You’ve got the itch to make a bit of extra cash and you’ve always been interested in real estate. So, the obvious solution would be to rent out one of your properties, right? This could certainly be a good fit for you, but it sounds a lot more glamorous than it actually is when you delve deeper. Becoming a landlord for the very first time requires a lot of research, time and money.
When it comes to making money from your current home or second home, renting it out is certainly one of the choices that would cross your mind first, so let’s delve deeper into the process.
You’ll Need to Find Tenants
Finding the right tenants for you will be the first port of call once you’ve become familiar with the various rules of being a landlord. Before you get to the interview process, you will need to work out what type of agreement you want. You should definitely consider a shorthold tenancy in which all of the terms are established between you and your future tenants. This will outline everything from rental costs, deposits, liability, notice periods and more.
You’ll Still Be Responsible for Upkeep
Renting out your property is a lot more costly than people think. You’ll be responsible for the upkeep of the majority of the property from painting the walls to window repair. Remember, even when you’ve started renting it out, it’s still mostly your responsibility. This is why you might want to arrange a quarterly inspection of the property so you can stay across all aspects of maintenance.
You’ll Need Insurance
Many new landlords wonder whether they’ll need insurance for their rental property, and the answer is “yes.” Depending on where you live, the type of property and the type of landlord you are, you will need to take out insurance to protect you and your tenants. Landlord insurance policies can cover loss of rent, accidental damage and emergency cover. You may also want to consider unoccupied property cover if you believe the property is going to be vacant for a long period of time.
You’ll Need to Adhere to Health and Safety Requirements
It is your responsibility to adhere to relevant safety guidelines such as gas and electricity, smoke alarms and even carbon monoxide detectors. Ensuring that all gas and electric equipment are in safe working order can be done through an inspection. Usually, you’ll be presented with a gas safety certificate which will ensure that everything has been checked over thoroughly before your tenants move in.
Hopefully, these four ideas will give you a small glimmer into what you can expect when you rent out your property for the first time. Becoming a landlord can feel overwhelming at times, but once you get your head around the rules and regulations you can sit back and start earning some hard-earned cash!