Properties22

Advice for both sides on the letting or rental market

Landlords:

1 Be realistic about how much rent you can charge: you will be competing with a growing number of landlords in the same position as you. Ask too much and the place will lie empty.

2 Make sure your property is in tiptop condition: people renting a family home will tend to be more demanding than sharers.

3 Be prepared to remove your furniture – unless you are aiming for the short-term lettings market.

4 If you are letting out a family house, be flexible. Don’t impose restrictions on children, dogs and other pets, and then wonder why nobody wants to rent your place – especially in the countryside.

5 If you’re still hoping to sell, make sure the tenancy agreement has a break clause and allows for viewings – usually with 24 hours’ notice. Keep on good terms with the tenants and gently suggest you would appreciate their help in making sure the place looks its best when prospective buyers call.

6 Become familiar with all your legal obligations and make sure you or your agent are signed up to a tenancy deposit protection scheme. Consider joining a reputable landlords’ association.

7 Inform your mortgage provider you will be letting out the property and consider shifting to an interest-only loan. This will allow you to offset the full amount against rental income. Seek expert advice on other tax-deductible expenses. These include repairs – but not improvements. “Repainting a wall is tax deductible. Putting in a new kitchen is not.” says Ian Potton, operations manager at the Association of Residential Letting Agents.

8 If you let out what was your primary residence for more than three years after you’ve moved out and then sell, you will be liable to capital-gains tax – levied at 18% – on some of the gain.
Visit all your local agents and research thoroughly online. There is still a lot of dross out there.

Tenants:

1 Visit all your local agents and research thoroughly online. There is still a lot of dross out there.

2 You don’t have to accept the advertised rent – try haggling.

3 Read the rental agreement carefully and watch out for any restrictions or hidden fees.

4 If you plan to buy, make sure there is a break clause that allows you to move out quickly.

5 Think about which furniture and other effects to bring with you and what to put into storage – and make sure it’s well labelled.

6 Don’t get too attached to the property – although if you do, you might even be able to buy it.