A clearly defined property management agreement is an important step to letting a Hampstead property

 

Everyone has heard of the ‘accidental’ landlord but how about the ‘unexpected’ one? There are many instances when a homeowner doesn’t need to live in their own property – with situations (some unplanned) such as sabbaticals, working abroad, travel or a change in relationship taking people away from their homes.

Renting out your own home can also work if you want to be chain free when you purchase a new property or you want to downsize to a less expensive home to save money but want to retain ownership of your existing home.

Renting out a residence you live in is however quite different from being a professional landlord and buying properties solely for the purpose of buy-to-let – especially if you have the intention of moving back to the property in the future.

Hampstead letting agents TK International have put together some top tips for letting out your own home:

Financial and legal responsibilities
:

1. Mortgage - If there's a mortgage on your property, you must seek advice on any renting restrictions in the small print - some mortgages prohibit lets in the property. It may be possible to convert an existing mortgage to a buy-to-let one - ask a financial advisor for advice.

2. Tax returns - Don't forget about paying tax on any rental returns as you’ll be turning your home into an income-generating business.

3. Stamp duty - If you rent out a home you own and go on to purchase another to live in, you may be subject to higher stamp duty costs - seek advice from your solicitor.

4. Laws and legislation - Laws relating to rental properties can be complex and change on a regular basis. It is your duty as a landlord to run a legally-compliant let. A professional property management company can ensure you are letting within the law.

5. Reducing tax offsets - Make sure you're aware of the changing tax offsets that pertain to a landlord’s mortgage interest - this is diminishing from 2017 to 2020. Use an online calculator to see how you’ll be affected. http://www.telegraph.co.uk/property/buy/buy-to-let-calculator-how-will-new-tax-reduce-your-profit/

6. Tenancy Deposit Scheme - These Government-backed schemes are used to protect a tenant’s deposit. In England and Wales you are required by law to comply – a professional management agent will take care of this for you.


Preparing your Hampstead property to let:

1. Furnished or unfurnished? - Either clear the property so it’s empty or offer the home fully furnished - but you must insure your contents using a landlord-specific product. If you market the property as furnished, be prepared for cherished sofas, beds and soft furnishings to show signs of wear, tear and possible damage when you return.

2. Cleaned and decorated - Ensure that your home is thoroughly cleaned and freshly decorated in neutral shades to appeal to the biggest range of tenants.

3. Storage - Remove any items of sentiment for safe storage.

4. Property management service - Enlist the services of a professional letting agent to ensure that your tenants are thoroughly vetted and credit referenced before they take residency in your property.

Peace of mind: A fully comprehensive property management service completely removes the stress from renting out a property, ensuring that the residence and tenant are well looked after. If you are out of the country or travelling, this service is vital. A property manager will be your eyes and ears, with key access to inspect the property and deal with any emergencies.

A professional property management service:

TK International offers the following under its property management service:

  • Day-to-day dealing of minor repairs
  • Transfer of utilities
  • Credit control
  • Key holding service
  • Arranging repairs and maintenance
  • Management inspection
  • Managing the check-out process
  • Deposit safeguarding and release

Daniel Epstein of TK International comments: “Letting can be a brilliant way of making the most out of a property you own but no longer need. There is, however, often an emotional attachment to a house where a family has been raised or where there are fond memories. A professional property manager will make sure your home is well looked after and respected while you are away – preserving its value and condition for the future.”

If you have a property in Hampstead, Hampstead Garden Suburb, West Hampstead or South Hampstead and can see the benefit of making it available to tenants, you’ll be pleased to know there is a high demand for rentals in these areas.

Please contact TK International today to discuss renting out a Hampstead property you own and the reassurances a professional property manager can offer.