1. Have you got the correct type of mortgage in place?
If you’re letting a property out, unless you have the luxury of buying the property outright, you will need to have a buy-to-let mortgage. Letting out your property on an owner-occupier mortgage may contravene the terms of that mortgage so if you already have a mortgage on the property, talk to your mortgage adviser about switching.
2. Have you got insurance?
Whether it’s buildings or contents insurance, you must have landlord’s insurance. Standard buildings and contents insurance won’t cover you if you’re letting out the property.
3. Have you considered all the financial elements?
There are a number of outgoing payments you will need to take into account, including:
- Mortgage payments
- Letting Agent fees
- Income tax (the rent you’re paid will be classed as taxable income)
- Any void periods
- Property factors fees
- Compliance costs
- Ongoing maintenance
4. What type of tenants you want to attract?
It helps to know what type of tenant you’re aiming for before you start looking, so you know how to market your property. For example, students will almost always prefer furnished properties, but families will usually prefer unfurnished properties – so it’s a good idea to know what type of tenant you’re aiming for before you start marketing your property.
5. Have you decided how it will be managed?
Generally there are two ways for you to manage your rental property and your tenant.
- Manage the property yourself. This will involve you in arranging all your compliance and safety checks, marketing the property, conducting viewings, selecting the right tenant, preparing a full detailed inventory including a schedule of condition, preparing a new Scottish government approved lease, collecting of deposit and rent, collecting ongoing rental payments, inspections, arranging all repairs (including the dreaded 2am call as the tenant has locked themselves out)…. Etc etc etc.
- Appoint a Professional Letting Agent. A good agent will remove all the stress and hassle associated with renting your property from you. Yes this will cost you money, however, it will be worth it in the long run and will bring you peace of mind that your property is being cared for.
6. Do you know how you are going to find your tenants?
The vast majority of property searches start online, specifically on the large property portals such as Right move, Zoopla, S1 Homes etc. If you wish to go down this route to attract the best possible tenant audience, it may be necessary to engage a professional qualified Letting Agent to market your property.
One Stop Properties manage 400 + properties for over 200 landlords from the UK and overseas. We market all our properties on all the main property advertising portals.
Talk to us about your requirements and we will help you make the best decision for your property management requirements.