If you are thinking of going into the business of property rental there are a few things you need to make sure you are aware of. Even after you have gone through the difficult process of choosing tenants, there are still things you need to be cautious about. You need to make sure you have a good legal rental agreement. It may even be worth getting one drafted by a solicitor, though this can be expensive. Make sure you have also put some thought into how you will collect the rent.
Rental agreements are a vital part of property rental and yet so many landlords get them wrong or worse still fail to provide one at all. Don't fall into this trap. Make sure you give the tenant a copy of your rental agreement and make sure it is well written. That way you can be sure they do the job of protecting your rights and your investment. There are quite a few different areas to consider when drafting one of these so it may be best to consult someone who knows about them.
A periodic tenancy is often preferable for both landlord and tenant in the renting of houses and flats. This usually means the property is rented on a monthly basis. The advantage of this for you as a landlord is that to finish an agreement with a tenant you need only give written notice thirty to sixty days in advance of when you want the tenancy to end. It is important to keep in mind though that this means the tenant who is renting your property also has the same right, which could leave you with a vacant house with little warning. It is important you investigate all the different types of tenancies before settling on the one that is right for you.
You need to also make it clear to your tenant in your agreement when the present rent structure will be reviewed. This will make it easier when the time comes to raise the rent in line with inflation or due to any improvements you may have made on your property to let.
Collecting the rent is also another area you need to be very clear on with the person renting your property. You need to make sure that the method you decide upon is best for you and the person renting. It may seem like a good idea to collect the rent in person if you live close but some tenants may not like their privacy being disturbed like that. A deposit into your account may be a better option.
It can be very difficult to know exactly what to put into a tenancy agreement. Drawing one up can make renting your property a bit of nightmare if you have not done it before. Sometimes it may be easier to just take the task to an expert in the field.