If you're looking to buy or sell a property in the Wigan Area then openhousewigan.co.uk the right place.
(prHWY.com) November 19, 2012 - New York city, NY -- There are many benefits to Letting out your Property, including the property itself (which will hopefully appreciate in value) and the rental income, which has never been higher & should certainly cover the Mortgage and allow for a tidy return. In fact, property investment has been one of the best performing asset classes of the last few decades, and returns can be in the tens or even hundreds of thousands of pounds!
However there are number of things to consider to ensure a successful, profitable and LEGAL let. Follow these top tips to successful letting and you won't go far wrong!
Safety First
A property must be in good condition before it's Let, you as the Landlord are responsible for the maintenance of the structure of the property, installation for the supply of water, gas & electricity and must ensure that they remain safe and in good order throughout the tenancy period.
Ahead of agreeing a tenancy ensure that you:
* Hold a gas safety certificate from a registered gas installer; this should be tested & certificate produced annually. Expect to pay c.£35
* Check all furniture is fire resistant-All furniture must comply with the furniture regulations, be fire retardant, and carry the proper labels.
* Electrical Appliances must be safe and if these are not new, it is wise to have them tested regularly and plug sockets properly sleeved and safe.
Inform your Mortgage Provider
You should check you are legally allowed to Let the Property and ideally seek written permission from your Mortgage Provider.
Finding your ideal tenant
In the current buoyant Rental Market people who are interested in moving in to your property will probably start to contact you as soon as you've advertised the letting. An agent will usually find tenants for your property for an agreed fee or you may decide to go it alone, in any case ensure the following is carried out:
* Obtain ID from your potential tenant
* Obtain References , ideally from their previous Landlord (subject to Tenant Consent)
* Complete Credit Checks (subject to Tenant Consent)
* Check Affordability- obtain employment & income details
* Where possible meet your new tenant, to get a feel for their personality & whether you feel you would be happy to trust and do business with them throughout the term of the tenancy.
A good Lettings Agent will take care of all the above for you, helping you to find a suitable, reliable tenant in a timely & cost effective manner.
Inventory & Regular Checks
Quality, thorough inventories are essential; photographs are great as they show the exact condition of the property prior to your tenant moving in and are increasingly used by the Tenant Deposit Schemes to help resolve any disputes at the end of the tenancy.
Regular checks are wise; we recommend once every 3-6 months to asses any damage that may have occurred through general wear & tear or otherwise. Please note you must provide notification (24 hours should be sufficient)
Protect Deposits
The Tenant Deposit Protection (TDP) Scheme came into force in April 2007; deposits are protected to ensure:
* Tenants get all or part of their deposit back, when they are entitled to it
* Any disputes between landlords and tenants are easier to resolve
* Encourages tenants to look after the property they are renting
In all cases where a deposit is taken as part of an Assured Shorthold Tenancy(AST) either by a Landlord or Agent it must be protected in one of the following government initiated schemes:
1) The Deposit Protection Scheme- Free to use & open to all Landlords & Letting Agents
http://www.depositprotection.com/
2) My Deposits-
http://www.mydeposits.co.uk/
3) The Tenancy Deposit Scheme-
http://www.tds.gb.com/
The schemes are simple to use and as long as there are no disputes between both parties at the end of the agreement the agreed amount of the deposit is returned to tenant within 10 days. If however an agreement can't be reached between both parties, the scheme protecting the deposit will provide a free service to help resolve disputes.
Caution: If you are not protecting your Tenants Deposit you could be ordered to repay three times the amount!
Be Smart-Get Protected
When you become a landlord, standard insurance is no longer likely to cover you whilst your property is Let.
Failure to get essential cover for what is potentially your biggest asset could prove to be a very costly mistake should disaster strike.
Types of Insurance
Landlord Buildings Insurance- covers the actual structure of your rental property along with any permanent fixtures and fittings. If the building suffers any damage, this insurance will cover/ help you meet repair, clean-up, rebuild costs.
Landlord Contents Insurance- covers the items inside the house. The level of which you furnish the property will dictate the level of contents insurance you require. This does not include the Tenants possessions; which is up to them to cover.
Rent Guarantee Insurance-It is prudent to ensure against tenants defaulting on payments, especially with the recent rise in redundancy & unemployment, many of which come with legal protection and assistance.
We recommend Rentguard Insurance, we've found them to be competitive on price as well as very comprehensive on cover and have partnered with them to obtain special discounted rates on a range of insurances, please quote RG65370. Telephone: +44 (0) 208 587 1060 for your free/ no obligation quote.
Reduce your Tax Bill
Record all Income & Costs incurred as a result of Letting your Property, this is vital for your tax return & keeping tax liabilities to a minimum.
Pay particular attention to "Allowable Expenses" as defined by HMRC as certain costs associated with the management & upkeep of properties whilst providing a service to tenants. The most common allowable expenses applicable to Landlords include:
* Agency Fees
* Mortgage Interest
* Building & Contents Insurance
* Legal & Accountancy Fees
* Utility Bills
* Safety Inspections
Letting property can be a great money earner when you get things right, It may seem like an easy way to make money, but letting out a property can at time prove complicated.
You might feel tempted to cut out the middleman and let the property out privately... not having to pay agents' fees will maximise profits, but unless you have a lot of experience in letting out properties, are willing to do some leg work and are aware of the laws and regulations involved, it isn't advisable to go it alone.
Whether you are a professional landlord owning several properties, or a newcomer to the 'buy-to-let' market, it is well worth the effort to get some professional help from a
local letting agent.
We hope that this information was helpful to you.
Wigan Estate Agents are pleased to assist with any questions you may have.
You may view the website at
http://openhousewigan.co.uk/.
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