Renting out your property can be a great way to make income on the side or even for your primary income, depending on many factors. However, you should be aware of several things before you make the leap into renting out your property. You want to make sure that you understand your responsibilities so that you are in compliance with regulations. Whether you want an alternative to selling your home or just looking for an investment with a steady stream of income, renting out your property can be a great option when done well.
One thing that you need to consider is your mortgage on the property, if you have any. You are required to let your lender know if you are planning to rent out the property. If you fail to let your lender know, this could put you in a breach of contract. They might work with you if you are just renting until you can relocate, but otherwise you will have to potentially take out another loan on the property such as a buy-to-let mortgage. These mortgages can end up with higher interest rates with more upfront fees. You also need to let the insurance policy on your property know about your plan to rent out your property.
It is also important for you to find a good letting agency to help you with the rental process, especially if you are new to rentals. They can offer a wide range of services, depending on the agency that you choose, including help to vet potential tenants and collect rent for you. Sometimes you can even have them handle day-to-day issues like maintenance. These agencies will take a fee out of the money they collect from you, but it allows you to have someone take care of the everyday things so you don’t have to. Often times, these fees are between 10% and 15%.
After all this, you can start with the process of getting your property ready to rent out. This means that you need to prepare your property to make it appealing to renters. You want to see if there’s anything that needs to be repaired and put fresh paint on the wall to give it a clean look. Make sure the appliances work and replace them if needed. You should even consider furnishing the apartment as this can make it more appealing to potential tenants, but you will be responsible for replacing these items.
You will need to put your emotions aside on renting your property, especially if it has been a home that you have spent many years in. Emotions can make the process a lot more difficult, especially if you expect everyone to treat your property with the same level of TLC that you have. Renting a property can be a great way to earn extra income, but this can be a hassle if you have no clue what you are doing. While you do have to pay fees for a letting agent, this can be a worthwhile investment to have peace of mind during the rental process.