If you are thinking of going into the business of property rental there are a home extensions 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 can be a dangerous area for landlords, and it is important you do a good job of yours. They need to be well written so that they are legal and you need to make sure they do the job of protecting your investment. Some areas you need to take into account when setting out this agreement are; which type of tenancy suits you, and the review period and procedure for the rent amount.
There are several different types of tenancy. For most landlords and tenants a periodic tenancy works well. This means the property is rented on a month to month basis. The bonus 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 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 an empty flat on short notice. It is important you explore all the different types of tenancies before deciding on the one that is right for you.
Sometimes it will be necessary to raise the rent on your property to let. This can cause friction with your tenants but this will be less so if you have made it clear from the start that there will be a review of the rent every couple of years.
Collecting the rent is another area that can cause conflict between you and your tenant. You need to make sure that the method you decide upon is convenient for you but also for them. It may seem like the obvious answer to pick up the rent in cash if you live nearby but some tenants may consider this to be an invasion of their privacy. A direct deposit into your account may be a better option.
It can be very difficult to know exactly what to put into a tenancy agreement, especially if you lack experience. Drafting one can make renting your property a bit of a headache and you really dont want to get it wrong. Sometimes it may be easier to just take the task to an expert in the field.