Buying and renting a house can be a great way to boost your income and increase your assets; and more and more people seem to be doing just that by building their own property portfolios. There are also times when planning to move out of your home, that it might make more practical and financial sense to rent it out, rather than sell it.
However, no matter the reasons for renting a home you own, you will still be a Landlord, and that title does come with significant responsibilities. Some of these include:
- Ensuring that all gas and electrical equipment in the house is safely installed and maintained
- Ensuring the house complies with fire safety and health and safety regulations
- Protecting your tenant’s deposit in a government protected scheme
- Providing an Energy Performance Certificate for the property
You will also need to prepare a legally correct and suitable Tenancy Agreement for the Tenant. You should carefully check the Terms of your Mortgage to ensure that you are able to rent out your home. You also need to consider if the rent will cover the mortgage payments for the property, or will you have to pay income tax if the rent for the year exceeds allowable costs?
Sam Hawking & Co Property Lawyers have vast experience in dealing with a variety of different rental properties. We have found that when someone first decides to rent out their property, there is a whole host of information and legal responsibilities that they hadn’t properly considered.
We are able to provide all the correct guidance and advice when it comes to renting your property, so you will be able to safely increase your property portfolio while having peace of mind that you have completed and complied with all the correct processes and procedures.
From experience, we can also tell you that renting your property isn’t always plain sailing. There can be a number of issues that arise with tenants, such as damaged property, repairs, delayed rent payments, abandonment of the property, to name a few. Some issues will be the fault of the tenant, but some could also fall on the landlord. This is why it is important to seek professional legal advice when drawing up the contract between you and your tenants. You need to clearly lay down your responsibilities as a landlord, and what the tenant has the right to expect from you, but also need to be sure that you are safeguarding your interests.
Sam Hawking & Co’s property expertise extends to all aspects of rented property, including lease contracts, landlord responsibilities, settling disputes, and applications for HMO.