Lease Renting Property
11 April 2002, 09:56 PM
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I rent some property, its all pretty simple.
Its worth using a reputable letting agency to advertise your property, broker the deal between the landlord (you) and the tenant, and draw up the contracts. Usual fee is the 1st months rent. The agency will also draws up an inventory of the property, and takes the deposit. Six month contracts are the norm.
Letting agents can manage the property for a percentage of the monthly rent. In my experience, if you are prepared to manage the property yourself, and live close enough to keep an eye on things, it is not worth the money.
If the letting agency draws up the contract, its worth letting your solicitor cast an eye over it to ensure it is watertight, although for residential property most contracts are fairly standardised. If you fancy having a go, you can even buy a standard letting contract off the shelf in WHSmiths.
Remember that you are responsible for all maintainance, and all items inside the property as listed on the inventory. If the telly, fridge and washing machine feature on the inventory and all blow up in the same week, it is up to you to replace them. The tenant is responsible for all bills, including council tax, gas, electric, water etc, as well as damage and deterioration of the decorating, gardens etc.
It is worth setting up a direct debit mandate to collect rent, it is far easier and more or less guaranteed. A visit to the property for a quick check once a month is reasonable, your tenant will not thank you for barging in to your house 4 times a week.
And don't forget to tell the taxman. Rent is classed as an income. Monies collected from rent is taxable, although interest paid on the mortgage (if you have one on the property) is tax deductable, as is any spendings on maintainence, agency fees, advertising etc. Improvements (eg new extension) are not. Best to speak to your accountant each year.
Hope this helps.
Its worth using a reputable letting agency to advertise your property, broker the deal between the landlord (you) and the tenant, and draw up the contracts. Usual fee is the 1st months rent. The agency will also draws up an inventory of the property, and takes the deposit. Six month contracts are the norm.
Letting agents can manage the property for a percentage of the monthly rent. In my experience, if you are prepared to manage the property yourself, and live close enough to keep an eye on things, it is not worth the money.
If the letting agency draws up the contract, its worth letting your solicitor cast an eye over it to ensure it is watertight, although for residential property most contracts are fairly standardised. If you fancy having a go, you can even buy a standard letting contract off the shelf in WHSmiths.
Remember that you are responsible for all maintainance, and all items inside the property as listed on the inventory. If the telly, fridge and washing machine feature on the inventory and all blow up in the same week, it is up to you to replace them. The tenant is responsible for all bills, including council tax, gas, electric, water etc, as well as damage and deterioration of the decorating, gardens etc.
It is worth setting up a direct debit mandate to collect rent, it is far easier and more or less guaranteed. A visit to the property for a quick check once a month is reasonable, your tenant will not thank you for barging in to your house 4 times a week.
And don't forget to tell the taxman. Rent is classed as an income. Monies collected from rent is taxable, although interest paid on the mortgage (if you have one on the property) is tax deductable, as is any spendings on maintainence, agency fees, advertising etc. Improvements (eg new extension) are not. Best to speak to your accountant each year.
Hope this helps.
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