September 8, 2010 | Author

Author Julie Hanson

1. Presentation
Even in areas of the country where demand is exceeding supply, a property must stand out to secure a good tenant. If you have a drab, outdated product then it will not maximise the monthly rental income potential and is likely to encourage the kind of tenants that could prove problematic. Good presentation is vital and if your property is in poor condition then it is worth investing in a basic makeover to attract tenants. Remember this initial investment will pay off in the long run.

Neutral colour schemes are sought after and can modernise a property easily.

Make sure the property is clean especially communal areas like bathrooms and kitchens

Repair any minor damage to fixtures or fittings and scuffs on walls

Ensure appliances, if supplied, are clean and in full working order

Maximise space and brightness in the rooms

If furnished, ensure that the furniture is not damaged or too outdated or that rooms are over-furnished – basic and neutral.

Make sure that the property smells fresh – damp, animal odours, strong smells are immediately off putting for a potential tenant.

2. Amenities/ Extra Facilities

It is also important in a competitive rental market to provide facilities that a tenant would require. Modern tenants are likely to require broadband access; a telephone line; satellite television and whilst you should not provide accounts in your name, providing the ability for the tenant to set up their own account is vital.

Even in an unfurnished apartment, it is recommended that you provide a vacuum cleaner and possibly some cleaning utensils for the kitchen. If there is a garden, then a lawnmower is always a plus.

It is worth understanding your potential tenants in order to assess what is appropriate to provide – for example, many city centre apartments are sought after if they are “dressed” meaning that kitchen utensils and crockery, cutlery etc is provided whereas in other areas or with other properties these “extras” are not required.

3. Competitive Rental Pricing

Whilst you are advised to make your property as attractive as possible to prospective tenants, you still have to be realistic on the achievable monthly rental income. Check out other similar properties available on the rental market in your area and be aware of the kind of tenants that you are hoping to attract.

Whilst it is more common for prospective tenants to put in an “offer” of the rent they are prepared to pay, you must still keep the asking rental price realistic otherwise your property will stay on the market unable to let. Ultimately you will need to reduce the price but will have lost valuable time and income whilst it was empty and being advertised.

4. Safety and Legislation Compliance

You have a moral and legal obligation to ensure that you provide a safe environment for your tenants. You must ensure that the property is well maintained and that there are structural issues that could cause harm to a tenant.

You must also ensure that you comply with current legislation as well as being well advised to comply with other available safety features that are not obligatory, to ensure that the property is safe for a tenant. These include:

Gas Safety Certificates
Portable Appliance Testing
Fixed Wiring Electrical Safety Tests
Energy Performance Certificates

5. Mortgage

If you have a mortgage on the property you want to let, you must contact your mortgage provider and obtain permission in writing before putting it on the lettings market. Failure to inform your lender could put you in breach of your mortgage conditions. You will also need the written consent of your freeholder or their managing agent if you are a leaseholder.

6. Insurance

Ensure that you advise any current policy providers that you intend on renting out the property. You must also let your buildings insurance provider know the property is being rented out and update your current contents insurance policy accordingly.

It is strongly recommended that, even if you choose to let your property unfurnished that you invest in contents insurance as this, as well as the obligatory buildings insurance, provides you with a certain level of public liability insurance.

It is also worth investigating, if your property is in an apartment complex, where your responsibilities and liabilities lie should there be any issues that affect other apartments.

There are also other Landlord Insurance policies that you may want to consider regarding rent guarantees etc and is it worth exploring what is available.

7. Vetting of Tenants

It is vital that tenants are thoroughly “vetted” before any tenancy agreement is signed. Ensuring that this is done correctly can negate many potential issues, especially rent arrears, once the tenants live in the property.

It is recommended that you ascertain their previous rental experience through their current landlord and, if possible, his predecessor as well as proof of that address by means of utility bills.

Obtain references from an employer confirming full time and permanent contract as well as proof of earnings. This can also be achieved via wage slips and it is recommended that several months are provided.

Obtain proof of ID through either driver’s license or passport. Finally a credit check is a good indication of someone’s history but be warned that depending on the circumstances of the tenant i.e. – been living abroad etc – you may have a great tenant that would not pass a credit check.

It is also recommended that you take details of their next of kin – this is a good idea for any emergency situation that could arise and also gives you another contact should there be any issues later on.

8. Deposits

It is recommended that you take at least a 5 week deposit from the tenant prior to moving them into the property. This deposit MUST be entered into one of the government deposit protections schemes within a given amount of time of receipt.

Taking more than one month’s rent as a deposit as well as the involvement of the protection schemes, tends to dissuade tenants from using the deposit as the last month’s rent.

9. Periodic Inspections

It is very important that you carry our periodic inspections of the property to ensure that the tenants are looking after it correctly and complying with the tenancy agreement.

A standard Assured Shorthold Tenancy will stipulate no smoking or pets and it is recommended that, even if you smoked or had pets in the property, that you do not allow the tenants to purely due to extra damage, albeit accidental, that could be caused.

You need to ensure that you do not infringe on tenant privacy (Right to “quiet enjoyment”) and give the correct notice before entering the property but checking the property quarterly will allow you to ensure that everything is going smoothly and, if there are any problems, they are unlikely to be unrectifiable.

10. Getting a good management Agent

Whilst you might be inclined, for financial or trust reasons, to try and manage your property yourself, unless you have lots of free time, it is highly recommended that you employ a good management agent to look after it on your behalf especially if you are not local to the property.

Landlords often underestimate how much time it takes to ensure a tenancy is running smoothly and even though tenants may be great at paying the rent and looking after the property, they can be very time demanding.

Use an ARLA (Association of Residential Lettings Agents) accredited agency and preferably one that specialises in rentals rather than a sales agent that does rentals also.

A good agent will provide you with a contract stipulating that they will ensure to provide a comprehensive service incorporating many of the tips in this article.

Speak to a couple of agents and compare services and price – remember that the cheapest is not always the best and as a general rule, any agent quoting a comprehensive service for less than 8% of the rental income per month is unlikely to be able to provide that service.

The agent should also be able to provide you with a comprehensive letting service in order to advertise and supply the tenant should you require this too. It is vital that this service also includes a comprehensive inventory of the property prior to tenant move in.

Thanks to Purple Cow Properties for providing this informative article.

Purple Cow Properties is a residential lettings and property management agent operating in the Greater Manchester area. http://www.purplecowproperties.co.uk/