Renting, whether you like it or not, puts us in front of many small or major issues to deal with. Prevention, as always, is better than cure.
A landlord must complete a variety of tasks before renting out their house or flat.
Some are required by law, while others are advised since changing your mind, later on, will either be impossible or too late.
Here is a guide to help you make sure you don’t miss the first rental of your real estate investment, along with tips for taking effective initial steps as a lessor.
We want to give you some great tips that can help those who rent out a place have no problems during the process.
Hire a Letting Agent
When it comes to hiring a letting agent, it is important not to choose them only because they seem nice and are very polite to you. Therefore, getting an agent with experience and knowledge in their job like someone from Garrett Whitelock estate & letting agents is always a smart strategy.
Today, the market offers every owner robust protection to secure their investment. They can be found and recognized only with the help of an experienced letting agent. Here are some of the most important risks you need to consider so you can be prepared:
- the risk if the tenant refuses and does not want to pay rent
- legal fees to manage the eviction proceedings against the tenant
- damage that the tenant makes
This can be written in a self-protection form with the help of a letting agent who knows exactly how to approach different situations and tenants.
Today, this form of self-protection is not only useful, but it is also indispensable and considered a must when it comes to renting.
Choose a Type of Contract That Suits Your Needs
As a renter, you need to know that there are two types of contracts: a short-term contract and a long-term contract. Each of them has its pros and cons, and you need to think carefully about which one you prefer.
This will directly affect many aspects of your life, including the fees you need to pay. If you prefer to have new tenants move in frequently because you are not sure whether you want to always rent the property, then you need to select a short-term contract. But if you want to find serious tenants who will use your property for years so you can have a secure income each month, then you need to choose a long-term contract. Make the right decision for you.
Choosing a Tenant
Go beyond a simple interview. Unfortunately, a simple 5-minute interview won’t be enough for you to make a decision. You need to spend more time getting to know the people who want to become your tenants. You should get as much information as possible about them to make sure you will be dealing with a serious and honest person.
Finding out if they have a stable monthly income so they can cover their rent is the first thing you need to find out.
Choose Between an Unfurnished or Furnished Rental, Primary or Second Home
The majority of rentals on the private rental market are for primary residences that are not furnished.
You can research the furnished rental market or the seasonal rental market depending on where your property is located or how big it is.
There are pros and cons to each of these rental arrangements.
The procedures with the renter and the tax conditions are not always the same.
It is best to inquire about this type of aspect from the beginning of the rental because switching between them might be time-consuming and challenging.
For instance, if you rent an empty place for a year, you are required to rely on a 3-year lease that is renewed.
You’ll have to wait until your current residents leave before you can provide alternative housing for prospective tenants.
Thus, the process may become more complicated.
Except in some limited circumstances, you will not be able to ask your tenant to leave so that you can modify the way your property is used.
So, give the option of renting your home furnished or unfurnished considerable thought.