TOP 10 RENTING TIPS FOR LANDLORDS
1. Employ a letting agent
Unless you are an extremely experienced landlord and have a considerable amount of free time a letting agent can make the process a lot easier and project the success of the investment. The Agent will find you good quality tenants, obtain all the necessary references and credit checks, draw up the lease correctly and make sure your back is covered legally. For a commission fee the agent will fully manage the property for you undertaking all communication with the tenants, dealing with any maintenance and repairs. Contact one of our Member Agents for more details.
2. Use a Mortgage Broker or Financial Advisor
Just like your car insurance you want to make sure you’re getting the best deal. A Mortgage Broker will help you decide on the type of mortgage you should be taking out and they can search thousands of different types of mortgages to find the best deal for your circumstances.
3. Tie down your mortgage
It should sound ridiculous but some landlords with property portfolios are porting there mortgage to fixed rates even if they are higher than the current rate being received on the variable mortgage. The last two years have proven you never know whats round the corner. Opt for the fixed rate mortgage to avoid being burnt should interest rates increase.
4. Pay as much mortgage as you can
Mortgage rates have dropped dramatically in recent months and many landlords will find their monthly payments have dropped providing a bigger profit margin. Use this margin to make bigger monthly payments on your mortgage freeing up more equity in the property. This will increase your value to loan ratio and make it a lot easier to remortgage should you be looking to raise a deposit on another property.
5. Upgrade your Property
This does not involve spending thousands of pounds installing state of the art kitchen units and surround sound speaker systems but making small upgrades can make a big difference to your investment. A fresh coat of paint or having the carpet shampooed will make the property a lot more attractive to potential tenants and even attractive a higher caliber of tenant who will keep the place tidy and pay rent on time.
6. Always have Plan B
It may be all fine and well at the moment however anyone’s luck can change. Explore al the avenues which will minimise the risk should you got through a spell of vacancy. Consider rental void cover and rental guarantee insurance, the premium may seem steep however it will be a lot less than the charges you could face if you go into arrears.
7. Look at the long term plan
Have you thought about how long you actually intend to keep the property. Is the capital to be for your pension or do you plan to sell in a few years time. Have a general plan of what you expect from your investment. Make sure you fully understand the Capital Gains Tax you will be liable when you go to sell. Make sure you are aware of all the terms in your mortgage and would you be hit with any early redemption penalties should you wish to free up the equity sooner than anticipated.
8. Build a relationship with your tenant
A happy tenant should mean a happy landlord. Make sure you have all payment arrangements agreed as soon as they enter the property. The most preferable payment method would be standing order of direct debit. Having a good relationship should insure full payment on time and even extend the period of the lease should they be comfortable. A tenant is not going to stick around if they don’t feel they are getting value for money.
9. Be realistic
If you are getting very little response to your advert it would indicate something is wrong. Make sure your advert has accurate information and it will certainly help if you can provide photographs or a video. This should help get more people through the door and get the property let quicker. If you are getting no enquires it may indicate you are asking for too much rent, be realistic.
10. Advertising
Let our advertising experts at FlatRentEdinburgh.co.uk help you to find that tenant. Our website has be specially designed to be user friendly and informative for all parties, unlike many sites we are specifically geared for Flats in Edinburgh. Our goal is helping the tenant find that ideal property they were looking for and helping the landlord secure the perfect tenant and maximise their investment.
TOP 10 RENTING TIPS FOR TENANTS
- Do your homework
Take your time researching the areas you are considering. Look at the local amenities. Shops, banks and schools. Check the bus service for the area, is it easy to get to and from work/university. Make sure that’s the area you want to live in.
- Take your time viewing properties
Don’t be rushed when viewing the property. Make a list of things to check prior to the viewing. Does it have a shower, gas central heating, double glazing etc. Take someone along with you. It can help to have a second opinion.
- Be careful who you rent with
Whether is be a life long friend or fellow student from university make sure details of all payments are agreed. Make sure all tenants are on the tenancy agreement so one person does not hold sole liability. The majority of tenant’s disputes are about money.
- Confirm all costs involved
Check with the agent and landlord what is covered with the monthly rent. How much is the deposit. Is there a factor charge. Also make sure you are aware of the fees you will be charged by the agent for the tenancy agreement.
- Try your luck.
Try and negotiate on the rental with the agent. You will either get a Yes or No. Its always with a try. At the same time don’t ponder with it too much as you will run the risk of losing the flat to another prospective tenant.
- Double check the inventory.
If there is an inventory with the flat check this with all the items and check their condition. You don’t want to be held liable for damage that was already there.
- Deposit Receipt
Make sure you obtain a receipt if you have paid a deposit. This deposit should be returned to you at the end of the lease on the basis no damage has been made to the property.
- Set up a direct debit or method of payment
Late payment will affect your references for securing future rented properties plus no agent or landlord will go out their way to help you if you don’t pay up on time. Payment is usually due a month in advance. A direct debit will save hassle.
- Report any problems as soon as they happen.
Don’t be scared to call the Agent if theres a problem, that’s their job! Whether it’s a leak from upstairs or the washing machine has stopped working. Report it ASAP. The sooner you report it the less distribution it will cause.
- Be a good tenant
Making payments on time and leaving the property in a tidy condition will give you good references from the Agent and Landlord for future renting.
Vacant flats in Edinburgh are hard to come by at the best of times! Particularly in the flats to rent in the city centre of Edinburgh. Some of these being by far the most lucrative flats in Scotland.
