Before You Start Letting Your Property

Before you start letting

Check with your lender

Unless you have a specific buy-to-let mortgage, you should check with your mortgage provider that they are agreeable to the property being let. You may be in breach of the conditions of the loan if you do not have their permission. They may agree subject to conditions and it is essential that you take account of those conditions when you let, either by adapting the Tenancy Agreement to comply with them or ensuring that your letting agent does so.  Sometimes lenders will refuse permission or impose a punitive interest rate.

Because of its chartered surveyor status Simply Let is one of the few letting agencies in Inverness professionally qualified to provide a rental valuation of your property which will be acceptable to mortgage lenders.


Check your insurance

Your building insurance provider may allow you to rent out your property with advance notice, or you may have to change policy or provider. Cover will vary and some will provide specific landlord's insurance against unpaid rent or accidental damage by tenants.

Remember that building insurance may not cover carpets or other contents and you may need separate contents cover.  Our Tenancy Agreements require tenants to maintain adequate insurance cover against any damage they may cause to your property but it is not lawful to require them to insure their own contents.


Check any personal tax implications

This is a complex area and specific to each landlord of course. There are some clear issues to consider.

  • What counts as capital expenditure?
  • What can I offset as costs against income?
  • Is mortgage interest allowed as a cost?
  • If I live abroad or spend time abroad regularly will I be classed as a Non Resident Landlord? - see HMRC website for more information

Simply Let can give some advice on this but for definitive advice you should speak to your accountant or tax specialist.


Consider the appeal of the property

Empty periods are the most expensive for a landlord.  With many properties to choose from, you property needs to have that extra appeal that will make a tenant choose it over others and make them want to stay on.  Modern kitchen and bathroom fittings are great attractions, but think too about imaginative and appealing lighting, and a large mirror here and there.   We can advise you on how to increase the appeal and "letabilty" of your property.  All of this things help to reduce void periods and, when demand for properties is high, will increase the likelihood of a higher rent being achieved.  

You will also attract better tenants who are more likely to pay their rent on time and cause less wear and tear on your property and contents.