Landlords insurance information
How to Begin Letting Your Property
Being a Resident Landlord
Being a Non Resident landlord
Tenancy Agreements
Other Factors to consider
Finding a Tenant
Financial Issues
Further Advice
Grounds for Ending a Tenancy
Main Duties as a Landlord
How to begin letting your property
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The first steps that you need to follow are:
- Consider the different types of tenancy
- Choose your tenancy type
- Decide on the tenancy terms
- Find and choose a tenant
- Set out the terms of the tenancy clearly.
Additionally, you will need to think about issues such as informing your mortgage company, insurance company, and taxation. For further Information on these topics please click here.
When letting your property generally there are two types of tenancy which you can create.
- An Assured Short-hold Tenancy - This is the most common type of agreement used. If you do not give your tenant any written agreement they will automatically be an assured short-hold tenant.
- An Assured Tenancy
If you intend to let out only part of your home and still live in the other part of the property, you will be classed as a resident landlord. Again there are two types of tenancy which you can create:
- An Excluded Tenancy
- An Unprotected Tenancy
It is important to remember that when you let your property you are letting someone make it their home in exchange for rent. Although it is still your property it has become the tenant’s HOME and they are therefore entitled to ‘quiet enjoyment’ of it.
If the right to ‘quiet enjoyment’ is respected and the legal framework is followed, problems will normally be prevented and letting can be a profitable business.
Being a Resident landlord
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A resident landlord is someone who lets out a room in their own home to raise extra money.
If you are thinking of renting out a room you need to understand your rights and those of your tenants.
Excluded tenancy
You and your tenant live in the same house and share living accommodation (such as the kitchen, bathroom and toilet) with them.
Unprotected tenancy
You live in one part of your property and the tenant in the other but you do not share the kitchen and bathroom.
Lodgers/Licensee
You provide your tenant (licensee) with a room and use of the bathroom and the kitchen and provide them with meals. You can also provide them with services such as cleaning the room and doing the laundry.
Even if you are a council or Housing Association tenant, you should still be able to rent out a room, but it is important to check with your council or Housing Association.
If you own the property and are mortgage free, you do not need permission from anyone to let rooms. If you are leasehold, you can let out a room in most circumstances, but it is important to check the lease to see if you need permission. Likewise if you have a mortgage, check with the lender before letting the room.
Tenancy Agreements for being a Resident Landlord
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Once you have found a tenant it is best to make out a tenancy agreement with them. You do not need to fill in any special forms, but it is best that you make an agreement in writing. This will help you if there are any problems later. There are some basics which should be included in your agreement
- How much notice you must give the tenant
- How much notice the tenant should give to you
- How long is the tenancy is for
- Which rooms are being let
- Which facilities are being shared
- How much the rent will be paid
- Does the rent include bills?
- When the rent is due
- How should rent be paid (cash, cheque, direct debit etc.)
- Is the deposit payable when the tenant moves in and when it will be returned
Both you and the tenant should sign the agreement.
Being a Non Residential Landlord
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Letting out a whole property
If all or part of your property is empty then letting it out all can provide additional income. It is not as simple as some people think.
What considerations should I have?
Historically some people were reluctant to let out their property because of rents being low and because of the problems of getting difficult tenants to leave. The Housing Act 1996 has made it even more straightforward for landlords to create tenancies and get their properties back. This coupled with a rampant housing market has led to an energetic ‘to let’ market.
However there are legal rights and obligations attached to becoming a landlord. It is important that you make yourself aware of these conditions when letting property. This guide explains the basic steps you must take to protect yourself and to ensure that you let the property effectively to avoid any problems arising.
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