Whether you own a second property or are not going to be living in your home for a while, renting it out can open up a new stream of income. However, being a landlord also brings more responsibility since you will need to ensure that the property is well-maintained, in good repair, and that tenants are appropriately vetted before signing the contract and moving in.
While renting out your house might seem like a lucrative opportunity, it’s important to consider whether you are able to take on the responsibilities of being a landlord. To help you decide if it’s the right move for you, we’ve put together a checklist of the main costs that it is likely to incur.
The Cost of Letting a Property UK
A frequent question from landlords is “How much will it cost to rent out my property?”
How much will it cost to rent out my property?
This varies from estate agencies and therefore it is best to check with your estate agency. The costs involved in letting your property consist of:
Energy Performance Certificate
An EPC, which you will need to make available to interested tenants no later than 28 days from marketing. Check if your estate agent can arrange for an EPC to be carried out on your behalf. Greater London Properties can arrange an EPC for you.
Inventory and check in report
This should be organised before a tenant moves in. Ask your estate agent if they can arrange this on your behalf or provide an estimate. Greater London Properties have fixed costs on inventory and check in report. Call us on 020 7113 1066 to find out more.
Estate Agent commission
Your estate agent’s commission fees is usually payable when a tenant is introduced and enters into an agreement to let the property. This is charged as a percentage of the agreed rental price + VAT at the prevailing rate.
Renting Out a Property Costs – Tenant Checks:
Before renting your home out to a tenant, you will want to check that they are suitable for living in your property. You will need to pay for credit checks to be carried out on the tenant before approving them. Some landlords may also want to add a tenant background check to ensure that they are not renting their home to anybody with a criminal history.
If your home has a gas central heating system and other gas appliances such as a gas oven or hob, you will need to get regular Gas Safety Certificates for the property. This involves an inspection that should be carried out on an annual basis by a registered Gas Safety Engineer. You can be responsible for arranging these checks yourself as the landlord or they can be included in the service offered by GLP’s property maintenance.
It’s important to ensure that your property’s water supply is safe for the tenants and free of bacteria and other diseases such as Legionella. This will require regular checks of the water supply in the property by a trained professional and is legally required for all rental properties.
The Cost to Cover Repairs:
Before renting out your property you will need to ensure that it is in good repair and that everything is safe. This may require carrying out repairs on fixtures such as doors, windows and steps to ensure that there are no hazards present that could potentially cause harm to come to the tenants.
Costs of Renting Out a Flat – Decorating:
Before renting out the property you will likely need to decorate. This will ensure that the property is cosmetically attractive which can help with finding tenants. Many landlords choose to decorate the property in neutral colours which are easier to touch up. However, you may decide to permit tenants to decorate the property themselves if you are renting long-term. This can help you build good relationships with your tenants and encourage them to stay in the property for longer since they will feel more at home. If you decide to allow tenants to decorate, we recommend specifying what they are and are not permitted to do in the rental contract.
As a landlord, you must be financially prepared for any emergencies that might arise with the property. At GLP, our property managers can help with taking care of any urgent situations that might arise and your fee will cover the majority of situations that occur. Bear in mind that it is your responsibility to ensure that any urgent problems are repaired in good time.
How Much Will It Cost for Insurance?
When renting out your property you will need to ensure that it has adequate insurance. Buildings insurance that is designed for landlords will cover any expenses incurred by damage to the property caused by fire, floods, and more. Getting the right insurance cover is a legal requirement for landlords. The cost of cover will depend on a range of factors including the type of property, where it is located, and whether you are insuring only the building or contents are included as well. if you’re providing furnishings with the rental home these will need to be included in your cover. Your tenant will need to get their own contents and tenant’s liability insurance cover for anything they bring.
You can choose to rent out your property either with or without furniture included. Unfurnished properties tend to attract long-term tenants who will want to bring their own belongings, while furnished properties are ideal for HMOs or short-term rentals for students or professionals. If you are looking to offer a short-term rent you will need to provide furniture such as sofas, beds, dining furniture and electronics.
How Much Will It Costs for HMO Licences:
Finally, you may be required to get an HMO licence depending on the type of property you are renting. If you will be renting a property to three or more separate tenants that are not from the same household, it’s important to check whether an HMO license is required before you advertise the property. Costs of a licence vary between different local authorities.
We hope this answers your question “How much will it cost to rent out my property?”. Our Lettings team would be delighted to offer a Free Valuation on your property, please give us a call today or use our online instant valuation tool.