and a description of the condition of items too. A detailed inventory will help you to make a claim against the deposit should it be required, without one, your claim is not likely to be successful.
Robust legal advice
When drafting the agreement, do seek competent legal advice. In fact, if you are new to renting out property, then it would be a good idea to consult with your legal counsel beforehand, so you understand all of your responsibilities as a landlord too. However, there is also lots of advice online to help you too.
Consider an agency
If you want to take the weight off your shoulders, then consider engaging the services of an agency to manage the letting for you. A reputable property management company will have rigorous procedures in place for vetting tenants and will be proficient at marketing properties. Most of all, employing an agency will take the hassle out of your rental venture. Moreover, if you are still searching for a property to invest in, some will help you with your search too. For a high-end property, enlist the assistance of Icon Property, they’ll help you find the right investment.
So there you have a few factors to consider when looking to safeguard your rental property for the future. We hope you’ll soon find the right tenant and be successfully renting out your property.