Rental Advice for 'Accidental' Landlords Wolverhampton

‘Accidental’ landlords offered rental advice A lettings agency has offered advice to help ‘accidental’ landlords.

Increasing numbers of property owners are becoming accidental landlords, as sellers struggle to sell their homes and choose to rent instead, according to Chesterton Humberts.

While this may provide extra income, Chesterton Humberts have advised anyone considering this option to plan carefully before rushing into finding tenants.

Richard Davies, head of lettings at Chesterton Humberts, said: “Choosing to rent your property instead of selling it can be a good option, but you need to think about the implications of doing so first.

“Before beginning the process, ask yourself if you really want to rent, or if you’d prefer to drop the asking price by ten per cent plus, and make a sale. This may not be ideal, but it could save you a lot of hassle and give you similar financial returns in the long run.”

Mr Davies recommends you consider the following before becoming an ‘accidental’ landlord:

Standards to meet: A number of checks need to be made before renting, including: making sure all furniture complies with fire safety regulations, electrical plugs, sockets and portable appliances are checked and the mandatory gas safety certificate (produced by a Corgi registered engineer) is produced to ensure all gas appliances are in a safe working order.

Laws apply: The AST (Assured Shorthold Tenancy) means that once tenants are living in the property, landlords are expected to honour a minimum tenancy. This could rule out a quick sale unless you are able to sell your property while it is being let. Landlords have to provide an Energy Performance Certificate (EPC) for rental properties in England and Wales; however they can be valid for ten years.

Suitable mortgage:Potential landlords must be aware that some mortgage lenders may require you to re-mortgage the property to a more expensive buy-to-let deal before renting it out.

Be realistic:Make sure the rental quote you receive is realistic and achievable. Dependent on the area, an increase in properties available to rent, could lead to you having to negotiate down on price.

Beware the tax man:Any income generated from renting your property is subject to income tax. Do your calculations first.

Think long-term:If you only intend to let your property until you can find a buyer, make sure the tenancy is set up this way. If not, you may find you become a landlord for longer than expected.

Ask for help:Speak to a reputable ARLA regulated agent who will be able to guide you through the legalities. There are a number of rules and regulations to follow that can potentially complicate the process.