Renting out your property can be an excellent way to supplement your income or pay your mortgage off more quickly, but it’s not a case of simply opening your door and inviting anyone in. There are a lot of different things you want to think about before considering property rental, from tax to tenant amenities.
Find out more about the potential pitfalls and brilliant benefits of renting your property with a variety of excellent online resources.
Things to think about before renting
Whether you’re thinking about inviting a lodger into your home, you have a second property you’d like to rent out or you’re considering entering the buy-to-let market, you’ll want to investigate exactly what being a landlord entails. There’s a lot more to the job than simply collecting rent and it’s up to you to make sure that you’ll be able to meet the responsibilities.
The best place to get an idea of these obligations is on the Gov.uk site, where you’ll find a comprehensive guide to landlord responsibilities. On the same site, you’ll also find and excellent collection of different resources all centred around renting out your property and being a landlord. When choosing to rent out a property that you won’t also be staying in, it’s crucial that you’re confident that you’ll be able to cover the mortgage with your rental income. Investing in being a landlord only makes sense if you’ll be able to cover your costs and enjoy a profit.
If you do decide to rent out your property, you’ll need to take tax into account. The money you earn on rental properties is taxed but the amount depends on several factors, including how much you make, whether you’re renting out an entire property or a room in your own home and whether you own foreign properties. To get a good handle on how much you might be expected to pay, have a look at the Which? article on property tax and rental income.
How to get your rental plans started
To get a good idea of the kind of things you need to do and also some of the things you can look forward to if you choose to enter the rental market, read the landlord guide created by Money.co.uk. It’s got some great advice for helping you get started, from speaking to your mortgage lender to finding an agent and sorting out insurance.
For a good introduction to the processes and a no nonsense guide to some of the things you’ll want to bear in mind, turn to The Guardian’s how to rent your property article. Rightmove also offers and excellent selection of resources for new landlords, including articles explaining yield growth and capital gains as well as advice for managing a letting. And if you’re thinking of entering the buy-to-ley market, it’s well worth spending some time looking at the article put together by the Channel 4 team in its property buying section. Have a look at your property and your financial portfolio and see if renting out your property is the right move.
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