Whether it is selling food or starting your own business, we all are looking for a way to earn some extra cash. Now, if you are interested in selling or renting anything, of course, you have to do some research. Renting is quite a big commitment, so you should be informed before starting. May it be to study competition, prices, and the like. We all need a little guidance before starting.
So if you are interested in renting your flat in the United Kingdom, then this is the article for you. We are here to make sure you stay informed on any necessary documents, give potential tenants the most affordable price, and give yourself the best profit possible.
While renting your flat can be pretty tricky, with a seemingly lengthy process, these steps are essential, as they ensure the safety of both the potential tenant and yourself.
#1 Personal calculations
The first and one of the most critical steps in renting your flat would be to do your calculations. Before putting your flat in the market, research competition, your expenses, and approximately how much you can earn.
Before starting anything, you must be aware of all the costs and profits that would happen when you push through with it. Ask yourself, is it worth it? Would I gain more than I’ll lose? These are just some of the simple yet fundamental questions you should think about. If it feels like the idea of renting wouldn’t profit you so much, then maybe you should think about it more before planning on starting.
#2 Health hazards
Once you have completed the first step and feel that you are on the good side of things, if ever you will rent, then you can start thinking about the flat you are renting. You must make sure that the place is safe to live in and is free of any health hazards. Safety equipment consists of the availability of smoke detectors, fire extinguishers, and gas safety. You also have to look out for the safety of all installed electrical types of equipment such as electrical plugs, electrical wirings, and anything that could cause accidents in the home.
When renting, council inspections are something you always have to anticipate as these are some of the safety precautions the government takes to ensure that the place you are renting won’t harm your tenant. There may also be a possibility in the future wherein they would want to demand council inspections, which is why it is imperative to be sure that your land is free of any problems that can harm the resident.
#3 House maintenance
As discussed earlier, house maintenance is quite costly. This is why before renting, you should always start computing for your expenses. Being a landlord means that you are in charge of maintaining the house, paying the electricity bills, cable, gas, and the like. You always have to be aware of the land’s condition. Are there any plumbing problems? Is there any faulty wiring that needs fixing?
Whatever it may be, you need to be aware that you will be the one who covers the expenses for this. While there are some instances where you can charge your tenant, you would have to make sure that this is stated in the tenancy agreement. Otherwise, you are going to be the one in charge of all house maintenance expenses.
Preparing the property
Directly connected to this would be preparing the property before renting. You have to make sure that all appliances in the house that’s precious or fragile should be taken out. This is to ensure that the tenants do not accidentally break any items of yours that you consider to be valuable.
#4 Tax and insurance
While accidents do happen, this is also one of the things landlords should anticipate. And while it is not required in the United Kingdom, it is highly recommended for landlords to arrange a landlord insurance policy. This way, you can protect your financial interests and give yourself peace of mind. Some things that aren’t part of the insurance policy but you can choose to cover yourself would be:
- A reduction in rent
- Unintentional damage
- Coverage for a landlord’s residence in the event of an emergency
- Insurance for rent guarantee
Optional: Having an agent
If you think that doing all the requirements are too complex for you, you can always consider having an agent. With agents, they can tell you everything you would need, give you the best selling price for buyers possible, and save you the hassle of arranging everything by yourself. If you do hire an agent, add this to your computations and make sure that even with the cost of hiring one, you would still be able to get a good profit.
Things to keep in mind
If you are planning on renting your flat to sponsor your family, do not forget to make sure that you have a dependent visa, as this states that you are a permanent resident that can sponsor your family. With that said, you should also make sure that your family has a sponsor licence application in UK, as this would indicate that your family has received approval from the UK Home Office to sponsor them.
While renting a flat could be quite confusing and challenging, if done correctly, it would give you fruitful results that would eventually benefit you in the long run. With that said, don’t forget to do thorough research on both renting and looking for tenants. This way, you can prevent any future complications.