We've created an in depth guide for everything you need to know about renting your property.
To find the right agent for you, you will need to consider what services can be offered, but most importantly, that your agent acts in your best interests when it comes to the entire lettings process.
The agency you choose should be able to provide:
If you are wanting a quick guide as to what your property may achieve on the rental market, then try our Instant Valuation.
It is always best practice to have a full rental valuation carried out at your property. This gives the agent a chance to visit your property to see its full potential, as well as an opportunity for you to ask any questions you may have regarding the process. We would provide you with a guide figure during your valuation based on the vast amount of knowledge we have regarding the local area and how the current market is performing.
The agent who carries out your valuation can provide you with all the necessary information on how to get your property legally ready to rent.
To be able to rent your property, there are a few things that must be in place prior to doing so.
1. Inform your mortgage provider
It is paramount that you inform your mortgage lender that you are going to be letting your property out. Failing to do so could mean that you are breaking the terms of your mortgage contract.
2. Arrange Landlord Insurance
Landlord insurance is very similar to home insurance in the way it works, but it is designed to cover rental properties specifically. There are three main types of Landlord insurance: Buildings; Contents & Liability. There are additional add ons such as Rent Guarantee & Home Emergency Cover.
3. Financial Stability
Ensure you weigh up the costs prior to making the decision to rent your property. Any rental income will be taxed at 20% if you are a basic rate taxpayer, and 40% as a higher rate taxpayer. Consider any agent fees as well as additional costs to the property that may incur, such as emergency works or maintenance.
4. Certificates & Legislative Requirements
There are many boxes that need to be ticked prior to renting your property that involve meeting legislation requirements.
There are multiple options to choose from whether it is the length of the tenancy, or the type of tenancy required.
Short Term
A short term let can start from one day up to a few months. This is ideal for someone who maybe lives abroad for a period throughout the year or has a second home.
Long Term Let
A long term let usually starts from 6 months and can last for a few years. Many Landlords opt for long term leases because of the benefits which include regular rental payments & peace of mind knowing the property is occupied for a longer period.
Assured Shorthold Tenancy (AST)
AST’s are the most popular tenancy used and are applied to tenancies with the following features:
AST’s usually have an initial fixed term of 6 or 12 months.
Non-Assured Shorthold Tenancy
This type of tenancy is only used in situations where and AST cannot be used, such as:
Company Let
When a company rents residential accommodation for its own staff or directors, this is known as a Company Let. If the property is rented by a company for the purpose of subletting to customers, then this will be a commercial tenancy.
Fixed Term or Periodic?
A fixed term tenancy is put in place for a set amount of time, usually from 6 – 12 months in length and can be renewed after each period ends. There is no maximum length of time a fixed term can be for but do note that if it is longer than 3 years, then the tenancy agreement must be signed as a deed. Notice can only be served at the end of the fixed term unless a break clause has been put into the agreement. Once the tenancy ends, it automatically becomes periodic (rolling monthly basis).
A periodic tenancy has no fixed end date unless the Landlord or Tenant provides notice to end it.
Tips & Tricks
We ensure your property is advertised online is as many places as possible to include:
If preferred, we do offer Discreet Marketing. This could include no To Let board, or not to be posted on any specific website or social media platforms.
Usually, viewings are carried out by the agent, unless the Landlord has a specific request otherwise.
On the day of your viewings, keep in mind that first impressions count! You want to make sure your property is presentable and clean.
At Grace Estate Agents, we ensure each applicant is vetted carefully prior to arranging a viewing to save time for both parties. Once all information is acquired and a viewing booked, we keep our landlords informed of the dates and times of these.
All interested applicants are put forward to the Landlord for them to decide.
Now you have found a tenant, see below the following steps we would take to complete the tenancy set up!
Holding Deposit
A holding deposit is a payment to a landlord or agent to reserve a property. It is equivalent to 1 week’s rent – use the below calculation to find out what it would be for your property.
Monthly rent x 12 ÷ 52 = Maximum Holding Deposit
Referencing
At Grace Estate Agents, we use an external referencing company called Rent4Sure who carry out 3 different types of referencing on our applicants. This includes a credit check, income check and Landlord check (if applicable). The cost of this is included in our fees, so there are no hidden charges!
Guarantors
A guarantor agrees to pay the tenants rent if they fail to do so. They will sign an agreement which confirms their responsibilities and when they must pay.
Usually if the referencing fails, a guarantor may be an option depending on the circumstances.
Agreeing tenancy terms
Once referencing is complete and you are happy with the applicant’s position, the next step would be to agree the tenancy terms. This would include the length of the tenancy, any special clauses agreed between the parties and what date the tenancy will begin.
We would then arrange payment of the first month’s rent (or any additional if agreed) and the 5 weeks’ deposit, minus any holding deposit paid.
Key Handover & Finalising the Tenancy
The final stage of the process would be to hand over the keys and sign all the necessary paperwork to include the following:
The deposit is then registered with the Deposit Protection Scheme (Custodial), and certificate is sent to the tenants. If you wish to register under your own scheme, then that is also a possibility.
Now that the tenancy is set up and in motion, how can our services benefit you going forward?
Many people forget that there is further work to be done after a tenancy has begun. Often, it is easier for an agent to deal with this on your behalf.
Inspections are important and we would advise carrying these out 3 months after the initial term has begun, and 6 monthly thereafter. These are provided in photographic form and records are kept for reference.
We have use of a Tenant Portal to report maintenance requests for every property which is included within our Fully Managed Service. This saves you dealing with tenant enquiries and emergencies and allows us to handle each problem efficiently.
Rental increases and tenancy renewals are also a beneficial part of our service.