Got Property to Rent? Consider These First

 

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Having a property to rent can be a great source of extra income while giving someone a safe place to live. But becoming a landlord can be a complex affair. So consider some of these first.

Tenancy Agreements and Contracts

A tenancy agreement is a contract that you need your tenants to sign. It lists everything they can and cannot do and how you expect them to treat your property. It should also detail how much they are to be charged and what is included in those charges. This can be a complex issue, and some tenants will need it for things like benefits. Firms such as Manfred Sternberg & Associates are experts in real estate law from both sides and can help you draw these up.

Think About What You Will Allow

When you hand the keys over to a tenant, you lose the right to control what happens inside that property. This is why a tenancy agreement is essential. You need to consider what you will allow a tenant to do. For example, think about whether you want pets on the property. Or whether you will allow tenants to smoke inside. These can seem trivial, but both can have a dramatic impact on your property by causing damage or even being a nuisance to the neighboring homes.

Does the Property to Rent Come with Furniture

Another major point of consideration is if the property will be furnished or unfurnished. You can generally ask for more rent per month with more things included. However, the tenant isn’t responsible for maintenance. And this means you will have to carry out gas and electrical tests on appliances. And ensure that all furniture complies with safety standards, such is the case with non-flammable sofa materials. Then there’s the chance they are damaged by the tenant.

The Costs that are Involved

Any honest landlord will tell you that it costs a lot to be one. There are always costs involved when you rent out a property. There are ongoing repairs and maintenance costs, modernization if necessary, and of course, you may still be paying the mortgage. But it gets more complex too. You will have to pay insurance fees, agency fees if you use one, and miscellaneous fees for safety and compliance certification. However, you may be able to offset some costs in the rent.

Your Legal Responsibilities

Aside from being a good landlord and making sure the property is well-maintained, there are also legal requirements when you rent to a tenant. And some of these will end up with fines, penalties, and/or jail time if you ignore them. Any appliances you supply must be certified and maintained, especially ones that use gas and/or produce carbon monoxide. The property must also be habitable in terms of safety, such as fire escapes, smoke detectors, and CO alarms.

Summary

If you have a property to rent, you can make some good extra money. But there are many things you need to be aware of, such as tenancy agreements, what you will allow, and legal issues.