Renting your property

Things you need to consider

If you have a mortgage, the Mortgage Deed will invariably require you to obtain your Lender's consent. Be prepared for an increase in the mortgage rate. If your Property is leasehold, then the Lease may well contain restrictions and conditions.

Advise your Insurers of the changed occupation situation. Be prepared for an increase in premium.

All electrical equipment needs to be of the required standard for safety reasons.

All furniture and soft furnishings need to have certain fire resistant qualities.

All gas installation should be checked by a Corgi approved engineer, annually

You commit criminal offences by letting a Property that is unsafe.

Your advert for (and any rejection of) a Tenant must not discriminate on grounds of sex or race.

Commission and agree an independent Schedule of Condition. This will prevent arguments at a later date concerning the condition of the Property, fixtures and fittings.

Take a Deposit against breakages and certain other occurrences. Do not commit yourself to repayment until you have had enough time to assess the situation.

We have seen scratched baths and holed basins , shower trays being broken due to energetic love-making, destruction of soft furnishings by pets, burning of carpets and surfaces by cigarettes, dampness caused by water fights between children, broken windows, cutlery and crockery

Consider whether the accounts for the utilities should be in your name or the Tenant's. There are pros and cons on each. Discuss with us.

Often Tenants do not pay the last month's Rent. They expect you to take the Deposit in lieu. This leaves you vulnerable to the cost of breakages and disrepair.

Always get as much personal information about your Tenant as possible. You never know when it might become useful. Do a credit check before commencing the tenancy and take up references.

Keep a copy of any cheques given to you, so that you know his or her bank account details.

Draw up a proper Tenancy Agreement, so that the Tenant knows his obligations

Seek advice if the Tenant causes difficulties. It is a criminal offence to harass a Tenant.

Get the Rent paid by standing order and check your bank statements regularly to ensure that it has not been cancelled.

If you use Managing Agents, your agreement with them should indicate how often they should account to you for the Rent, and also the precise amount of their fees. It should also be made clear what authority they have to use the Rent e.g. to pay for any repairs/maintenance. Make sure that you use a reputable firm of Agents.

Consider the tax treatment of your rental income. If you are going overseas, your tax situation may change. Take advice.

Related topics you may find useful:

Landlord/Tenant disputes
Leases
Service Charges

Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to set up an appointment