Many people agree that renting out your property enables a sense of freedom as it gives you a chance to move on at a time when selling has become a challenge. This is mainly because it allows you to efficiently move and rent elsewhere or even buy another property without having to sell your own. However, it also can place a lot of responsibility in to your life as you will be a landlord.
It is a good idea to start with gaining your mortgage leaders consent to let your property as failure to do this is seen as breaching the terms and conditions of your home loan. If you are arranging to keep your mortgage in its current state, and rent out your property on a temporary basis so that you can relocate and rent a home elsewhere, then a lot of lenders are may be happy to oblige by this.
A common question people might ask is whether need a letting agent or not. You do not necessarily need one as you can let your property privately, however you may want to consider it as it does have numerous advantages. For example, they will organise viewings for you and market the property. They would also get references from your tenants and even produce the tenancy agreement for you. You can choose between different levels of service and depending on which one you choose they will manage your property and take care of any maintenance issues, dealing directly with the tenant so that you do not need to get involved.
Some may consider using a letting agent as during this time they are very useful as they will market the property for you and arrange viewings and organise references from your tenant as well as drawing up a tenancy agreement for you. They will also take care of the property and deal with any maintenance issues, directly dealing with the tenant on your behalf however this can depend on the level of service you request. As well as doing this, they will manage rent payments and tax their fee. These are dependent on the property, the market and the locations which means it can vary. You should expect to pay at least 10% of the rent you receive in fees and if you choose a full management service this will change to 15%. It is a good idea to make sure that your agent is a member of a recognised organisation such as the National Association of Estate Agents or the Association of Residential Letting Agents etc.
An estimate for the amount of rent to charge will be given by your letting agent. It is expected that the tenant will try to negotiate a lower price, therefore it is important to be cautious as your mortgage payments are sizeable and your margins close. You should remember that when the market is hectic with rental properties, rental prices can drop. Having a substantial financial buffer in place is crucial just in case you need to cover a void or if there is a time when the property is empty between tenants. You should be aware of the rental and mortgage payments and be sure that you would be able to meet these payments as well as the one you are letting out. The responsibility of the upkeep of the property is in your hands, so you have to think of the costs that this may entail such as replacing a boiler.
There has been a change in the law since April 2007 which prevents landlords from being unfair to their tenants. It states that your tenant's deposit must be kept in a government authorised tenancy deposit protection scheme which will be held there until the tenancy ends in which it will be returned providing that the tenant has kept your property in good condition.
It is a good idea to start with gaining your mortgage leaders consent to let your property as failure to do this is seen as breaching the terms and conditions of your home loan. If you are arranging to keep your mortgage in its current state, and rent out your property on a temporary basis so that you can relocate and rent a home elsewhere, then a lot of lenders are may be happy to oblige by this.
A common question people might ask is whether need a letting agent or not. You do not necessarily need one as you can let your property privately, however you may want to consider it as it does have numerous advantages. For example, they will organise viewings for you and market the property. They would also get references from your tenants and even produce the tenancy agreement for you. You can choose between different levels of service and depending on which one you choose they will manage your property and take care of any maintenance issues, dealing directly with the tenant so that you do not need to get involved.
Some may consider using a letting agent as during this time they are very useful as they will market the property for you and arrange viewings and organise references from your tenant as well as drawing up a tenancy agreement for you. They will also take care of the property and deal with any maintenance issues, directly dealing with the tenant on your behalf however this can depend on the level of service you request. As well as doing this, they will manage rent payments and tax their fee. These are dependent on the property, the market and the locations which means it can vary. You should expect to pay at least 10% of the rent you receive in fees and if you choose a full management service this will change to 15%. It is a good idea to make sure that your agent is a member of a recognised organisation such as the National Association of Estate Agents or the Association of Residential Letting Agents etc.
An estimate for the amount of rent to charge will be given by your letting agent. It is expected that the tenant will try to negotiate a lower price, therefore it is important to be cautious as your mortgage payments are sizeable and your margins close. You should remember that when the market is hectic with rental properties, rental prices can drop. Having a substantial financial buffer in place is crucial just in case you need to cover a void or if there is a time when the property is empty between tenants. You should be aware of the rental and mortgage payments and be sure that you would be able to meet these payments as well as the one you are letting out. The responsibility of the upkeep of the property is in your hands, so you have to think of the costs that this may entail such as replacing a boiler.
There has been a change in the law since April 2007 which prevents landlords from being unfair to their tenants. It states that your tenant's deposit must be kept in a government authorised tenancy deposit protection scheme which will be held there until the tenancy ends in which it will be returned providing that the tenant has kept your property in good condition.
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