Entering the buy-to-let property market can be an exciting business proposition, but it can also be a daunting time because of all the regulations that you are have to comply with.
Things you will need to consider:
Your buy-to-let property
If you’ve decided to rent out your own home, you will first need to check whether you need permission from your mortgage lender, the owner of the freehold if your home is leasehold or the joint legal owners of the property, if there are any. Some mortgage lenders will allow short-term lets on a regular mortgage others will insist that the property must be mortgaged on a buy-to-let loan.
If you’ve decided to buy property especially to rent out, make sure you know how much your lender will let you borrow and that you take into consideration the extra stamp duty that’s payable on second, or subsequent properties – it can make a significant difference to your financial outlay.
Whether it’s your own home, or a property bought purely to rent, it must meet stringent health and safety standards. As the landlord, you are responsible for making sure that the appropriate checks and risk assessments are carried out and that the property is fitted with suitable smoke and carbon monoxide alarms (see legal obligations).
You may decide that you don’t want to have the responsibility for the day-to-day management of the property. Letting agents can offer various levels of service, from a ‘tenant find only’ to a full management service. Which level of service you choose will depend on how involved you want to be in managing the property and how much you want to pay in fees. You will need to make sure that your letting agreement clearly sets out what responsibilities are with the agent.
Your tenant must be given a tenancy agreement including all the important points. Having a well drafted agreement can prevent a number of issues and will help if ever you find yourself in a position where you have to take legal action. If the property used to be your home, it’s wise to include a written notice under Ground 1 Housing Act 1988, stating that you may wish to return to live in the property. This will help should you decide to apply for repossession.
Need to get in touch with us?
How we can help
We want you to be able to make the most out of your investment and will offer you all the support and guidance you need to be able to make sure that your rental is compliant with relevant legislation. Our service can be completely tailored to suit your needs – offering as much or as little support as you want.
We offer advice and support on:
- Tenancy agreements
- Your legal obligations
- Notifying appropriate bodies
- Providing compliant documentation
- Registering tenants’ deposits
- Risk assessments
- Carrying out inventories
- Renting Houses of Multiple Occupation (HMOs)
- Notices and evictions
- Protecting your property
If you would like more information on how we can support new landlords, or you would just like a friendly, no obligation chat about your options, contact our expert team today.