So you’ve decided to let your property. This can be a very profitable decision, but it’s important to do it the right way. There are a lot of things to consider when renting out a property, from finding the right tenant to setting the right price. In this guide, we will walk you through the entire process step-by-step. We’ll start by discussing how to find a tenant and how to screen them for compatibility. Then we’ll move on to pricing and lease agreements, and finally how to manage your property once it’s rented out.
Preparing your property for rental
To start with you need to make sure your property is ready for tenant occupation. This means making sure the property is in good condition and repair, and that it meets all local ordinances and building codes. Once you’ve done this, you’re ready to start advertising your rental. Electrical safety certificates, energy performance certificates, and gas safety certificates must be obtained before a tenancy can start and a good estate agent can help you obtain these.
Finding the right estate agent
The next step is finding an experienced and reputable estate agent. Look for someone who has extensive experience in the private rented sector and letting properties. They should also be a member of a professional body such as the Association of Residential Letting Agents (ARLA) or the Royal Institution of Chartered Surveyors (RICS).
Your estate agent will be responsible for marketing your property, vetting potential tenants, drawing up the tenancy agreement, and collecting rent on your behalf. They will usually charge a percentage of the rent as their fee, so it’s important to shop around and compare fees before you choose an agent.
It’s also worth considering using an online letting agent. These agents tend to be much cheaper than traditional high street agents, but they will not usually provide the same level of service.
Advertising your property
Once you’ve found an agent, it’s time to start advertising your property. The best way to do this is to list it on an online property portal such as Rightmove or Zoopla. You can also put up signs in the local area and distribute flyers in nearby shops and businesses. Make sure you include plenty of photos and a detailed description of the property, as well as your contact details. Again, a good estate agent will manage this process for you to ensure your property is seen by as many qualified potential tenants as possible.
Screening potential tenants
The next step is screening potential tenants to find the right person for your property. This process usually starts with a tenancy application form, which will ask the applicant for their personal details, employment history, and income. You should also ask for references from their current landlord and employer. Once you have this information, you can start running background checks. This usually involves a credit check, but you may also want to do a criminal background check if the applicant has a history of violence or crime.
Drawing up a lease agreement
A lease agreement is a legally binding contract between you and your tenant. It should detail the terms of the tenancy, including how long the tenancy will last, how much rent will be paid, what the property can be used for, and what kind of repairs and maintenance the tenant is responsible for. Be sure to have a lawyer look over your lease agreement before you sign it to make sure everything is in order.
Managing your property
Once your property is rented out, it’s time to start managing it. This includes tasks like collecting rent, dealing with repairs and maintenance issues, and handling any problems that may arise with the tenant. If you’re using an estate agent, they will usually take care of these tasks for you. But if you’re managing the property yourself, you’ll need to be prepared to deal with any issues that come up.
The final step is to sit back and relax! You’ve now successfully let out your property and are on your way to becoming a landlord. Just remember to stay on top of things and manage your property carefully, and you’ll be sure to have a happy tenant in no time.
Mistoria Estate Agents are experts at letting property and managing buy to let investments. They understand that letting out a property can be daunting, but are happy to help make the process as smooth and stress-free as possible.