If you play cards rightly, being a landlord really can be a worthwhile experience and a good method to earn some money. Nobody wants the landlord or tenant from hell, therefore, be ready to do your complete homework before you opt to rent out your property. You have to determine market’s rent, which will be based on quality and location of your own property and amount of identical properties that are available for rent. So, here is a checklist for the prospective landlords:
1. State of your property
Before you take a decision to rent the property you should make sure that the property complies with minimum standards of the law (example free from damp, cold and hot water, in good structural repairs, adequate means of ventilation and heating, appliances in excellent working order, gas, pipes, electrical wiring, in good repair condition).
If your property appears like it is well looked after, it is probable that your tenants also will treat it in the same way with respect and finally, the property will remain in a sensible good state.
2. Indicators of prospective tenant’s capability to pay rent.
- Attain references from your potential tenant’s previous landlords, if any.
- Attain reference from your potential tenant’s employer.
- If your potential tenants are students, then you should get their parents always to act as guarantor to lease.
3. Interview: be careful to not discriminate.
When you’re satisfied with your potential tenant’s capability to pay rent, it’s time to interview. Be careful with questions you ask since equality law prohibits from refusing to provide accommodation or from ending a tenancy on the following 9 grounds: gender, family status, marital status, religious belief, sexual orientation, age, race, disability, membership of traveler community. You must base your decision on the merit of the potential tenants.
4. Contents list and Lease
You should take photograph of your property along with its contents. You also must make a complete list of the contents that can be included in your lease. Once you’re happy with the lease you can ask your tenant to sign it.
5. Landlords’ responsibilities
(a) Offer your tenants with the rent book.
(b) You should not charge rent which exceeds the market’s rent for the property.
(c) You should provide your tenant with 28 days prior notice of rent review.
(d) You must repair and maintain structure of premises.
(e) You must repair and maintain interior of the house to the standard that existed at beginning of tenancy.
(f) Reimburse tenant for expenditure on repair that must have been done by you.
(g) Offer the tenant with all the information about any individual who is authorized to deal with them on your behalf.
(h) Allow your tenant to enjoy exclusive and peaceful occupation.
(i)Serve your tenant with a suitable termination notice.
6. Your rights as landlords
(a) Receive the right rent on due dates.
(b) Receive other taxes or charges as they are due in line with the lease terms.
(c) Annually review the rent.
(d) Review rent within one year if it is justified by substantial changes in nature of accommodation
(e) Terminate a lease.
(f) Receive notifications of any repair required and allow access to perform repairs and for routine inspection
(g) Repair damages resulting from tenant’s actions and get the cost from your tenant.
(h) Decide on whether to allow tenants to assign, alter, sub-let, change or improve the use of property
7. Grounds for terminating your lease
You can end a lease which has lasted lesser than 6 months even without providing any reasons.
You terminate any lease which has been in existence for over 6 months due to the reasons including:
(a) Your tenant has failed to obey with the obligation of lease.
(b) You aim to sell your property within next 3 months or so.
(c) The property no longer is suited to the requirements of occupying household.
(d) Vacant possession is needed for substantial renovation of the property.
(e) You need the property for any family member or for yourself.
(f) You aim to change the usage of the property.
It is very significant to be alert that your tenant is free to terminate his or her tenancy any time; however, they must provide you the notice time in writing.
8. Rental Agreement
Having a loophole-free and strong lease agreement probably is the most imperative aspect of maintaining long-term and good tenants who will treat your property in the manner it deserves (or pay the cost if they don’t do so). Don’t skimp on an excellent lease agreement; when you can write using samples from many other places, ensure that you first get it reviewed completely by a local lawyer who is well-known with all details of the local landlord-tenant law completely so that there is no scope for errors.