Now might be the best time for you to look into becoming a landlord. Many people are looking to downgrade their living situations and would be willing to take on an older house or flat if it has the right price point. You could upgrade your family to a new home and use your old house as a rental property.
You must highlight to your estate agents that you want to live in one home while generating an income with the other. They can help guide you and give valuable advice on retaining property while getting approved for a second mortgage.
Being a landlord is work, and you should prepare yourself for the rigours of the job before you begin looking for tenants. There are many things to consider. Will you lease the whole house or rent by room? Does the property need to be refurbished before it can be rented? Will you be able to do repairs yourself, or must you hire a contractor? How will you find your tenants?
You will also need to look into local and council rules and regulations to ensure that you can rent your property without too much hassle. Homeowners insurance is also unsuitable for a rental property and will need to be upgraded to fit the type of leasing arrangement you decide to have. Luckily, once you have the background details settled, it isn’t that difficult to find tenants and get started on becoming a landlord.
Look Online for Tenants
The majority of people look for everything they need online. Your prospective tenants are likely online searching for a rental property as well. Do some research to find the best websites to promote your property and make an account. Share good quality pictures and provide all pertinent information. This will help you avoid wasting time by ensuring that you only have to show the property to serious prospects.
It can be time-consuming to schedule visits, and sharing good quality pictures of every room and a detailed list of appliances will attract serious renters. You want the kind of people who appreciate detail and thoroughness as they are most likely to be clean tenants who pay their rent promptly.
Do You Need a Property Manager?
If you plan to rent out the rooms separately or to a particular demographic such as students or single working adults, you may want to work with a property manager. Property managers often specialize in managing housing for specific demographics and have the experience to know how best to operate.
It is also a great way for you to ensure the property is taken care of and the tenants are happy without you having to take too much out of your busy daily schedule. It can be a full-time job to manage multiple tenants, and a property manager has the resources and time to do so where you may not.
Look into the other properties your prospective manager has worked with to ensure that they are a professional person who handles matters promptly. These kinds of background checks are essential to ensure that your tenants do not face issues and that you receive your rental fees on time. The right property manager with a good record can handle your property without worrying and reducing a great deal of hassle for you.
Be Realistic with Rent Fees
People can be very attached to their properties and may feel that it is worth a lot more than people would be willing to pay for it. It would be beneficial to take a critical eye to your property and evaluate it to see if it is worth a high fee. Pricing a mid-range property with high range prices can drive off reliable tenants, and you may find yourself losing money because the property is standing empty for a long time.
Take a measured approach, look into how many properties similar to you are charging. Then consider your estimated expenses for managing the property. The most important expenses to consider are mortgage fees, property taxes, and insurance.
Your rental price should reflect a good amount of revenue for you but factor in your expenses. Consult an experienced landlord or use an online service to find out how much rent you can feasibly charge for your property, considering the benefits of living in that area.
Families will pay more for a home in a good school district, while young working adults will be willing to pay a more premium amount for an apartment near the shops, with easy access to the tube.
One of the most important screening processes of the many you must undertake to become a landlord is the tenant screening process. All the hard work you put into making your property attractive and comfortable will be for nothing if you rent to tenants who do not pay their rent on time and have dirty habits.
It is always helpful to request references from your prospective tenants as this is the easiest way to contact people who can inform you if they are worth the risk. Check their background outside of their references as well. People may try to hide unsavoury information about themselves to get a good property. Choose tenants who seem personable, have steady jobs, and do not have criminal histories.