It’s estimated that a quarter of households in the UK will rent privately by the end of 2021, which means the renting market is on the rise. This could be the opportune time for you to rent out your property if it’s something you’ve been considering. If you’ve managed to get yourself on the property ladder but still have the urge to move away or try something new, you’re not alone. The rental market is currently on the rise, as more people are considering long term rentals. There’s definitely an opportunity to benefit from this, so renting out your home could be something to consider.
Long term vs short term
Something to consider is the length of rentals you want for your property. If you live in a popular area that attracts a lot of tourists, then it might be worth considering short term holiday rentals. This works well if you have family or friends in the area who are willing to check in on your property and make sure things look okay week to week. You’ll also have to consider additional costs such as cleaning etc however the return on holiday rentals can make it an attractive option. Especially if you’d like the flexibility of controlling how long and when your property is rented out. The other option is long term rental, where you get a tenant to occupy your property over an agreed amount of time, such as 6 or 12 months or longer if things work for both parties. There is more security with this option as you’re guaranteed a regular income. This can be a big help if you’re renting yourself elsewhere and want the peace of mind when it comes to income. Whilst there are pros and cons to both options, it’s worth taking some time to explore your options to see what might work best for your personal situation.
Follow the right procedures
There can be a lot of stringent regulations when it comes to renting, so it’s important to make sure you have everything you need in order before you get into renting. Whilst it can be a bit time consuming, it does pay off getting it done early on. Not only will it save you a lot of headache further down the line but means you can be safe in the knowledge that you’re covered. Make sure you have the right insurance for renting out your property, landlord insurance does differ to your usual home owner policies so don’t forget to arrange this. You’ll also need to consider if bills will be covered by yourself or if you’ll be passing this onto your tenants. If this is something you’ll be handing over, then you need to make sure all your current energy suppliers know to address future bills to the occupier and not the home owner. To help get yourself organised and up to date with everything you need, there are resources available from government sources to help clear up any questions you may have around renting.
Private vs Letting agent
One question that is sometimes asked is, do landlords really need letting agencies? This is something that is likely to be a personal preference as there are positives to each option. If you decide to rent privately then you can avoid some of the costs that come with using a letting agent which can sometimes soon add up. You will however have to deal with the tenants directly, which might be something you’d prefer. This can work well if you know the person you’re renting to or feel comfortable dealing with things on your own. If, however you’re moving away and don’t have the time or resources to be able to check in on the property, using a letting agent can be a bit of a lifesaver and gives you the peace of mind that someone else is helping you. Yes there can be costs involved, but if this is the best option you have then it can be worth paying for the service to help you make the most out of renting your property.