Having gone through the property buying process with its highs and the lows, you’re probably feeling exhilarated at completion stage but your journey doesn’t finish there, especially if you have decided to let!
Letting out a property at its first stages is no easy ride. With so much to think about and implement, it can be a stressful period if you are not in the know how. So here is a bite size landlord checklist or treat it as a rule book to let your property safely and legally with a marketing programme that we minimise rent free periods.
Safe and Sound
Like you would keep your home safe, landlords have a legal obligation to let properties that are safe for their tenants to live in. Non-compliant landlords can be fined or even prisoned for endangering lives so ensure the following;
- Install a smoke alarm on every floor
- Install a carbon monoxide detector in rooms which is installed with a fuel burning appliance
- You should provide your tenant with a Gas Safety certificate at the beginning of their tenancy agreement
Energy Performance Certificate (EPC)
2008 saw a new law put in place to enhance buyers and tenant’s knowledge of energy performance of the property they are showing an interest in so this is why property advertisements must show the property’s EPC rating. Tenants must be supplied with a copy of the EPC to communicate energy efficiency on their property.
Property Marketing
You may want to manage your let property yourself or let through an agent, either way ensure you find the right tenants with good advertising tactics. Agents have the marketing knowhow and a database of potential quality tenants in which you can commission them on a tenant find only service. But if you are tempted with finding your own tenants consider the following:
You may want to manage your let property yourself or let through an agent, either way ensure you find the right tenants with good advertising tactics. Agents have the marketing knowhow and a database of potential quality tenants in which you can commission them on a tenant find only service. But if you are tempted with finding your own tenants consider the following:
- Tenants first point of research is the internet and Rightmove is the first property portal people are clicking onto.
- Rightmove can be expensive so consider free listings like Gumtree as an alternative platform for marketing your property
- Ensure your advert is eye catching with strong clear pictures and your copy is easy to read and urges a call to action
Create a Tenancy Agreement
There are 2 fundamental check-ups on your potential tenants.
- Since February 2016 it has been an essential process to check if your tenants have the Right to Rent in the UK. Non-compliant landlords can face a £3k per tenant fine so it’s worth doing all their status checks.
Check your tenant’s immigration status by requesting and photo copying their original identity documents such as the following which can either be done by yourself or you can request an agent to do it for you.
- Minimise your property’s exposure to bad lets by reference checking your tenants. Consider asking proof of the following or getting an agent to do it for you
- Details of their employment, past and present
- Wages/Salary
- Bank statements
- References from previous landlords
- Credit check your tenants financial stability
Let us do all the work for you with our guaranteed rent scheme, all the areas in the blog are covered and more
Checking Your Tenants
Its best practice to have a let detailed in writing giving the tenant the legal right to live in the property and for you to receive rent from it. An Assured Shorthold Tenancy (AST) is commonly used to document the tenant’s, the landlords and property’s standard information as well as start, end and review dates. You should also include details of periodic payments and contract termination terms so it’s all clear in black and white. You can find Assured Shorthold Tenancy by searching the web but here a few of our preferred links
Landlord insurance
Ensure you have adequate cover on your property with a landlord insurance policy because you want to cover your back in the event that anything goes wrong. Damage caused by tenants, natural disasters or just accidents can be costly and that’s why you need to ensure your property is covered by the right insurance by the right value. Do consider insuring yourself against void periods when your property is vacant because you may have the financial burden of keeping up with the mortgage. Check your landlord premium at first point with Money Supermarket who have many reputable Landlord Insurance advertising with them so it will be easier for you to compare.
Tenancy Deposit Protection
Your tenants deposit is to be saved in a Government backed tenancy deposit scheme. Your registration must take place within 30 days. Consider the following schemes which are approved by the Government
Inventory
It’s crucial to take an inventory of your property before you hand over the keys to your tenant and when the tenancy ends so you know the exact contents and condition the property was handed over in and received it. It’s easy to create an inventory yourself but agents know exactly what to look out for and can minimise your losses so it’s worth commissioning them for this part to an agent who can manage your inventory so it reduces any dispute at the tenancy end
