Thinking of putting your Canary Wharf property up for grabs? That might be one of the wisest decisions you might make since London property prices and mortgage rates are going up at a staggering rate, but before you go ahead there are quite a few things that need to be kept in mind. For example, when renting out a property in Canary Wharf, it is best to consult professional Estate Agents in Canary Wharf who have specialist knowledge of the demand in this area. However, if you already have experience of renting out a property, read on below to take a refresher course as to what important steps need to be taken before making the big step.
An unwise choice or lack of attention to detail might rob you of a golden opportunity or land you in the wrong place so you make sure you follow all of the safety precautions necessary. Below are some precautions you should take.
Get your property in order:
To firstly be able to rent out your property, you need to take care of all safety and health hazards that might be present. You have to make sure all unsafe conditions are kept out of the way like a faulty switch, an exposed live wire or anything similar that may be hazardous. While renting your home out, having these hazards can have legal repercussions and you might be putting someone’s life at risk. The very first step of successfully renting out your property is to take care of all the risk factors, then focus on the income.
Moving forward, the next step is to make the place look aesthetically appealing. Painting the whole apartment or space and making sure that all electrical and gas equipment is in working condition will help you on your way to scoring a good tenant. Always remember, the more you invest in your property and the amenities that the guests will be getting by staying there, the more rent you will be charging them.
Choosing the tenant:
One of the most important aspects of keeping your property in good condition, while it is under someone else’s care for whatever reason is to pick someone reliable. A thorough background check and vetting are required before handing over your property to any stranger. You can either hire a professional company to carry out the job for you or do it yourself by checking their information online and by calling their references and past residences. If you intend to rent your property commercially, i.e. to a business or a company, it advisable to have professionals investigate the company as a personal search may not be as effective or reliable. You can, however, as mentioned above, do your homework by calling their references and such but leave the nitty-gritty to the professionals.
Getting financial responsibilities out of the way
It is a part of the local law to pay tax on the property that you are renting out. If you are a basic rate taxpayer, then the amount of tax payable is 20% on the total rental income. However, if you are a high rate taxpayer, then the amount of tax you need to pay is 40% of the total rent. Before you rent out your property, you need to make sure that after getting the taxes out of the way and the maintenance is dealt with such as repairs, you are left with a suitable amount of funds left for back-up. If your expenses and income only break even, then you need to reconsider if renting out is a viable option for you. Ideally, you need to have some back-up money saved in case of a significant emergency repair, for example; boiler repair, replacement or anything of that sort. Although it is not a prerequisite or a vital step to take, it is better to take precautionary measures and save up. The amount saved from rent should be able to keep you afloat in-between tenants if you are not working.
Mortgaged? Take the extra step
If your property is still mortgaged, you are obligated by the law to seek permission from your mortgage lender whether you can lease out your property or not. If the mortgage lender is not kept in the loop, you might be breaking the contract and making way for trouble. While it may sound scary, there is nothing to be afraid of. Renting out mortgaged properties is a fairly common practice, and by going through the right channels at every step of the way, you should be good to go. Though you do need to get a ‘consent for lease’ from your mortgage lender before renting out your property, so make sure to do so.
Finding the right dealer for your property
While you may think of going your way when renting your property, there is quite a bit that you may miss that hiring professionals will take care of. People of the industry will inspect the property you intend to rent; they will be able to weed out reliable and flaky tenants for you, they will also effectively market your property, attracting prospective tenants with the best rates. Additionally, the biggest bonus that comes with hiring estate agents is that you do not have to take care of all the paperwork and various technicalities. From the comfort of your home, you can rest assured that the project will be carried out in the best way. Do not know any good local agents? Talk to friends or family and go by recommendations, it is not necessary to hire the first one you talk to. Search the market and find someone who understands your needs and who you feel comfortable with.
If you are unable to find anyone via recommendations, the next best thing is to hop onto the internet. You can find a competent and reliable company in no time, provided you check their credentials and details.
By following the above-stated steps, you can make renting experience relatively stress and hassle-free!