Eight considerations when renting out your property
With rental properties in high demand, you may be considering renting out a property thinking of becoming a landlord. However, you must do your research carefully and understand fully what your legal obligations will be. Here are some of the things you need to consider when renting a property.
Your mortgage lender needs to give consent before you rent out your property. If you breach your mortgage agreement, your property is in danger of being repossessed.
All income generated by the property is taxable. Tax returns will need to be submitted to the Inland revenue each financial year.
Your policy will need to be amended if you are planning on renting out your property, so you must inform your current buildings and contents insurer. Make sure the policy also covers you for public liability. Also, consider arranging landlord insurance. This will cover any financial losses that may occur due to your rental property.
You must check references and undertake credit checks before renting to a potential tenant. This will give you peace of mind.
Legal Safety Requirements
A gas safety certificate is required for all rental properties and must be updated annually. Smoke alarms must be fitted on each floor of a rental property and are required to be tested regularly. As a landlord, you also have a duty of care to ensure that no one is at risk in the property, and you must provide documented evidence that there have been regular checks by a qualified electrician. Visit https://www.gov.uk/renting-out-a-property) to check exactly what you must provide as a landlord.
Rental Information Pack
You need to be able to provide a rental information pack for your tenants that includes an EPC (Energy Performance Certificate). This contains information about the typical energy costs of the property and suggests ways a tenant can reduce energy usage. In order to help you create reports of your property quickly, consider using home inspection software. Companies such as https://inventorybase.co.uk/ provide excellent software packages that help you create customisable reports about your property.
All soft furnishings left in the property must comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (1993).
Have the property deep cleaned and neutrally decorated. Tidy up any outdoor spaces to make the property attractive to potential tenants.