Renting Out Your House, A Brief Overview
If you are thinking about renting out your house, whether a small one bedroom flat or a large family house, we can, in the first instance, arrange to visit your property to discuss the rental income you will likely achieve. Cobb Farr is a well established independent estate agent with offices in Bath and Bradford on Avon offering a professional and personal letting service to landlords and tenants alike. We also give advice regarding Energy Performance Certificates, Deposit Schemes, legal responsibilities, landlord insurances etc.
How easy is it to rent out your house?
Ensure your property is in good order, that you have a current gas safety certificate, a current Energy Performance Certificate, smoke alarms are fitted on each floor, a carbon monoxide alarm is fitted and electrics are in good working order. It is essential that the property is thoroughly cleaned before your tenant takes occupation – they will be responsible for cleaning when vacating.
Letting agent responsibilities
Cobb Farr will be responsible for advertising your property, carrying out all viewings, arranging referencing and right to rent checks, drawing up the Assured Shorthold Tenancy Agreement, protecting the tenant’s damages deposit using a government backed tenancy deposit scheme and issuing all relevant documents to your new tenant. Cobb Farr offer 2 types of service to meet the varying needs of their landlords along with a useful renting out your house checklist.
Mortgage and Insurance Requirements- check with your mortgage lender/insurers for any special requirements they may have with regard to renting your property. Tenants will be expected to purchase their own contents insurance but you are responsible for providing adequate buildings insurance. If you are letting the property furnished it’s a good idea to take out cover for that although you will need to let your insurance company know you are renting the property out as it will affect the premium.The landlord must also ensure the rental property is in a good lettable condition with current gas safety certificate, alarms fitted and that all electrics are in good working order.
There are legal and financial responsibilities as well as income tax implications for landlords to investigate when renting out your house in the UK, the government website has guidance and advice on how to rent: https://www.gov.uk/renting-out-a-property
As a landlord, you’ll have to declare your income and costs and keep all records, invoices, receipts and statements for up to six years. Depending on which rental income bracket you fall into, HMRC has different requirements, so it is wise to ensure you understand the difference between each bracket. If you aren’t a resident in the UK and use a letting agent for management you can get an exemption from HMRC so that the rent can be paid to you gross. When you come to sell, there are several reliefs that are available that reduce the amount of tax you may have to pay on any capital gain you’ve made on the property, including Letting Relief and your Capital Gains Tax Allowance. This can quite complex so if you need to know more regarding your income tax or financial responsibilities you are advised to contact the Inland Revenue.
Where and what to buy as a rental property
When thinking about where to buy your rental property, always think about the following factors:
• What type of tenant would be most suitable for this area? (eg families, students, professionals)
• How affordable is this area, given your budget?
• What kind of reputation does the area have and what are the local crime rates?
• How familiar are you with the area?
• What kind of job opportunities are nearby?
• Are there good transport links? If not, does this matter in this area?
• What are the essential services (e.g GPs, hospitals, schools etc) like in the area?
• What kind of shops and leisure facilities are nearby?
The city of Bath and the market town of Bradford on Avon provide a large choice of properties at a varying range of purchase prices for potential Landlords looking to invest in the rental market. Both places appeal to many different types of potential tenants as they benefit from good rail and road links, enjoy good reputations and job opportunities, many shops and leisure facilities as well as other local amenities. Not only are the yields from rental properties in both Bath and Bradford on Avon and surrounding area good, they also offer the potential for values to rise over a period of time.
If you are considering purchasing a property to rent and would like a rental valuation carried out or any other help or information regarding how to rent out your house, please contact Jenny in our Bath office 01225 333332 firstname.lastname@example.org or Jo in our Bradford on Avon office 01225 866111 email@example.com
To see rental properties currently available please visit cobbfarr.com/lettings