Are you an accidental landlord? There are many reasons why you may have found yourself in the unexpected position of having to let a property. Perhaps you’ve inherited a home from relative. Or maybe you’re moving cities because of a job and now have to rent out your own home. Most commonly, however, is that property market prices have fallen, meaning a sale isn’t viable, and you’ve found yourself with no other option but rent out your property to try to cover mortgage costs.
Whilst this may be new territory for you, there is no need to panic – you’re not the first person to have found themselves in this position! Here we look at some tips that can help you make the most of this situation.
As a landlord, you now have obligations and tenants’ rights you must be aware of. As a landlord in Scotland, one of your priorities is to register with your local authority, whether you plan to rent the property yourself, or through a letting agency. You should also ensure any tenant deposits are held in a government-backed tenancy deposit scheme.
Be sure to check all gas and electrical appliances and the energy performance of your property. It is your responsibility to make sure the property complies with overall fire and building safety measures before anyone moves in.
Carrying out a full inventory will ensure that your tenant(s) are held accountable for any damage or loss to your personal property, so it’s well worth taking the time to do this properly.
To avoid any issues, prepare a tenancy agreement detailing who is responsible for what.
You should speak to your mortgage provider (if there is a mortgage on the property) and inform them that you will be renting the property out. You must also inform the home insurance provider, as standard home insurance will not cover you as a landlord. We recommend speaking to a company such as Simple Landlords, who specialise in Landlords insurance and will help you choose the right cover for your property.
Be sure to transfer all utilities (gas, electricity etc) into the name of your tenant(s), and ensure the tenant knows that they are responsible for paying these bills. If they would prefer to find their own supplier, make sure to cancel with your providers and detail this in the tenancy agreement.
Becoming a landlord – especially when you weren’t expecting to – can be a little overwhelming. Infiniti Properties are letting experts and can help you through every step of the process of renting out your property. Get in touch with us to see what we can do for you.