This is a full money making guide to rent out your property whether it be a house or an apartment. This guide will assume you already have your property ready to let, if you have not please see our guide to Buying a property to let.

If you’re thinking about letting out a property you own it can be a great money maker, not only will you get rent each month you will also most likely make money on the property itself when it rises in value. Many people just make money through rentals and we’ll show you how to rent your own. However renting out your property isn’t all bliss and there can be many complications from costly repairs to bad tenants. Before reading on you may want to read our “Guide to being a Landlord

1

With Estate Agents / Letting Agents

If you’ve bought a property purely to let out them I’m sure you’ve already done this step and had it valued by several independent agents. If you have not then don’t skip this step. You’ll need to call at least 3 estate agents to come out and value your property that you intend to rent. While they are out you will also want to find out what their finders fee is.

You can also find out what percentage they charge for managed however we recommend managing it yourself as most agents take 10% of your monthly rent and for what they actually do it isn’t worth it. If you’re not comfortable managing it yourself then make sure you get a good rate. We use estate agents to find us a tenant and draw up the contract as that’s not something you want to do yourself unless you know what you’re doing. For our rental it was £300 + Vat, this varied from around £180 – £500. You will be surprised how much the valuations will vary too. We got rental figures from around £575 to £700 per month.

Don’t just go for the estate agent that gives you the highest valuation as there’s a good chance you won’t get it and they’ll be calling you up a few weeks later asking you to drop the price. Go with the one you think will do the best job. Once you’ve picked go ahead and get it advertised, the quicker you do the quicker you start getting income.

2

Without Estate Agents / Letting Agents

If you’d like to let out your property by yourself without letting agents then it’s still best to get a few out to value your property so you have a better idea on how to price it. These are a few different methods to market your property:

  • A Sign – Depending on where your property is positioned it may be good to put a sign in the window, very simple yet can be very effective.
  • Social Media – There are many Facebook pages that you can join and list your property to rent, this is completely free and one of the best methods.
  • eBay / Gumtree – You can list your property on eBay and Gumtree, Gumtree is free to list which eBay charges are applicable.

Marketing your property yourself for free can be tough. You really need to get listed on Rightmove or other similar websites to get your property seen. Try online estate agents rather than local estate agents that take a percentage. Check out our “Best online estate agents” Guide.

When you find your tenant you need to do the same things a letting agent would do. You can perform several checks on your tenant such as Credit checks. You will also need to get a tenancy agreement contract; you can get one of these from your local post office or via an online source.

3

Furnished or Unfurnished?

Next you need to decide whether you’re going to let your flat out as furnished or unfurnished. Your estate agent will give you advice on this too. For our project we decided to go for unfurnished as it was a new build and believe unfurnished is the better option anyway. However we still did the basics such as Mirrors, toilet role holders, towel racks, coat pegs, curtain poles and blinds. It’s best to do these as you don’t want your tenant drilling into your walls as you can’t be sure if it will be a good job or not.

4

Inspection Report

Your letting agent will do this for you but it’s always could to do one yourself. You basically want to make a list of everything about your property and it’s condition along with photographic evidence. You need to do this encase the tenant ends up damaging anything when they leave this way you can receive money from their deposit to repair any issues. Make sure to take lots of photos all over the property including walls, fixtures and fittings, appliances, carpets etc.

This is quite a basic list of the few steps it takes to let out your property. Don’t forget to consider your time when doing all of this, It might seem like a good idea to go without an estate agent but if it takes your twice as long to get it rented you’ll lose money. Once you’ve rented it out make sure you leave everything the tenants will need on the kitchen counter such as information about appliances, contact information etc.

Be sure to keep up date with any safety checks and do not let the tenant fall behind on rent! Good luck!