The decision to become a landlord should not be taken lightly. There is an increasing amount of responsibility placed on landlords to ensure that properties are safe for tenants to live in. Every landlord has a duty to ensure s/he are fully aware of the responsibilities.
Some issues to consider:
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The demand for rented accommodation in the area in which your property is located. There may be an oversupply of rented accommodation in your area which may make finding a tenant difficult
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Consider the cost of repairs and maintenance, covering mortgage payments when the property is vacant and letting expenses, such as professional fees
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The amount of rent you need to achieve in order to cover a mortgage and to cover any other costs
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The skills required to manage a property and to become a landlord. Knowledge of the appropriate legislation is essential.
Using Letting or Managing Agents
There are a number of ways in which to rent a property, ranging from a tenant-finding service to a full management service. You are required to pay for this service, however, many councils operate a Private Rented Scheme, which usually offers this service for free.
Permission to let your property
Depending on the type of property, permissions may be needed before a property is let. If there is a mortgage on the property normally the lender's permission is required unless it is a Buy-to-Let mortgage. It is important to check the terms of the mortgage. A leasholder of a property will need to obtain permission from the freeholder. Generally all leashold properties will have a clause regarding permission to sub-let the property, it is normally a formality to gain the freeholder's permission, however, in some cases it may be refused.
Insurance
A landlord of a property is required to have adequate buildings insurance to cover the risk of damage to the structure and permanent fixtures and fittings of a building. Insurance for rented property is generally more expensive.
Typically, the tenant is responsible for taking out contents insurance to cover their own personal belongings.