Guide to Letting a Property
Our comprehensive guide to
letting a property
Are you considering letting a property but unsure where to start? Enfields is here to guide you through the process.
Many people aspire to become landlords but feel overwhelmed by the responsibilities and legal requirements. With years of experience supporting landlords and tenants, Enfields can assist you at every stage, from choosing the ideal buy-to-let property to managing your lettings process efficiently.
Who Can Be a Landlord?
The simple answer is… anyone! If you rent out a property, you’re a landlord. However, you must comply with legal requirements to ensure your property is safe and suitable for tenants.
Do I Need a Licence to Let?
You may need a landlord licence depending on your location, as regulations vary across the UK. Check with your local council to confirm the requirements in your area.
What Are a Landlord’s Legal Responsibilities?
Before letting out a property, ensure it is free from health hazards. Additionally, you must:
- Ensure all gas and electrical equipment is safely installed and maintained.
- Fit and regularly test smoke and carbon monoxide alarms.
- Adhere to fire safety regulations, particularly for flats.
- Obtain and provide an Energy Performance Certificate (EPC).
- Verify your tenant’s Right to Rent (in England).
- Provide your tenant with a copy of the How to Rent Checklist.
- Use a government-approved scheme to protect the tenant’s deposit.
How Do I Determine the Right Rent to Charge?
Determining the right rental amount can be challenging. A common approach is to charge a percentage of the property’s value. Enfields can help you calculate a competitive and fair rent to attract tenants while maximising your returns.
Am I Required to Pay Tax on Rental Income?
Yes, landlords must pay Income Tax on their rental income, minus allowable expenses. If letting a property is considered running a business, you may also need to pay Class 2 National Insurance.
If you have a mortgage on your property, check with your lender for permission to let it. Some lenders may require a change to your mortgage terms.
What Expenses Will I Have as a Landlord?
Landlords are now responsible for covering several fees that were previously charged to tenants. These include:
- Inventory fees
- Check-in and check-out fees
- Referencing fees
- Administrative fees
- Cleaning fees
What Repairs and Maintenance Am I Responsible For?
As a landlord, you must maintain the property in good condition throughout the tenancy. This includes:
- Ensuring gas and electrical systems meet safety standards.
- Maintaining heating and hot water systems.
- Repairing the structure of the property.
- Keeping sanitary fittings, such as sinks and baths, in working order.
Ready to Let Your Property? Here’s What to Do Next!
Here are the key steps to letting your property. Enfields can assist with many of these or handle them entirely on your behalf:
- 1. Ensuring gas and electrical systems meet safety standards.
- 2. Ensure the property is safe by conducting safety checks, installing smoke alarms, and obtaining a Gas Safety Certificate.
- 3. Arrange landlord insurance.
- 4. Obtain an EPC and take utility meter readings.
- 5. Advertise your property to find tenants.
- Conduct a Right to Rent check.
- 7. Request tenant references.
- 8. Prepare and sign a tenancy agreement.
- 9. Secure the tenant’s deposit in a government-approved scheme.
- 10. Conduct and document an inventory.
Looking for Support with Letting a Property?
At Enfields, we’ve been helping landlords for years. Whether you need advice on letting, support finding the perfect tenant, or full property management services, we’re here to help every step of the way. Contact us today to get started!