When you let your
house out to tenants, there are plenty of ways you can protect your money and
your property to ensure that everything runs smoothly.
Checking the
reliability of a tenant
Obviously it’s preferable
to get reliable tenants in the first place.
Arguably the most
important thing is to ensure you get references for them. You should aim to
have testimonials from both their employer and previous landlords. If they are
a reliable, honest person, this shouldn’t be an issue.
It pays to be
cautious, which means you should feel confident to ask a prospective tenant to
provide contact numbers for their referees, and you then need to ensure you
call them to check their validity.
You should also make
sure you get three months’ pay cheques from them. Although this suggests they
are in gainful employment, getting a reliable third party to conduct a credit
check on them makes sense too.
If you don’t have the
time, it may be worth using a tenant referencing service where all the work’s
done for you. You can purchase a basic or more in-depth search, which will
include income checks, references from previous lets and their credit history.
Get your paperwork in
order
A Tenancy Agreement is
the most important document that needs to be agreed upon and signed by both you
and your tenant. It serves as a good point of reference for any issues which
might arise. You shouldn’t even consider letting your property out until you
have one in place.
Insure yourself and
your property
Even with the best
intentions, issues do arise when you lease property and the best way to be
prepared for any future problems is to get yourself insured.
Tenants can easily
fall into arrears with their rent, so it makes sense to protect your investment
should this problem arise. There are plenty of options out there and for just a
small amount of money each month, you’ll get peace of mind.
Rent guarantee
insurance means that if your tenant cannot pay on time, you will be completely
protected.
Buildings and contents
cover
Although you probably
don’t want to think about it, a property which is rented out may be damaged, as
might its contents. Rather than crossing your fingers that such things won’t
happen, it really makes sense to get landlords
buildings insurance and contents cover. You can get a policy which covers both, and
that probably makes sense as it’s less hassle and paperwork for you. Go to a
reputable company and do your homework to make sure you get the best deal.
Pick the right
insurance and you will be covered for all eventualities including accidental
and malicious damage, and theft. It will also give you protection if you have
periods when the property’s empty between tenancies.
Know what you need to
provide
Renting out a property
is a two-way process and it’s important to know that you are providing the
service that is expected of you, and that your property adheres to basic
standards.
If you search gov.uk
for landlords’ responsibilities, you will find a list that landlords should
abide by, such as ensuring a property is “safe and free from health
hazards”.
There is also a list
of fire safety regulations that help you understand what is required when
renting out a property.
