What are the steps for renting out my property?

Have a property that’s ready to go on the market for rent? Whether you’re a first-time portfolio landlord or you’ve inherited a unit, make sure you aren’t missing a step by consulting Centrick’s expert guide to renting out your property.

What do I need to do before letting my property?

Before renting out your property, you should ensure the building is in good shape to safely accommodate your future tenants. For new build properties, you should have an expert assess the development and ensure all aspects are in good working order. For older properties, you may need to carry out some renovations prior to listing your property on the open market – we recommend consulting a local lettings expert before proceeding with any renovations so you can understand which amends are most important and more likely to boost the market value of your unit.

Do you need a licence to rent out property?

In most parts of the UK, you don’t need a licence to rent out your property. However, a licence is required to rent out buildings in some parts of London, Nottingham and other metropolitan areas in the UK. Most licenses are simple to pay, and not paying them could result in a £20,000 fine: typically, a standard fee applies for a license that lasts a number of years, and sit at around £500 on average. Find out from the relevant authorities if you need a licence and ensure that you get one where necessary.

How much tax do you pay on rental income?

If you own any properties in the UK, you are liable to pay taxes on the income you get from renting out your houses. However, you only pay tax on your net income: this means your total income minus expenses allowed by the relevant laws. In this context allowable expenses for landlords include professional fees, mortgage loan interest, landlord insurance, maintenance tax and repairs. Other allowable expenses include utility bills, ground rent and council tax.

Can I rent out my house with a normal mortgage?

If you have a standard mortgage, you can’t rent out your house. If you do this and the lender finds out, it would be classified as mortgage fraud. However, if you insist on letting out your property, you can apply for the “consent to let” agreement. This document allows you rent out a part or all of your home for a limited time.

What certificates do you need to rent out a property?

Before you rent out your property, you will need a number of certificates. These include, but are not limited to:

  • an energy performance certificate
  • an EICR
  • a gas safety certificate, if your property relies on gas
  • a fire safety certificate
  • deposit protection paperwork
  • evidence of property ownership

What documents do landlords need?

Before letting tenants move into your house, you need the right paperwork. Among other documents, you need lease or rental agreements, pet policy agreement, move-in checklists, tenant screening documents and lease renewal paperwork. Once you have all these things in place, you can go ahead and market your unit!