If you already have an investment property, and you are looking to get a decent yield on letting it out, you can go out on your own or simply get an agency that will do the work for you. We are all busy to advertise, but it does actually make sense to consider letting your house out privately, provided that you take the right precautions. Below you will find a few tips on how to get started and avoid ending up in legal trouble.
Saving on Fees
One of the main benefits of not using a company is saving on agency fees. You will be able to get all the rent from your tenants. In fact, you can get everything arranged by a local solicitor. After all, you will not need your agent to tick the boxes and visit the tenants, unless there is an issue. You want them to feel secure and safe, as long as they pay. You will also not have to pay arrangement fees and the cost of contract renewal.
You might think that getting a tenancy agreement is hard. In fact, there are several landlord associations, such as RLA that offer this service at a low cost. You might even get a discount if you pay the monthly fee. It will cost you less than a hundred pounds to get the contract, and you might even use the in house tenant referencing and credit check service, so you don’t have to pay the surcharge applied by the estate agent.
However, you will be at a higher risk of losing your income if you let your property out privately. It might be a good idea to get a landlord insurance that covers the amount if your tenants are in financial trouble. Don’t’ forget about the legal costs, and cover them under the same agreement. It usually takes a few months until you can legally evict people from your property, not to mention the high court costs.
Just imagine that your tenants are having a problem with their heating in your property. If you have the agents to take care of this, you will need to get them to contact the representative that will send someone out to have a look and complete the assessment. As a contrast, if you have your own property management company on board, you call them and make a decision in just a few days.
You Choose Your Tenants
You might be influenced by the recommendations of the agents when trying to let your house out through their office. If you go private, you can choose your ideal tenant. If you don’t want single people or smokers, you will not be told that you will have to drop the price or change the layout. You can also communicate with people directly and listen to your gut feelings.
There are several benefits of letting your property out privately, provided that you have the right protection in place.