With average rental yields at 6.7%, according to an NLA survey, and property price falls of up to 5% over 2012, the appeal of lets will grow over 2012.
David Salusbury, NLA chairman, said: “Letting a property can be a rewarding experience and an effective way of providing additional income, but prospective landlords will need to remember they are effectively starting a small business. They must ensure they are well aware of the rules and regulations governing the letting of private residential accommodation.”
The NLA compiled a list of tips to pass on to clients thinking about becoming landlords for the first time.
Tips
• Provide a proper tenancy agreement, usually an Assured Shorthold Tenancy (AST) agreement that you and the tenant sign. This will outline the length of the tenancy, amount of rent, when it is to be paid, and deposit details
• Protect the tenant’s deposit with a government-authorised scheme, such as mydeposits
• Create a co-signed inventory describing the condition of the property in detail, along with the furnishings
• Have gas appliances checked annually by a Gas Safe registered engineer and provide the tenant with a Gas Safety Certificate
• Take out comprehensive landlord insurance to protect your property
• Ensure urgent repairs are fixed promptly. Use reputable tradesmen that you know and can trust to tend to the property at short notice.
