
	Residential Property Lettings

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Residential Property Lettings

Residential Lettings: Advice and Best Practice

For anyone considering letting their property, there are typically two ways to do it: instruct a lettings agent or take on the task oneself. In making the choice, you should look at how much involvement and control you want and whether you can commit to what could become an almost full-time job as a general handyman/woman.

If the circumstances are right, letting your property could reap you substantial financial rewards. If you have a property that you’re going to be spending a considerable amount of time away from, and don’t want to sell it, then letting it could be the best solution, especially if you intend returning to the property at some stage in the future. In letting it, not only will you ensure that the property is looked after (or at least isn’t left vacant and at risk of being broken into by squatters or vandals), but you will also receive payment to help with any outstanding mortgage repayments you need to make. It doesn’t take a strong entrepreneurial streak to let your property successfully, just common sense.

When deciding whether letting is the right move to make, consider not only the location of your property but also the type of dwelling it is, as this will determine the type of tenant you will attract. If your property is in a part of the city that houses a university then obviously your market is going to be students. But if your house is a standard family home, you may want to consider whether to make modifications to it so that it appeals to students who may wish to rent individual bed-sits as opposed to one family-sized house. This is the sort of information that anyone buying property with the specific intention to let also needs to know. There’s little point in buying a one bedroom flat in an area that is popular with families as finding a tenant could prove impossible.

As well as the type of tenant you wish to attract, you will also need to know the average rent price in your chosen location. If you intend instructing a lettings agent, they will be able to tell you. There are many advantages to be gained by employing an agent to manage the letting of your property: they will be able to draw up the rental contract, carry out the necessary credit checks on any prospective tenants, arrange an inventory and collect the monthly rent. They will also market the property for you, which is one area in which you may think that they more than earn their fee. Unless, of course, you have someone who wishes to rent your property, in which case, you might think that you can go it alone. However, unfortunately, letting a property doesn’t end once a tenant has been found, and anyone considering letting their property without the aid of a lettings agent should think about how ‘hands on’ they want to be. The only involvement some landlords want is to see the rent credited to their account each month; that’s why they’re happy to pay the typical 15 percent full management fee charged by most agents. Other landlords, however, take on the role of landlord with gusto. One factor to consider when deciding whether or not to instruct a lettings agent is the proximity of the house you’re renting to where you will be living, because if you do decide to manage the letting, this will be important for whenever there’s a burst pipe or a broken toilet that you have to go and fix. It also pays to have a network of reliable plumbers, electricians, and other trades people if you’re not that handy around the house yourself.

Properties can be let furnished or unfurnished. While you will be able to charge your tenants more for a furnished property, you will have to pay more in contents insurance. If the property is let unfurnished, then besides the building only items such as carpets and any electrical items supplied with the property need to be insured. And if your property has a mortgage charged over it, then it’s important that you advise your mortgage lender that you will be letting it.

While a tenant won’t have the same level of vested interest in the property as you will, there are ways in which you can encourage them to treat it well. Most rental contracts contain regulations regarding maintenance; for example, re-painting the walls is usually prohibited. However, if you show a little leniency on such things as painting walls and hanging pictures, there’s a good chance that a tenant will feel a little more ‘ownership’. Furthermore, if the tenant has the chance of buying the house or flat at some stage in the future, then that will be reflected in the way it is treated.

Ensure that an inventory is produced and signed by you and the tenant so both parties agree on the condition of the property and what items are included in the let – and what items should be in the property once the tenancy expires.

If you do decide to instruct a your lettings agent to manage your house or flat as well, then they will report to you on the condition of the property at agreed dates. And there is no more for you to do other than check that the rent is credited to your account every month.