As rent prices continue rising amidst a lack of rental supply, now is the perfect time to rent out your property. Aspiring UK renters are struggling to find rental properties due to the modest rental supply. High-interest rates, and consequently mortgage rates, have significantly impacted the housing market. This has resulted in fewer people buying houses and, therefore, more opting to rent. The limited rental supply is making it increasingly difficult for would-be renters to find accommodation, leading to increased rent prices.
In addition, high inflation rates are also stretching the rental market. Many landlords are trying to keep up with the increased competition for available rental properties and the rising cost of living by increasing rental prices.
That said, this is an excellent time for property owners to rent out their properties, as demand continues to outpace supply, creating an excellent opportunity to reap the rewards of associated rent increases.
5 Reasons Why This is a Great Time to Rent Out Your Property
High demand for rental properties
With aspiring renters queuing for rental units, now is the time to rent out your property. You can capitalise on the high demand and rent your property quicker than before.
Higher rent prices
As competition for rentals increases, rent prices continue to rise. Therefore, you can expect to receive higher rent payments than previously.
Longer-term rent contracts
Tenants will likely want to rent for extended periods due to the difficulty of finding rental properties. Therefore, you can expect rent contracts to last longer, providing you with more security.
Less void periods
Due to the high demand for rent, you can expect fewer empty rent periods. This is excellent news for landlords wanting to rent their properties quickly and not lose out on rent payments.
With a bigger pool of potential tenants, you can rent your property to the most suitable candidate. This helps you minimise the risk of rent arrears, damage to your property and other associated problems.
Although this is a great time, it is vital that you take appropriate measures to ensure you can enjoy a hassle-free rent experience.
7 Essentials to Consider Before You Rent Out Your Property
Maintenance and repairs
Ensuring your property is in good condition is vital, as this will help attract more rent enquiries and enable you to rent your property quickly. Therefore, you should perform regular maintenance and repairs to ensure it is in the best possible condition for potential tenants. This includes checking for dampness and mould and repairing broken fixtures or fittings.
There are several safety checks you need to undertake, including gas and energy checks. This is to ensure the property meets all safety requirements, which will be beneficial in rent negotiations. This also helps you comply with all legal regulations and avoid legal issues.
You should ensure you have an explicit tenancy agreement that includes rent payment terms and conditions and any other necessary information, such as the tenant’s rights and responsibilities. This will help to protect your interests and also provide clarity for both parties.
Advertise your property
Advertising your property puts you in the best possible position to rent quickly. You may rent through an estate agent for additional help or use online and local resources such as online rental sites.
Interview and screen tenants
When renting out your property, it is important to interview potential tenants to ensure they are suitable and reliable. You can ask questions about their employment, rent payment history and any other information you need to know to rent out your property successfully. This will help you rent out your property with confidence and peace of mind.
Familiarise yourself with rent regulations and landlord responsibilities
It is important to familiarise yourself with rent regulations and know all your responsibilities as a landlord. This includes paying income tax on your rental income, keeping your property free from hazards, and maintaining it to a safe standard.
Renting out a property often involves a lot of moving parts and paperwork. So, if you are a first-time landlord or have other commitments, hiring a private client property specialist to handle every aspect of rent may be beneficial. They can help you with maintenance and repairs, marketing your property, tenant screening, drafting rent agreements, ensuring you comply with rent regulations and more.
Chambré: Your London Rental Property Partner
Renting out your property can be a great way to generate additional income; however, it is essential to understand the renting process and ensure you have taken all the necessary steps to rent out your property successfully. We provide a comprehensive and bespoke rent management service that covers every aspect of rent and helps you easily let your property. Contact us today to find out more about our services.
- Are there any tax implications when renting out a property?
Yes, landlords must declare rental income on their annual Self Assessment tax return and may be liable to pay capital gains tax when they sell the property.
- What are some of the responsibilities I should be aware of as a landlord?
As a landlord, you are legally responsible for ensuring the property meets all safety requirements and keeping the property free from hazards, among others.
- What is the best way to ensure a successful rent process?
Whether you are a first-time or experienced landlord, it is important to hire an experienced property management specialist to help you rent out your property. They can help with rent negotiations, tenant screening, property maintenance and repair, rent agreements, legal compliance, and more.