Guide to letting property

Whether you have decided to rent the home you currently reside in, or have just purchased a buy-to-let property, you will need to plan your approach to getting it on the market. Here at Discount Landlord, we have put together a guide to letting your property.

1)  Establishing a letting strategy

Carefully think about where you rental property is located and the type of person that is most likely to rent in the area.

Does the area have a university nearby? Is it close to good transport links attracting professional commuters? All things to consider.

Once you have considered which type of tenant you want to attract, you should consider tailoring the property in a way that may appeal to them. However, it is important to keep you property flexible, ensure you decorate it in a way that is still attractive to other types of individual who may be thinking of renting in the area.

2)  Important considerations

Before you can market your property for rental purposes, you will need to:

• If the property has previously been occupied you may need to inform your current mortgage lender.
• You will not be covered by regular household insurance.
• That tenants will be living in the property from now on.

3)   Appointing a letting agent

The amount of commitment and work involved in letting property should never be underestimated and the majority of landlords choose to use a professional letting agent to help with the various requirements of being a landlord.

Using the services of a letting agent takes away the stress and strain of finding a tenant, negotiating rent and dealing with on-going maintenance requirements.

A letting agent can assist with:

- Promotion of your property through online and offline marketing methods.
- Conduct viewings and negotiating the rental price with the tenants on your behalf.
- Checking tenant's identification, references and credit status.
- Collect the rent on your behalf.
- Sort out any maintenance issues that may arise from the property.
- Organising tenancy agreements, inventories and deposit schemes.
- Provide professional guidance and advice.

4)   Preparing your property to let

When looking to let your property it is vital that you present it in the most attractive way possible and you should carefully maintain its condition for each viewing.

Outside

- Ensure gardens are neat and tidy – mow the lawn and weed the flowerbeds.
- Give window frames and doors a lick of paint.
- Ensure rubbish bins are not visible.

Inside

- De-clutter by removing personal items. Arrange self-storage for any larger items of furniture you do not wish to keep in the rental property.
- Clean the property thoroughly and ensure it smells fresh.
- Repair leaky taps or cracks in the walls.
- Decorate rooms in a neutral colour.

5)   Cost of letting your property

You should be prepared to incur costs throughout the tenancy. Remember, even when your property isn't occupied, you will still need to pay the mortgage and council tax.

The following costs should be considered:

- Refurbishment
- Safety inspection costs
- Energy Performance Certificate
- Monthly mortgage repayment
- Ground rent and service charges if you are letting a leasehold property
- Income tax
- Letting agent and management fees
- Maintenance costs
- Professional fees e.g. preparation of inventories etc.

6)   Legal responsibilities

The law requires landlords to maintain their property and undertake any major repairs that are required.

In addition, there are special rules that apply:

- Energy assessments:
Landlords in England and Wales who are letting or re-letting their property for the first time are now required an Energy Performance Certificate (EPC) to tenants.
- Gas:
Landlords need to ensure that every gas appliance and all gas pipe work meet the required safety standards. With effect from the 1st April 2009 Capita Gas Registration and Ancillary services will be responsible for the registration of gas engineers. Landlords are required to present a gas safety record of the property being let.
- Fire:
It is an offence to let a property with any furniture or furnishing that do not comply with safety regulations.
- Smoke detectors:
Properties built after June 1992 must have mains operated smoke detectors fitted on each floor.
- Electricity:
Landlords need to obtain safety certificates for all electrical equipment within their rental property to prove it is safe and will not cause danger.

If you're looking to let your property, make sure you get specialist landlords insurance from Discount Landlord. Call us now on: 020 8847 8000 or visit: www.discountlandlord.co.uk

Gaurav Ahluwalia