Are you considering becoming a landlord and letting several of the properties you own to others? There are a number of benefits to this, especially the opportunity for additional income, but there are a few things you must do before you can legally let a property. If you do not comply with these laws, you may find yourself being fined or your tenants may be able to bring suit against you for neglect. Here are some of the legal requirements you must follow before you can let your property.
Have Your Paperwork in Order
Letting a property requires a number of different documents to be prepared. If you are continuing to pay a mortgage on a property, the lender must provide in writing that you may let the property. Some lenders have specific clauses pertaining to letting and those clauses must be followed.
If you are leasing a property and want to let it, you must also read over the lease and note any clauses pertaining to letting. You will need a written letter from your landlord stating you may let the property to someone else before you do so.
Finally, you will need to check with your insurance company and make certain the policy you have covers letting the home and the furnishings to someone else. If you do not discuss letting with your insurance company, it’s possible your policy will not be honoured should something happen to the home.
Take Inventory
Many people provide furnishings for those who let the property, especially if they are letting to military members who are looking for a place to live for a short period of time. If you are leaving furnishings, you need to take a full inventory that includes the items and their present condition. Taking photos of the more valuable pieces is also a good idea. This will help you prove any damage should any occur.
Find a Management Company
Managing properties on your own, especially if you have several, can become very complicated. If you work with a management company such as the experts who operate http://www.baselets.co.uk/, you won’t have to worry about finding tenants. They will do most of the work for you, including helping you learn what you need to prepare to let a property and how to advertise your property online.
Learn About Required Taxes
Generally, the person occupying the property is responsible for paying the council tax. This means if you are moving out of a house and plan on letting it, you need to let your collection office know. If no one is letting the property, you will be responsible for the council tax. However, there may be no charge for a month if the home is unoccupied and is mostly unfurnished. You will want to learn how the local council views lets and taxes.
If you are a UK resident and are letting property, you must pay income tax on any rental income you receive to Inland Revenue. If you live outside of the UK, special regulations apply.