Letting Your Property Out
Because the housing market is down and sales are taking longer, many homeowners choose to lease their property while waiting for it to sell. Leasing can be a great option if you are waiting for your home to sell. It takes a significant investment of effort, as being aware of your legal obligations and the preparations required are critical to leasing your property successfully.
You need to make sure your home looks its best prior to listing your home. You must maintain your house clean and in good repair, just as you would if you were trying to sell it. There are a lot of tenants who will want to negotiate with you on the price. They are more likely to pay a higher price if your home shows well. But if the house has obvious maintenance issues such as dripping faucets, walls that need painting, stained carpeting, etc., prospective tenants are going to expect to pay less, if they are interested in letting the property at all.
The next thing to do is to familiarize yourself with any laws that pertain to letting your property. Becoming a landlord entails a certain amount of work, but if you don’t do everything correctly, you could end up in a lot of trouble. If there is a mortgage on the property, you must advise the lender that you will be letting out the property. If you don’t do this, the lender may attempt to repossess the property. Especially if you are only planning to let the property temporarily, lenders will usually work with you. Your insurance company is another company you must inform. If you do not keep them well-informed, you might be uninsured, and in the future this could be a serious issue. As the landlord, it is your responsibility to ensure that all gas and electric appliances and equipment are in good repair, work well and have been inspected and certified (this must be done each year). In addition, if you are going to provide furniture, each article must be fire resistant.
It is possible to let your property on your own but since it does entail so much it is often wise to higher a letting agent. Letting agents know what laws to follow as well as how to handle any different situations that may come up when letting a property. Agents also know how to price your property in comparison to other available properties. You do need to make sure that you find a licensed agent from a reputable company. Hiring a letting agent may be your best choice especially if you have never been a landlord before.
As a landlord, one last thing to keep in mind before you let out a property is that maintenance and upkeep of the property is your responsibility. When appliances need repair, it is your responsibility to take care of it, not the tenant’s. It would be wise, for this reason, to have some extra money available to you if such an event arises.
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