If you already own a property in the UK, it’s possible to change the mortgage in order to allow you to rent it out. Research your local area and talk to agents to see what other similar properties are letting for.
Otherwise, if looking to purchase an investment, style and type of property is of less importance over location and surrounding facilities when it comes to ensuring high demand. New build properties are not always the least stressful, but the maintenance should indeed be less in the first few years, if you are thinking of buying a flat remember that the first years service charge is seldom very accurate so be prepared for a large hike in service charge in the second year once the actual expenses are known.
When renting out any property, there are a number of steps you need to action beforehand.
1. Inform both the mortgage lender and insurance provider of your intention to let the property (mortgage lender’s approval is vital)
2. Arrange an Energy Performance Certificate (EPC) prior to marketing the property
3. Appoint a suitable registered agent (with a professional body such as ARLA) to market the property,
4. Negotiate the offer and get references
5. Ensure the property is compliant with Health & Safety regulations (Including gas certification and an electrical inspection)
6. Arrange for cleaning, tidying and pre-tenancy maintenance
7. Prepare inventories, tenant check-ins and check-outs
8. Draw up a Tenancy Agreement
9. Inform the Inland Revenue and get approval to receive rent without automatic tax withheld
Letting a property whilst residing in another country can be difficult, especially when problems with the tenant or property arise. To reduce the hassle, expat landlords could opt to have their property managed.
A fully trained team would deal with every aspect of the tenancy from all the property preparations and legal administration to collecting of rent/deposit, dealing with problems as they arise with maintenance and repair work, carrying out regular property checks, dealing with tenancy renewals, serving notice and organising a tenant’s s checkout as well as negotiating any damages – dealing with these issues from overseas can be stressful. A typical property management fee is 5% over and above the letting fee”
