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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.
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