Renting out your house can be a great way to generate extra income, but it’s not as simple as just handing over the keys and waiting for the rent to roll in. Whether you’re moving to a new location, exploring property as an investment, or just looking to cover your mortgage, setting the right rental price and finding good tenants are key to a successful experience. Get these things right, and you’ll be on your way to a smooth, profitable rental journey. Get them wrong, and you might find yourself facing months of vacancy or tenant troubles. Here’s how to do it right!
Step 1: Research the Local Rental Market
Before you can decide how much rent to charge, you need to know what similar properties in your area are going for. Researching the local market gives you a better idea of the price range that will attract tenants while ensuring you’re not leaving money on the table.
- Use Online Platforms: Websites like krispyhouse.com is a great place to start. Look for properties in your area with similar features—same number of bedrooms, size, and condition. Pay attention to how long these properties stay on the market; if something is lingering without tenants, it might be overpriced.
- Talk to Local Letting Agents: Letting agents can provide valuable insights into the local rental market. Many will offer free rental valuations, giving you an idea of what your property might achieve. Even if you plan to self-manage, it’s worth consulting an agent for their market knowledge.
- Check the Competition: Find out what’s available nearby and what makes your property stand out—or not. For example, does your house have a garden, off-street parking, or recent renovations? These features can justify a higher rent compared to similar properties.
By getting a clear understanding of the local market, you can set a competitive price that attracts interest without underpricing your property.
Step 2: Set the Right Rental Price
With your market research in hand, it’s time to set the rental price for your property. The goal is to find that sweet spot where the price is high enough to maximise your income, but not so high that it scares off potential tenants.
- Location Is Key: The neighbourhood your property is in can heavily influence the rent you can charge. A two-bedroom house in a trendy part of town might fetch more than a three-bedroom house in a quieter, less connected area.
- Property Condition: A well-maintained, modern home can justify a higher rent than a property that looks a bit tired. If you’ve recently updated the kitchen or bathroom, or if the house is energy efficient, these are selling points that could allow you to charge more.
- Seasonal Trends: The time of year can also affect demand. More people tend to move in the summer, meaning you might be able to charge a bit more during peak times. If you’re letting your property in winter, you may need to be a little more flexible with your pricing to fill the vacancy.
Once you’ve settled on a rental price, remember that it’s not set in stone. If you find that you’re getting no interest or lowball offers, you may need to adjust the price to align with the market demand. It’s better to reduce the rent slightly than to leave the property empty for months, missing out on income.
Step 3: Prepare Your House for Rent
Before you start showing your house to potential tenants, make sure it’s in tip-top condition. A clean, well-presented property not only attracts more interest but can also justify the rental price you’re asking for.
- Make Essential Repairs: Fix any issues like leaky taps, faulty wiring, or broken locks. Small repairs can make a big difference in the overall impression of your home.
- Deep Clean: Give the house a thorough clean or hire a professional cleaning service. Clean windows, carpets, and surfaces will make your property look more inviting during viewings.
- Consider Updates: A fresh coat of paint or modernising light fixtures can go a long way in making your home look more appealing. If you have a garden, tidying it up can also make a great first impression.
A well-prepared property can make prospective tenants feel that the home is well-maintained, which may lead them to treat it with the same level of care.
Step 4: Market Your Property Effectively
To attract quality tenants, you need to get the word out about your rental property. Effective marketing is key to finding the right tenant quickly and avoiding long periods without income.
- Take Quality Photos: Good photos are crucial to catching a potential tenant’s eye. Use a high-quality camera or hire a professional photographer to capture the best features of your home. Make sure each room is well-lit and decluttered.
- Write a Compelling Description: Include key details such as the number of bedrooms, location, nearby amenities, and any unique features like a large garden, en-suite bathroom, or recent renovations. Be honest, but highlight what makes your property special.
- Use Online Platforms: Listing your property on websites like krispyhouse.com can help you reach a wider audience.
- Leverage Social Media: Don’t underestimate the power of social media. Share your listing on local Facebook groups or community pages to reach people who are already interested in living in your area.
Good marketing can mean the difference between a quick, smooth rental and months of waiting for the right tenant to come along.
Step 5: Screen Potential Tenants
Finding the right tenants is critical to a positive rental experience. Proper screening helps ensure that you’re choosing reliable tenants who will treat your home well and pay rent on time.
- Conduct Interviews: Arrange viewings and use this opportunity to meet potential tenants. This is your chance to gauge whether they seem reliable, respectful, and compatible with the property.
- Request References: Ask for references from previous landlords or employers. This can give you an idea of the tenant’s rental history and whether they’re likely to meet rent payments consistently.
- Perform Credit Checks: A credit check can help you assess a tenant’s financial situation. There are online services that can do this for a small fee, giving you peace of mind about a tenant’s ability to pay rent.
- Verify Employment: It’s always a good idea to verify a potential tenant’s employment status. Ask for recent payslips or a letter from their employer to ensure they have a stable income.
Taking the time to screen tenants properly can save you from headaches down the road, ensuring that you find someone who respects your property and meets their financial obligations.
Step 6: Draw Up a Strong Tenancy Agreement
Once you’ve found the right tenant, it’s time to formalise the arrangement with a tenancy agreement. This document outlines the rights and responsibilities of both the landlord and tenant, helping to prevent disputes by setting clear expectations.
- Include Essential Details: The agreement should cover the monthly rent amount, payment due dates, deposit amount, length of the tenancy, and any rules regarding pets, smoking, or alterations to the property.
- Use an Assured Shorthold Tenancy (AST): In England, most landlords use an AST, which is the standard agreement for renting to tenants. It gives you the right to reclaim your property at the end of the agreed term, provided you give the correct notice.
- Protect the Deposit: By law, you must protect your tenant’s deposit in a government-approved deposit protection scheme within 30 days of receiving it. This ensures the deposit is returned fairly at the end of the tenancy.
A well-written agreement protects both you and your tenant, helping to ensure a smooth and professional relationship.
Step 7: Manage Your Rental Property
Once your tenant has moved in, the work doesn’t stop there. Managing the property well ensures that your tenants are happy and that your investment is protected.
- Set Up a Reliable Rent Collection Method: Direct debit is a popular option for landlords, ensuring rent is paid automatically each month.
- Be Responsive to Maintenance Issues: Address repair requests and maintenance issues promptly. A well-maintained property encourages tenants to take good care of it, too.
- Conduct Regular Inspections: Regular property inspections (with proper notice) can help you spot any issues early and ensure that the property is being looked after.
Good management keeps your tenants happy, reduces the risk of costly repairs, and ensures your rental property remains a valuable asset.
Final Thoughts: Successfully Renting Out Your House
Renting out your house can be a rewarding experience, but it requires careful planning and attention to detail. By setting the right rental price, finding reliable tenants, and managing the property well, you can enjoy a steady stream of rental income without unnecessary stress.
Remember, a little preparation can go a long way. Take the time to understand the market, make your property shine, and build positive relationships with your tenants. With the right approach, you’ll not only secure great tenants but also turn your house into a valuable and consistent income source. Happy letting!