Speak to your lender - your mortgage lender needs to know you are renting out your home. Some lenders will allow this but the majority won't. Speak to a buy-to-let mortgage broker such as The Money Centre who can help you change your mortgage over to a buy-to-let mortgage to be on the safe side.
Insurance - you need specialist landlords insurance on your property when renting your property out to tenants, at least buildings if not contents as well should you have it rented out furnished.
Tenancy deposit scheme - this is now a legal requirement. For all tenancy agreements that started on or after the 6 April 2007 landlords are required to protect their tenants' deposit using one of the Government Authorised schemes. Within 14 days of receiving the deposit, the landlord is required to inform the tenant of how it is protected. There are three schemes to choose from.
Gas certificate - this is a legal requirement. You will need a new Corgi certificate each year, a copy must be left with your tenants for their records. Contact a certified Corgi registered gas engineer.
Energy Performance Certificate - effective from the 1st October 2008, landlords will have to make an energy efficiency performance certificate available to prospective tenants as part of the lettings process.
The certificate, which will be valid for 10 years, rates the energy efficiency of a property on a scale of A-G, and makes recommendations for improvement. The most energy efficient homes are in a band A.
Landlords will not be under any obligation to follow any recommendation in the EPC or carry out work in improve the energy efficiency of their property. However, it is worth considering that tenants may use the certificate to help them choose which property to rent, making higher rated properties more desirable.
The EPC is required by law when a building is constructed, sold or put up for rent. EPC's can only be produced as a result of a survey by an 'accredited' Domestic Energy Assessor. They are used to collect standard information on the property including its size, how it is constructed and its hot water and heating systems. There are a wide range of companies qualified to produce EPC's.
Tax return - as a landlord you are now running a business, you will need to complete a tax return. Any good accountant should be able to advise you and help you with the paperwork involved. Inland Revenue can come after you years after you may have stopped renting the property or even sold it so don't forget this tip!
For new tenants, even before signing the lease or moving in, ask the landlord for a copy of the property's energy performance certificate. These are required under new government rules, effective from 1st October 2008 and list the energy rating of the property, giving an indication of how much gas and electricity bills will cost. With energy costs seemingly escalating on a monthly basis, making sure you are moving into an energy-efficient environment should be top of your list.
Once everything is to your satisfaction and you have signed the lease, make sure that you complete an inspection of the property on moving in, accompanied by the landlord or his agent. Note the meter readings, highlight any deficiencies and make sure that any damaged fixtures or fittings are noted. Whilst this may seem like an obvious task to perform, it is also one that can easily be forgotten. Doing this, however, is likely to prevent you from being charged for any damages caused by the previous tenant.
In addition, it is a good idea to test that everything works while the landlord or their representative is in the property. Check all the taps, the heating, the lighting and anything else for which the landlord is responsible are all in full working order and if not, ask that they are repaired.
Now you are happy to move in, it is then time to bring in your possessions. And if you do not already possess , now would be a good time to buy it. However, it is important to understand that whilst the landlord will be responsible for buildings insurance, any personal possessions cover will invariably be your responsibility. Therefore, whilst it is considered good practice to check what insurance cover the landlord has, you will need to take out your own insurance to cover your own possessions.
Of course, buying contents insurance is not obligatory for a tenant, it is a personal choice. But, do think about it carefully; could you afford to replace your entire contents in the case of a disaster such as fire or theft?
After you have moved into the property, any or all deficiencies have been noted, the property has been snagged and your personal possessions are moved in, it's then time to celebrate and open a bottle of bubbly and invite your friends round to your new home.
Both Karl Hopkins & Daniel Collins are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.