If you are looking to rent out your property in the UK, here are the general steps you should follow:
- Make sure your property is ready to rent: Before you start advertising your property, make sure it is in good condition and ready for tenants to move in. This includes ensuring that all necessary repairs and maintenance work has been completed, that the property is clean and tidy, and that any necessary safety certificates are in place (such as gas safety certificates).
- Determine the rental price: Research the rental prices of similar properties in your area to determine what the appropriate rental price should be for your property. You can also consider consulting a local estate agent for advice on pricing.
- Advertise your property: Advertise your property on various platforms, such as online property portals, local newspapers, and social media. You can also consider using a letting agent to help you find tenants.
- Conduct viewings: Once you start receiving enquiries from potential tenants, arrange viewings of the property. Make sure the property is clean and tidy for the viewings, and be prepared to answer any questions the tenants may have.
- Screen tenants: Before accepting any tenants, you should conduct thorough background checks, such as credit checks and references from previous landlords or employers, to ensure that they are suitable tenants.
- Draw up a tenancy agreement: Once you have found suitable tenants, draw up a tenancy agreement that outlines the terms and conditions of the tenancy, including the rental price, the length of the tenancy, and any other relevant information.
- Protect the tenant’s deposit: If you take a deposit from the tenant, you must protect it in a government-approved tenancy deposit protection scheme within 30 days of receiving it.
- Complete necessary paperwork: Make sure you complete all necessary paperwork, such as notifying the local council and utility companies of the change in tenancy, and arranging for an inventory of the property.
- Manage the property: Once the tenants move in, it is your responsibility to manage the property, including carrying out necessary repairs and maintenance, and responding to any issues or concerns the tenants may have.
It is important to note that renting out a property can come with legal and financial responsibilities, so it is recommended to seek professional advice and guidance to ensure that you are following all necessary regulations and requirements.
How much can I rent my property for?
The average rent in each borough in and around London can vary significantly depending on factors such as the size and type of property, location, and local market conditions. Here is a general guide to the average rent in each borough as of 2021, based on data from the UK government:
- Barking and Dagenham: £1,184 per month
- Barnet: £1,459 per month
- Bexley: £1,083 per month
- Brent: £1,539 per month
- Bromley: £1,306 per month
- Camden: £2,292 per month
- Croydon: £1,177 per month
- Ealing: £1,425 per month
- Enfield: £1,268 per month
- Greenwich: £1,277 per month
- Hackney: £1,859 per month
- Hammersmith and Fulham: £2,017 per month
- Haringey: £1,537 per month
- Harrow: £1,345 per month
- Havering: £1,102 per month
- Hillingdon: £1,309 per month
- Hounslow: £1,313 per month
- Islington: £2,045 per month
- Kensington and Chelsea: £3,085 per month
- Kingston upon Thames: £1,462 per month
- Lambeth: £1,664 per month
- Lewisham: £1,324 per month
- Merton: £1,488 per month
- Newham: £1,274 per month
- Redbridge: £1,288 per month
- Richmond Upon Thames: £1,906 per month
- Southwark: £1,736 per month
- Sutton: £1,123 per month
- Tower Hamlets: £1,663 per month
- Waltham Forest: £1,284 per month
- Wandsworth: £1,798 per month
- Westminster: £2,986 per month
It’s essential to note that these figures are averages, and actual rental prices can vary depending on the specific property, location, and other factors.
Can I rent my property if I have a mortgage
Yes, you can rent out your property if you have a mortgage, but there are some important things to consider:
- Check your mortgage terms: Before you decide to rent out your property, you should check your mortgage terms to make sure that you are allowed to do so. Some mortgage lenders may have restrictions on renting out properties or require you to switch to a buy-to-let mortgage before you can rent out the property.
- Inform your mortgage lender: You should inform your mortgage lender that you intend to rent out your property, even if your mortgage terms allow it. This is significant because your lender may need to make changes to your mortgage agreement or give their approval before you can rent out the property.
- Consider the financial implications: Renting out your property can provide a source of income, but you should also consider the financial implications. For example, you will need to factor in the costs of property management, maintenance, and repairs, as well as potential rental voids. You may also need to pay tax on your rental income.
- Obtain appropriate insurance: You should make sure that you have appropriate insurance in place for your property. This may include landlord insurance, which can cover things like damage caused by tenants, loss of rent, and legal fees.
- Meet legal requirements: As a landlord, you will have legal responsibilities, such as ensuring that the property meets safety regulations, protecting the tenant’s deposit in a government-approved scheme, and providing an Energy Performance Certificate (EPC). You may also need to obtain a license from your local council if you are renting out a property in certain areas.
Overall, it is possible to rent out your property if you have a mortgage, but it’s important to consider all of the implications and requirements before doing so. It’s recommended to seek professional advice to ensure that you are following all necessary regulations and requirements.
Can I rent my property out on a normal mortgage? Will my mortgage change if I rent my property?
If you decide to rent out your property, your mortgage may change depending on your lender and the terms of your mortgage agreement. Here are some possible ways your mortgage may change:
- Interest rate: If you have a standard residential mortgage, and you decide to rent out your property, your lender may increase the interest rate on your mortgage. This is because buy-to-let mortgages typically have higher interest rates than standard residential mortgages.
- Mortgage term: Your mortgage term may also change if you decide to rent out your property. For example, your lender may require you to switch to a buy-to-let mortgage, which may have a different mortgage term than your current residential mortgage.
- Fees: Your lender may charge additional fees if you decide to rent out your property. For example, they may charge an arrangement fee or an administration fee for switching to a buy-to-let mortgage.
- LTV ratio: If you have a high loan-to-value (LTV) ratio on your mortgage, your lender may require you to reduce this ratio before allowing you to rent out your property. This may involve paying off some of your mortgage or increasing the size of your deposit.
If you have a mortgage with Halifax and you decided to rent your property then annually your interest rate will increase by 0.5%.
It’s important to note that every lender and mortgage agreement is different, so it’s best to check with your lender to find out how your mortgage may change if you decide to rent out your property. Additionally, it’s recommended to seek professional advice from a mortgage broker or financial advisor before making any decisions about renting out your property.
