Even with the recent dreadful financial problems the world is facing, the private rental property market is as safe and secure as anything you can have put your money into.
You should be riding this storm out with a solid asset and rental income that is paying the mortgage.
Of course, no investment is without risk but the main risk with private rental property is the loss of the rent - which of course we pay the extra insurance on so that it should not affect us.
If you are looking to invest in private rental properties then it is good to learn from those who have been through the process of preparing a property for rent to improve both the chance of high rent and to reduce any risks to the investment.
A good summary of this requirement is that the property must be in good repair and show no signs of previous occupancy.
Preparing to rent the property
A good place to start, if this property is currently your home, is to inform the mortgage company you want to change the use of the property to private rental and ensure they have no objections. There will be a fee (there is always a fee!) for this change.
The next step is to find a good rental agent to find your tenants and manage the property for you. Unless you are going to be living nearby and have the time to look after the property yourself it is a good idea to have a property manager. This way you can leave the whole business to run itself. Its not free - but you will be!
Keep the government happy
Fill out the form that tells the tax office of your intentions to receive rent. If you are being paid through an agent they may be legally required to keep a percentage of the rent until you show proof you have done this. You may also need certificates for Gas Safety and Energy Performance. Your agent will be able to point you to these agencies.
Decoration and maintenance of the private rental property
You absolutely must bring the whole private rental property up to an excellent standard. Remember, however, that you are decorating for the new tenant not for yourself - you are not going to live there! Choose neutral colours like white and light browns. Paint everywhere and replace wallpaper where necessary.
Do all those maintenance jobs you keep putting off. You may have been able to live with them but the new tenant will not be so tolerant. Fix those leaks. Repair that step you keep tripping over.
Consider replacing the white goods with cheap easy to use equipment that will have their user guides and new warranties.
If you have lived in the house for a long time then start selling the things you don't need. The more time you have the better price you can ask. Don't wait until the end and you have to panic sell at a low price.
Hire a trailer (not skips) - which is invaluable to take all that rubbish to the recycling centre and dump. As many trips as you like at no extra cost.
Sell your cars and buy a little run-around (with a tow-bar!). You can then get a good price for your main cars and small cheap cars are easier to sell.
Cut back the garden to a minimum possible to provide a clean canvass for the tenants. Plant some colour and get rid of the moss from the patio (its amazing the effect it can have). Fix and paint the fences.
Leave basic tools for the tenants.
Have the chimney swept. This may be a legal requirement to ensure it is safe for the tenant to use. It may be a shame but if in doubt then block it off and put a vase of flowers in front of it instead.
Once you can move out, have the whole house professionally cleaned. Especially including the oven, the carpets and the windows.
Tenants of private rental properties would usually pay all the household bills so do not forget to cancel the phone, broadband, cable and satellite TV.
Do not forget to read the meters ready for the new private rental tenants to pay the bills.
Re-direct your post. You really cannot expect your tenants to look after your post for you.
Arrange through the rental property agent for maintenance of the boiler, gas and plumbing. You do not really want to have to be called every time there is a problem.
Lastly write out any other useful information about the property that the new tenants will need to live comfortably in the property such as emergency numbers for gas, electric and sewage problems. Tell them the location of water taps, fuse boxes, electric and gas meters, and telephone points. Perhaps even include a short welcome message to make the private rental property feel more like a home.
All these preparations will help you get the best rent and the most satisfied tenants who will want to stay with you and leave you to look for your next private rental properties.
Dave_T_Corby
0 comments:
Post a Comment