With the housing market continuing to struggle and property sales remaining flat, more and more home owners are considering renting out their home because they cannot find a buyer.
There is also evidence that people inheriting property, after bereavement, are increasingly looking to rent, rather than sell, for the same reason. Over the coming year more and more of these “reluctant? and “accidental? landlords could find themselves taking on tenants for the first time. Recent research suggests that one in three home owners are now considering this as an option.
Sheffield lettings specialist, Belvoir, is warning anyone new to residential lettings to be aware of the many pitfalls, including strict regulatory requirements, insurance considerations and tenant reference and checking procedures.
Rick Flay, who runs the Belvoir Sheffield office on Campo Lane, says:
“We are seeing an emerging trend in the market, with many home owners becoming reluctant landlords for a variety of different reasons. Some do not want to sell their property until the market recovers, others need to keep a house occupied and maintained because it is lying empty. But becoming a landlord, almost overnight, is quite a daunting task and that?s why we urge people to seek out initial free and impartial, independent advice from an expert letting specialist such as ourselves, before attempting to “go it alone.””
In addition to strict regulations covering compulsory gas, electrical and fire safety checks there are many other specialist rules to consider.
If a property is rented to three or more unrelated tenants, a HMO (Houses in Multiple Occupation) licence may be required. Rules vary from one council area to another.
If you are letting out a property you will also need to take out specialist landlord insurance, which is different to household insurance cover.
“It can be a minefield for the new and inexperienced landlord,“ says Rick
“It is important to consider what kind of tenant you want to attract, to ensure the right “fit” with the property. Are you targeting families, young couples, single dwellers, or retirees? If furnished, you will need to carry out a full inventory check before they move in, as well as extensive credit checks and tenant referencing.”
“At Belvoir Sheffield we offer a full end-to-end managed lettings service for both landlords and tenants, for any type of property, furnished or unfurnished. The first step for anyone considering letting out their own home, or that of a relative, for the first time, is to contact us for an initial, no obligation meeting at which we can go through all of the options open to them,” added Rick
Belvoir Lettings Agency Sheffield predicts that property rents will increase between 5 and 10% throughout 2011and the number of private landlords in the UK will increase by a further 50% in the next few years.
