The general idea and overall process of moving home can be somewhat daunting and most probably up there with one of the biggest, most life-changing decisions you’ll ever have to make. However, the many obstacles you will face along the way could result in either costing or saving you thousands of pounds, therefore we have put together a step by step guide of what to expect during the process of changing your humble abode and how to come to your final decision of whether you should either sell up or rent out your property.
This might sound silly, but it’s no trick question. The question you need to ask yourself is, are you entirely sure that selling your home is really what you want (or need) to do when moving home? If you’re looking to move due to lack of space, have you considered converting the attic or perhaps building an extension first? Although it may seem like the next step to take, sometimes selling your home may not always be the route to take. Whether it be your lack of income or if the market value of your property falls below the outstanding amount of a mortgage secured on it resulting in negative equity, selling your home may not always be possible. When selling up your home seems virtually impossible, letting out your home can be an effective alternative. Have you examined the advantages that come with renting your home out rather than deciding to sell? In a nutshell, have you considered all of your options before making your final decision?
There are a variety of questions you may initially have once you have decided that you will be renting out your property, particularly if it’s your first time. Researching into the letting market yourself may give you broader knowledge and better preparation on what you’re about to head into. Looking into the types of properties being let in your area and the monthly income they generate will also give you a more accurate idea on the range of prices you should be looking at in terms of your own. Here at Oscar and Hunt, we are able to help you explore the variety of options that may be available to you.
When renting out your home, it is vital that the mortgage lender is made aware. If you do not have a mortgage broker, you must directly contact your mortgage lender to let them know that you’re planning to let your home. Before you are able to proceed further, you will usually have to obtain something called a consent to let from your lender. If they refuse for any reason, you will need to switch the mortgage over to a buy to let mortgage. For more information and advice on mortgages, please contact London Finance Solutions on 020 8427 5057.
When making your property available for rent, you will firstly need to decide whether your house will be let either furnished or unfurnished. Ensure that you have removed anything from the property that is either fragile or valuable, to avoid any unnecessary accidents whilst your home is being let. It is important that any repairs on fixtures and fittings have been carried out prior to any tenants moving in and that all electrical appliances are in good, working order before anyone moves in.
Although it is not compulsory, using a lettings agent whilst renting out your property will cut out a huge amount of stress and labour from your end. At Oscar and Hunt, we take it upon ourselves to advertise your property for you, find prospective tenants and book in viewings to show them around their new potential home, draw up tenancy agreements and also deal directly with any enquiries and problems from the tenant. We usually charge around 10-15% of the monthly rental income you receive whilst also providing you with a guaranteed rental income, which is a small proportion for the valuable and potentially highly beneficial service you will receive.
Finding the right tenants for your property is important in making sure the overall timescale of the tenancy runs as smoothly as possible. You are able to meet potential tenants before any decisions are finalised, or you may prefer to leave it to us. At Oscar and Hunt, we use a systematic procedure to ensure that tenants are matched perfectly to specific properties, whilst also performing reference and credit checks on potential tenants to ensure we find the right ones for you.
Rent guarantee acts as a form insurance for landlords where, for a small annual fee, protects against loss of rent. In most cases, ‘Landlord Rent Guarantee Insurance‘ is combined with ‘Legal Assistance Insurance‘ whereby a landlord’s legal costs of recovering rent and/or evicting a non-paying tenant are covered.