When it comes to Letting out your property, there are certain "Golden Rules" that will help you achieve the very best rental and attract the best tenants.
1)Professionalism. Use an agent that is either a member of A.R.L.A or the staff are individual members. A.R.L.A stands for the Association of Residential Letting Agents and is the regulatory body. Its members (Companies and Individual members) have to follow a strict code of conduct and abide by its code of best practice. The Association of Residential Letting Agents is now under the umbrella of the N.F.O.P.P that's the National Federation of Property Professionals.
2) Market the property at the right price. Have your property assessed for a realistic market rental. Agents occasionally over value in an attempt to gain your instruction, only to revisit weeks after instruction looking for a price reduction - thus wasting time on the market which equals lost income whilst its empty.
3) Choosing an Agent. There is no necessity to go on a "Sole Agent" basis, though some companies will offer a discounted rate for this. Its important to understand what each agent can offer and ensure you cover all marketing aspects. However, beware of overkill. If the same property is listed more than 3 or 4 times with different agents, it can put people off, they wonder whats wrong with the property and why the property is not renting! I suggest 2 or 3 agents is about right.
4) Internet marketing. You need to ensure your agent (s) offer you Internet advertising, Findaproperty.com, PropertyFinder.com, Globtrix.com, Primelocation.com, Findanewhome.com, Homesandproperty.co.uk, Rightmove.co.uk are just a few of the most popular portals. Statistics from Primelocation.com quote that nearly 1.7 million people a month view over 450,000 properties - and that over 80% of buyers and tenants search for property on line first. That's a big audience not to be reaching if your agent isn't maximising these.
5) Be flexible on price. If a tenant can move quickly and has good references, it may be worth negotiating to get the property let. Leaving it empty for weeks only eats into your annual return and could cost you more in the long run by leaving it empty in hope of the full asking price. Accepting a lower offer and getting tenants in and paying rent may be more profitable long term.
6)Presentation. Pay attention to the first impression. Tidy front entrance is essential, tidy any clutter and wipe down the door - if the paint is flaky, repaint! A front garden area should be tidy and well maintained. If its a dark entrance, ensure there is an outside light - especially on the shorter days when viewings may well be taking place in the dark. Once inside, ensure the property is well presented internally. If the property is empty, it can feel cold and unloved, so ensure the temperature is comfortable so people can look round comfortably, its the ideal opportunity to add a fresh coat of paint and have the carpets cleaned. Use some plug in air fresheners to keep it fresh and if you have just had the carpets cleaned, leave some shoe covers for the agent and the guests to slip over their shoes.
7)Furnished or Unfurnished? The demand recently has been more biased to unfurnished with most people having their own furniture, however there is a demand for furnished and your agents should advise you on this. Unfurnished normally includes kitchen white goods and curtains. However, if you are furnishing, remember you are obliged to repair anything that requires attention, so avoid leaving TVs etc. Furniture should be in good condition and ensure it complies with the Fire and Furnishings regulations. If you have inherited a property and you are letting it, remember that Aunt Polly's antiques, floral curtains and chaise lounge (as nice as they may be) are not going to help let the property, and depersonalisation is essential.
8) The tenants - Always ensure your agent fully references your tenants. A minimum expectation should consist of a) Credit check b) Affordability checks c) Employment references d) Previous Landlord or personal reference if no previous landlord. If they do not pass the affordability checks then look at taking payment upfront or using the option of a guarantor. If they have a guarantor, reference them as you would a tenant to ensure they are not over committing.
9) The Tenancy Agreement - Always ensure that this is drawn up correctly. Ensure your Agent has completed training on how to draw up an agreement - its surprising how many agents create the wrong sort of contract. Most commonly used are the Assured Shorthold Tenancy Agreement - but for rents exceeding 25K pa. this is a Non Housing Act tenancy. Something often overlooked. Ensure that the right notices are served and that the agent has clauses in the agreement that protect you. Your Mortgage company will probably insist in their consent to let that certain grounds are inserted, and sometimes prohibit certain types of let - so ensure your Agent is aware of these from the outset. This is a critical document and you need to read it with a fine toothcombe. Don't just assume because an Agent has drawn it up it is fine, check and double check before signing!
10) Inventories. Ensure you have a property Inventory and Schedule of Condition drawn up prior to the commencement of the tenancy, and that your tenants are checked in against this, sign and return it. It is essential when it comes to the end of the tenancy that you have something accurate to check the tenants out with. Any dilapidation's that you wish to deduct from the deposit need to be well documented as the tenants deposit now comes under Tenancy Deposit Protection (TDP) as bought into the Housing Act 2004 and enforced April 2007. If you go into a formal dispute the Independent Case Examiners (ICE) will require the inventory as evidence. A badly created document may cost you alot more money in the long run than spending a little extra and having it done professionally.
Finally, if you are thinking of letting out a property and would like to get in touch with me - please e-mail me sally@surreylettingsandpropertymanagement.co.uk or visit my website Surreylettingsandpropertymanagement.co.uk
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