Renting out your home: essential tips for new landlords

Renting out your property, particularly if it's your former and much cherished home, can be a nerve-wracking business. Here's how to ensure you present your property in its best light, find the right tenant and protect your biggest asset.

1. Check with your mortgage provider

If you have a mortgage on the property you want to let, you must contact your mortgage provider and obtain permission in writing before putting it on the lettings market. Failure to inform your lender could put you in breach of your mortgage conditions. You will also need the written consent of your freeholder or their managing agent if you are a leaseholder.

2. Presenting your property for let

Properties must stand out to even secure a tenant. If the interiors are drab and outdated, you will have to invest in at least a basic make-over to attract tenants. Remember, there is a wide choice of property available and would-be tenants will run a mile if you attempt to get the full market rate rent for a property that's in poor condition. Good presentation, whether the property is furnished or unfurnished is vital.

If the property needs decorating, go for neutral floors and walls which look fresh and bright. Ensure that appliances are in good working order - they should be replaced if in a state of dilapidation - and make any necessary repairs to doors, fixtures and fittings. Failure to bring the property up to an acceptable standard will mean that it will take longer to let, if at all, and you'll be forced to drop the price.

Apart from keeping the place in good decorative order, pet owners should think about leaving their furry friends with a friend or neighbour before showing potential tenants around. You may think your dog is adorable, but many people associate them with germs, hard-to-remove hairs and nasty lingering smells.

3. Finding an agent

Talk to two or three agents and compare their level of service and fees before appointing them. They will assess your property and set a rental price based on its size, location and quality. Check that your chosen lettings agent is a member of the Association of Residential Lettings Agents (ARLA), The National Association of Estate Agents (NAEA) or The Estate Agents Ombudsman Scheme (OEA). You also need to decide whether you want the agents to manage the property for you - i.e. be the tenants' point of contact for dealing with faults and problems - or manage it yourself. If you travel or work away from home frequently, it might make good sense to use your agent's management service.

4. Finding the right tenant

It's common practice to stipulate no pets and no smoking in the tenancy agreement, and you should discuss any additional issues with your agent. If you're a pet owner yourself, you may  be able to stand out from the crowd by offering a home for a fellow pet lover. But remember, not all pets are compatible. All reputable agents run a vetting procedure obtaining credit checks and references from employers and previous landlords to ensure that you find a reliable tenant. For an additional fee, lettings agents will also organize an inventory of contents and information on the condition of the property to be checked and signed by both you and the new tenant. By law, deposits equivalent to one month or six weeks' rent are now held independently rather than passed directly to you, the owner.

5. Furnishings savvy

Make sure the interiors are clean, shiny and fresh but don't be tempted to over-furnish the property. In the current climate, many people are either unable or are delaying buying their own home and the trend for tenants to rent for longer means that part- and unfurnished properties are more in demand. People have and want to move in at least some of their own furniture. If you are letting the property furnished, remember that less is more.

6. Play fair

If you're not taking them with you, put miscellaneous items and valuables in storage - your pictures and ornaments won't necessarily be to your tenants' taste and will be stashed in cupboards where they are more likely to get broken. Don't personalise the property - they're paying you for a home, not to store your knick-knackery or old junk!

7. Appliance care

It is your legal requirement to ensure that electrical appliances such as cookers and hobs, central heating systems and boilers have been checked and meet with health and safety standards. Gas safety checks must be carried out every 12 months by a CORGI registered engineer and a record of the checks kept for two years. Give your agent a copy of the record as they must issue it to any new tenants before they move in. And don't forget to check your smoke alarms.

8. Essential info for tenants

To make the move in easier for your tenant - and ensure that you're not barraged with phone calls, or face long delays in them setting up accounts in their name with utilities providers, create an info pack. List contact details of the local authority for council tax registration, gas, electricity and water suppliers. It's also helpful to provide information about car parking, and when refuse and recycling is collected. If you don't have the original manuals, make sure you leave written instructions on how to use the household appliances, boiler and central heating.

9. Tax matters

Don't forget that your rental income is subject to tax, details of which must be submitted on a self-assessment tax return to HMRC. The good news is that you can claim for expenses such as accountancy and legal costs and your lettings agents' fees. Contact your solicitor for details and further advice.

10. Insurance wise

You must also inform your buildings insurance provider that the property is let and update your contents insurance policy accordingly. Even if you are letting an unfurnished property, it pays to invest in contents insurance as this will provide you with a level of public liability insurance.

Sainsbury's offer a range of financial services including pet insurance, life insurance, savings accounts and personal loans.  Visit www.sainsburysbank.co.uk for quotes and more information.

04 February 2009