Before you dive into property investment, make sure that you know what to do. Having all the necessary information will make it easier for you to protect yourself and your properties.
To find out some of the things you need to know, check out the list of 5 essential things to do before leasing out your property.
1. Have all your paperwork ready
The first rule of renting out property is that it’s all about paperwork. Even if you have agreed verbally with a tenant, there should be a written contract.
The start and finish date of the tenancy, the amount of rent and the amount of deposit, the condition of the property before letting it out and requirements to bring it back in good shape at the end of tenancy should be clearly defined in the document.
Having all your paperwork organized and ready to go is key to leasing your house or apartment.
2. Make sure the house is in a good condition
A common mistake homeowners make is to neglect their properties once a rental agreement is signed, but it is your responsibility as the landlord to keep any properties you let out in good condition.
If you are going to allow others into your property to use it for residential purposes, you have to keep it and make sure it is in good condition for them.
3. Landlord insurance is a must
Landlord insurance is one of the most important factors for getting your property off the ground and making sure that your investment is protected. When you’re looking to get that rental property, don’t forget about landlord insurance.
Landlord insurance will give you peace of mind from a legal perspective. You don’t want to be responsible for your tenant’s belongings in case of theft, fire, or other incidents. Not only do landlords need insurance to protect themselves from liability issues, but they also need to ensure the safety of their tenants by providing a safe living environment.
4. Buy-to-let mortgage if you’re renting out
First-time landlords or existing ones looking to add a rental property should consider a buy-to-let mortgage. These can come with preferential rates and make it easier to let out properties.
The buy-to-let mortgage is the type of mortgage which allows you to purchase your own personal property and then lease it out for profit.
As a landlord, this type of lending will allow you to build up your equity and capital gain over a period of time, as well as to be able to make more from your investment properties through sheer volume.
5. Screen your prospective tenants carefully
One of the biggest mistakes new landlords make is not screening their tenants carefully to make sure that they are a good fit for the property.
It is important to check credit history, references, employment history and criminal records before agreeing on the terms of the rental agreement. If you have a good tenant, they will take care of your place, pay their rent on time, and treat the place like their own house.
Conclusion
If you do not already have your own property portfolio, that’s okay. You are not too late to get started either, as long as you follow the necessary steps to maximize your chances of success. This article has highlighted the 5 essential things that need to be done before leasing out property.
