Once you have made the decision to rent out your home, you will need to choose whether to manage the property yourself, or employ a letting agent to collect the rent for you. By working out what your profit margins are likely to be, a realistic decision can be made. Renting out your own home can seem a great deal more personal than solely purchasing an investment property.
As with any new business venture, a business plan is advisable, highlighting all of the expenditure. Some landlords will still need to make mortgage repayments on the home, regardless of whether there is a tenant making regular payments, or if the property remains empty. As the landlord you will be responsible for most of the repairs that are necessary. Certain health and safety requirements will be mandatory
and finding out what your legal obligations are, will help you decide who you wish to rent to, and for what sort of fee.
There are benefits to renting out your home- apart from financial ones. If you are unable to live there, or no longer wish to; it is a good idea to have someone else live at the property. You reduce the risk of vandalism and burglary, and the tenant will be responsible for taking good care of the property, paying you rent and also paying the council tax. You will need to decide whether to rent out your home as furnished or unfurnished. If the house is furnished, you will be responsible for the fire regulations and correct safety requirements for the furniture.
If you go ahead and let your property out to a tenant then there are certain laws that will help protect you as a landlord. It is usual to have an `assured shorthold tenancy`. This will ensure that you can re-claim the property after 6mths – should you need to. If you have not received rent from the tenant for at least 8wks, you are entitled to get your home back from them. If the tenant causes a nuisance to neighbours
or is disruptive in the neighbourhood, then you will be able to start proceedings to have them legally evicted.
Before you rent out the property, it will be necessary to inform certain authorities. Your mortgage company may not allow you to rent out a house that is mortgaged with them on the same agreement, and your current home insurance will need to be informed. It is most likely that it will be inadequate for renting out your house, and could make the insurance `null and void`.