Seven Factors To Consider Before Renting Out Your Property

Whether you want to purchase an additional property or are in a position where your current home is going to be empty for a while, renting it to tenants can be an ideal way to ensure that it is lived in and looked after and a good way to earn some additional money. However, renting out a property to tenants will come with an additional set of responsibilities that you will need to be aware of beforehand.

There are several legal factors to take into consideration before renting your property out including ensuring that it is safe and habitable for the residents and making sure that regular safety checks and property maintenance are kept on top of. You’ll also need to make sure that you or somebody else will be present for any emergencies that might arise with the property.

Landlord insurance

When renting out your property, you will need to make sure that it is covered by insurance for anything that could go wrong. Your tenants will be responsible for providing their own insurance for their contents; however, you will need to make sure that the building itself is insured against damage, fire, and other problems. Landlord insurance will protect your property from any damaged caused by fires, natural disasters, leaks, flooding, and other incidents that could become costly to repair. Some insurance policies might also cover the cost of making sure that your tenant is provided with somewhere to stay if an incident occurs and the home needs to be vacated for repairs to be made.

Gas safety

If the property that you plan to rent out has a gas central heating system, it is a legal requirement to have a Gas Safety Certificate for the property. You’ll need to get this before the tenants move in, and then continue to get it renewed on a yearly basis. The safety check needed for the Gas Safety Certificate should be carried out by a certified Gas Safe engineer. To make sure that the gas central heating system is safe for tenants to use, you might need to replace the boiler, especially if it is old. Bear in mind that since the boiler will be your responsibility as the landlord, it’s worth investing in a new one since an older one could cause frequent problems which is more expense and hassle for you. Find out more about boiler replacement, the cost of a new boiler and what to expect at Boiler Central. Boiler Central offer a wide range of boiler options including combi boilers that are ideal for the average rental home in the UK, and they can also help you arrange installation.

Energy Performance Certificate

You will need to get an Energy Performance Certificate or EPC on the property before you rent it to tenants, as a legal requirement. The EPC provides further information on the energy efficiency rating of the property and advice on how it could be improved. To get the EPC, the property will be visited by an energy assessor who will check the electrical system and appliances before supplying the rating. In addition to the EPC, it’s also important to make sure that the electrical system in the property is safe, which might involve rewiring in an older property.

Other home safety factors

Aside from the big ones like gas and electricity, it’s important to ensure that the home is safe for tenants. This may involve the removal of hazardous materials like asbestos, for example. You should also ensure that the property is in good repair and there are no areas like broken steps that could lead to avoidable trips and falls. You’ll need to make sure that the property is fitted with preventative features like a smoke alarm and carbon monoxide detectors, which you can purchase from a good hardware and DIY store. A smoke alarm should be provided on each floor and they should be tested on a regular basis to ensure that they are working correctly. The carbon monoxide alarm should be situated anywhere in the home where there are CO gas-burning appliances like the boiler.

Property management or self-management?

Deciding whether to manage the rental property yourself or pay a property manager is a big decision. By self-managing, you can save money, but a property manager is often worth the fee since you can trust them to take care of any issues with the property for you without having to step in yourself. When self-managing, you need to be aware of anything that could go wrong with the property at any time and be available to deal with it, even if you’re on holiday or it’s inconvenient for you.

Mortgage restrictions

Unless you have a specific buy-to-let mortgage, you will usually need to apply to your mortgage lender for permission to rent the property to tenants, depending on the type of mortgage that you have. If you bought the property to live in as your home, you will usually need to make sure that your mortgage provider is made aware of the situation.

Licences

You might also need to consider the additional cost of getting a licence depending on the type of home that you plan to rent out. If you own a large property, you can often earn more by renting it on a per-room basis. However, this is classed as a house of multiple occupation and you will need to have the appropriate license for it. Bear in mind that if you want to rent a property out as an HMO you will be liable to pay the council tax on the property yourself and this should be reflected in the rental charge. In some cases, it might be easier to arrange for utilities and include this in the rent when managing an HMO, particularly if you expect the tenants to be renting short-term rather than long-term.

Whether you’re buying a house to rent or want to make some money from your empty property, there are several important factors to consider before you hand over the keys to tenants.