More and more retirees are investing in properties to rent out. If you’ve never done this before you need to do your research before handing over the keys. JANE SLADE offers 10 tips
Deciding the price
• Check out the major property portals online to see what similar properties in your area cost to rent.
• If you don’t want to manage the property visit a few local agents’ offices. Ask them who your target tenants might be and how much they would pay.
• Draw up a shortlist of three agents.
Choosing the right agent
• Ask your potential agents how they find tenants, where do they advertise, what services do they offer in-house and what do they contract outside.
• Ask what rent your property might fetch both furnished and unfurnished and ask how they arrived at that figure.
• How much do the agents charge and what’s included (for instance, marketing or photography). Remember, you can negotiate on a commission fee.
Managing challenges
• Decide whether you will manage the property yourself, or employ someone else to do it.
• You need to react quickly if your tenant alerts you to a problem and someone needs to be on-call 24/7 in case of emergencies.
• Some landlords favour employing an agent so they don’t have to dash out to supervise the boiler being repaired at an inconvenient time.
• Do ask the agent what he charges for property management. You might choose to do a ‘selfie management’ to save money.
Kerb appeal
• It’s worth investing time and money into sprucing up your rentals property before wannabe tenants come round. Get the windows cleaned, shampoo carpets, jet wash paving and terraces, touch up paint and sort out the garden.
• Ensure everything works from the boiler, cooker and televison, through to lighting, alarm and locks.
• Check your insurance (including public liability), carry out gas safety checks (and electrical, to play it safe) and get an energy performance certificate.
Furnished or unfurnished
• Decide whether your property will be let furnished or unfurnished. You might want to be flexible and say it could be either – or even a halfway house (some furniture, but not all of it).
• Remove anything personal or precious – if you’d be desperately upset if something was damaged or lost then remove it.
• Draw up a detailed inventory. Check it carefully before you sign and take photos.
Marketing strategy
• Luring in the right people is vital. Ask the agent who’s most likely to rent your property and how is he going to contact them.
• Ask the agent what his marketing strategy is. Will he advertise your property and who will pay for it? Think about digital as well as print.
• Also, this is the time to voice what you don’t want. Are you refusing anyone with pets or smokers, for example.
Accepting an offer
• Choosing a tenant isn’t all about money. When an offer’s made, find out how long he wants to stay, whether he wants the property furnished and any other requests.
• You can negotiate over matters raised by a potential tenant. It’s good to be flexible – but equally, you can say no if you don’t like the sound of a demand.
• Your agent will check the tenant’s references. I would advise not going ahead until you can see these references/proof of employment.
Deposit and contracts
• Your agent/solicitor will draw up a contract for you and your tenant to sign. Ensure your agent includes any extra clauses from either side.
• Read the contract thoroughly before you sign. And take advice from the agent or your solicitor if you’re uncertain about anything.
• A standard deposit is usually the equivalent of six weeks rent. It is held with a tenancy deposit scheme or a separate account managed by the agent.
Keeping your tenant happy
• You will need to handle any calls from the tenant if there are problems with the property. Responding quickly to calls is advisable to keep the tenant on side. Also, a leak can turn into a flood if it isn’t dealt with quickly.
• If your tenant is making unreasonable requests (you aren’t required to go round and change a light bulb, for instance) you need to point out what you will – and what you won’t do.
• If you feel you cannot manage the property adequately, do talk to the agent who will take responsibility for managing the property – for a fee, of course, so you need to factor in the extra cost.
When it’s all over
• Usually, two months before the end of the contract you will need to work out the terms of the next contract (if indeed you’re extending it). Will the price go up or down, depending on market conditions, and do you want to amend any terms in the contract?
• If it’s time to find a new tenant talk to the agent about how he’s going to search for one.
• When your tenant departs this is the time to think about carrying out any maintenance required. The inventory clerk will check the state of the property and get your keys back from the exiting tenant.
