Research your market - Talk to ARLA Letting agents
Find out who is renting in the area i.e. professionals, companies, single people or families, students or sharers, and what type of properties are required i.e. large four bedroom houses or one bedroom apartments. What are these tenants requirements i.e. parking, gardens/outside space, locality to schools, train station etc and are they looking for furnished, part or unfurnished property.
Ask if there is demand for any particular type of property and find out how much rental properties in the area achieve.
Find out if there are any new developments planned for the area, often they will have a marketing suite or show home for you to visit and obtain further information. Local estate agents might know what projects are planned and who the developers are.
Whether you need to furnish the property or not will depend on the area and the market that you are gearing your property towards. For example, corporate tenants may expect an apartment to be fully equipped to include TV, DVD etc along with full sets of bedding and towels whilst a large family house may let more easily if offered unfurnished.
White goods will be expected by tenants and furnishings should be in keeping with the property.
Specialist furnishing companies can offer advice to landlords and provide everything from window treatments and king size beds to teaspoons and door mats and arrange everything from delivery and unpacking to dressing the property ready for the rental market.
Speak to your letting agent who will be able to advise on furnishings and recommend a furnishing company if required.
ARLA is the only professional and regulatory body solely concerned with residential lettings. Members have to demonstrate that they hold separate client accounts and that these are professionally managed and audited, they are required to have professional indemnity insurance to required standards and have staff who are trained and are up to date with the latest legislation and legal requirements.
It is important to have a comprehensive tenancy agreement in place and the correct notices are served. An ARLA letting agent will be able to help and advise you on all aspects of letting and/or managing your property.
Expect to pay a percentage of the rental income to the agent depending on the service chosen. Letting Agents will provide a copy of their terms and conditions of business on request which will outline the services provided and the fees charged and also detail any other costs such as tenancy agreement charges, inventory and cleaning, safety checks and renewals. Take into account vacant periods.
Where the property is leasehold you will need to check if you need permission to let the property from the leaseholder. The leaseholder may charge a fee for giving their consent.
Rent Guarantee and Legal Protection policies are available to cover you in the unlikely event that the tenant does not pay or you have to take legal action against your tenants.
You should keep your property in repair and good order to maximise the returns on your investment. Take into account costs for maintenance, repairs and/or replacements of fixtures and fittings and redecoration of the property.
All landlords have an obligation to inform the Inland Revenue of any residential lettings income arising in the UK, regardless of nationality or place of residence. If your normal place of abode is outside the UK, or you are away from the UK for 6 months or more in any one tax year the person collecting rent is obliged to deduct basic rate tax from the letting income and forward to the Inland Revenue on a quarterly basis. An application can be made to the Inland Revenue to obtain approval to receive rent without having tax deducted to avoid this deduction.
Certain expenses can be offset and it is advisable to consult a tax accountant. For further information please go to:
You are obliged to maintain and keep in repair all heating, light, power and sanitary fittings at the property along with any appliances provided. You have an obligation to ensure that your tenants are safe. Legislation requires Landlords to have a gas safety check carried out annually, with regular electrical checks and you should be aware of the fire safety regulations in regards to furnishings.
It is the Landlords responsibility to pay the mortgage on the property, any ground rent and (where applicable) service charges and comply with the terms of the head lease. You will also need to take out buildings and contents insurance. You are responsible for utilities and council tax payments in any vacant periods.
