It’s not all doom and gloom
IT’S becoming more popular in some quarters renting a property rather than buying one.
Many people find it more financially rewarding, rather than having a mortgage and possible negative equity.
For landlords, finding a suitable tenant can be a long drawn-out process and this is where a letting agency can help.
An agency will screen prospective tenants, and perform the credit checks and reference checks.
They can also collect rent and deal with any tenant complaints or maintenance issues.
Landlords will need to decide to whether to offer furnished or unfurnished homes. This can affect the type of house insurance you need, and what your tenant will need. Typical landlord home insurance will cover the building and carpets, and tenants will need a contents insurance policy for their possessions.
If the property is rented out furnished, and includes white goods and furniture, landlords will also need contents insurance to cover damage to these.
The amount of rent to charge needs consideration. If the property is mortgaged, then the rent should be at least enough to cover the repayments.
In addition, utility bills or council tax need to be covered. In some areas, rent prices are competitive, so it might be wise to consult a letting agent who will be able to give some idea of the likely rent that landlords can charge for their property.
All these details should be covered in the tenancy agreement. This leaves both parties in no doubt as to what’s expected of them during the tenancy. The agreement should also cover the length of tenancy, what would happen at the end of the term, and any other stipulations or restrictions (within reason) which landlords would like to