... Now you have purchased your
Rental Property, you must make it ready for your tenants. You will
either need to Furnish Your Property or make
a proactive decision to let the property unfurnished. Think about what your
Target Tenant Will Expect-; a furnished property will let generally quicker than
an unfurnished one and also command a higher rent. You will need to Plan The
Interior Look And Feel to furnish across different rooms using the same colours,
particularly the kitchen and bathroom.
Expect that if you purchase furniture for your
Rental Property, it will suffer Wear And Tear due to constant use over time;
chips, knocks, breaks, smears, spills etc. If you are letting Unfurnished it is
sensible to provide the very basics – fridge/ freezer, cooker, washing machine,
carpets and curtains. If you are letting furnished the tenant can, in theory
move in empty handed and have everything they need to live in comfort and
convenience. In practice, you will probably need to think about what Items Your
Ideal Tenant Is Likely To Expect, want and need. Remember that there are usually
lead times of around a month for kitchen and bathroom units – build this into
your project plan.
In terms of decorating the Rental Property never
inflict your own personal taste about interior design and colour on someone else
no matter what! Most tenants these days expect quality decoration and
furnishings. Allocate your decorating budget before you visit DIY shops. Always
use clean, neutral and simple colors throughout, particularly in the kitchen and
bathroom. Boring beige and monotonous magnolia are just great for renting! Make
sure the entrance door is freshly painted and clear of junk mail. Always buy an
extra tin or two of the paint you are using throughout the Rental Property for
future painting.
The general condition of the Rental Property
needs to be first class before you start viewings for prospective tenants. Most
tenants these days expect quality decoration and furnishings. Cleanliness is
essential; vacum and dust everywhere and tidy loose objects away. Make sure all
light bulbs work – you don’t want to be showing tenants around in the dark.
First Impressions count so put some fresh flowers out – first impressions are so
vital in persuading prospective tenants that they should let your Rental
property. Wash the window frames down. Lastly, Security; provide window locks on
every window, a strong bolt, burglar alarm and a security light.
If you are seeking to Add a Loft Conversion
before your let, typically the money you will spend on this development will
only be returned in the longer term from higher rental yields. Ring your local
authority, who will provide you with local development plans; these specify the
general conservation aims and detail restrictions. These rules aim to conserve
the local area, limit urban sprawl through unauthorised, unsightly or
inappropriate building works.
You must Set The Rental Value by investigating
the going rate for similar properties in the area, to the one you have
purchased. Track the rental values over a period of two months and make sure you
are confident in the stability of the area. There is no real guarantee you are
going to achieve the rent you hope unless you do your homework. Factors that
determine rental value is the Rental property itself, its location and seasonal
factors. Only through Thorough Research can you determine the appropriate rent
level. Most critically, you must Plan To Avoid Rental Voids - don’t be a greedy
landlord in setting your rent too high. It is usually better to have a lower
rent (with no rental void periods) than to suffer void periods. Next you must
obtain relevant letting insurances & income protection.
If you plan to use a letting agent to manage your
property, try to use a letting agent that is a member of the Association of
Residential Letting Agents (ARLA). You will need to Sign a Landlord Agreement
with a Letting Agent. Alternatively, you may adopt to save around 15% of your
monthly rent Managing the Let yourself. It’s a simple balance of hassle/ time
versus money. One of letting agents biggest strengths is that they have a steady
stream of prospective tenants at their window or in their office – they will
have professional processes to vet and process these prospective tenants
quickly. To advertise and vet prospective tenants yourself wastes time – which
costs you money.
Before you Show A Prospective Tenant Your
Property, think about your safety; always tell someone exactly where you are
going, the details of who you are meeting, what time you will be leaving and
returning; and any contact telephone numbers. Be organised enough to know the
approximate costs of Council Tax, Water, Sewage, Gas and Electricity, if the
prospect tenant asks. If a prospective tenant wants to let your new property,
ask for a non-refundable Holding Deposit (which will eventually be deducted from
their initial rent) of say £100. Be prepared with a form for them to complete
either on the spot or post back to you, requesting their personal details to
initiate Tenant Referencing.
If references appear OK, and you are not using an
agent you should Collect The Rental Deposit yourself from the tenant (usually
one and a half times monthly rent) plus one months rent in advance, at the same
time the Assured Shorthold Tenancy Agreement (AST) Is Signed. It is important to
Personalise your own AST to ensure it protects your interests. Any additional
clauses must be fair under the Unfair Terms in Consumer Contracts Regulations
1999. Make sure your tenancy agreement is sent away to the Stamp Office with
your stamp duty so that it is legally valid
It is essential that a detailed inventory process
take place before the tenancy begins. An inventory is an accurate written
description of your property and its contents, providing evidence in the event
of a future dispute regarding the property and/or its contents. An inventory
will protect you and the tenant from disputes, as it is a document you both sign
up and agree to, before the tenancy begins.
When you finally hand over the keys make sure you
have one set, the agent has one set (if you are using an agent) and the tenants
have two sets (including any other keys for the windows, padlocks, alarm,
garages etc). Personal touches and first impressions really do count… If you
cannot personally Welcome Your Tenant to their new home, leave a note or card;
detail utility companies telephone numbers as well as local information on
restaurants, take-away, bus and train timetables, maps, local emergency
telephone numbers etc........
