Renting out a property can be a good, steady source of income. If you are thinking about renting out a flat, there are some considerations to bear in mind.

Budget – If you are purchasing a buy-to-let, the primary consideration of course is your budget. Consider the amount of rental income you can realistically expect by checking with similar properties in the area and compare these to your mortgage outgoings. Make sure you have enough money to pay for any essential repairs and maintenance on the property, as well as insurance, letting fees and any furnishings.

Permission – You need the permission of any mortgage lender to let your flat out. You will need to keep your buildings insurance in place and also inform your insurer that the flat will be let as otherwise the insurance will be invalid. If your flat is leasehold you should inform the freeholder.

Tenancy agreement – This will generally be an assured shorthold tenancy (AST) agreement, usually for six or 12 months. Having a written contract with terms and conditions clearly stated is helpful to prevent any disputes in the future.

Your responsibilities – As a landlord, your responsibilities include maintaining the property with regards to its structure, heating, plumbing, gas and electric appliances and fire safety. Gas safety checks should be carried out annually. If you are letting on an AST you also need to hold the tenant’s deposit in a tenancy deposit protection (TDP) scheme.

Location – When selecting which property to buy, it is a good idea to do some research into the local area, if you are new to it. Consider who you want to let to. If you want to let to families, look for properties in quieter locations with good schools and transport links. Look for cheap, lively areas near to universities for student accommodation.

Tenants – If you are letting to students or other sharers, consider if this will be as single rooms or a combined houseshare. Both have advantages and disadvantages. Letting to multiple parties as a House in Multiple Occupation (HMO) brings further legal responsibilities and you may need a licence.

Flat condition and layout – When purchasing a flat to let, consider the condition of the building and interiors. Carrying out work before you can rent means a loss of rental income. Decorate if required, bearing in mind your target tenants. Consider the layout of the flat. For example, if renting to housesharers, is the kitchen large enough for several people to use at once? Do all bedrooms have doors exiting into the hallway or common areas?

Furnished or unfurnished – Furnished properties are often more popular, but there are legal responsibilities when it comes to fire safety for furniture that you have supplied. Families may be more likely to have their own furniture. Part furnished is another option.

Letting agents – If you are new to letting, live abroad or want someone else to deal with managing your property, you may want to use a letting agent. Letting agents in Manchester can find tenants, deal with all maintenance and repairs, draw up tenancy agreements and inventories, collect rent and protect your tenant’s deposit.

Ben Greenwood is writing on behalf of Shepherd Gilmour, specialist Manchester city centre estate agents.

Ben Greenwood is writing on behalf of Shepherd Gilmour (http://www.shepherdgilmour.com), Manchester estate and letting agents.

Author Bio: Ben Greenwood is writing on behalf of Shepherd Gilmour, specialist Manchester city centre estate agents.

Category: Real Estate
Keywords: estate agents, letting agents, property to buy, property for sale