Is renting out my home the right choice?
Renting your home in Milton Keynes might be the right choice for you if:
You’re having a hard time selling your home.
- If you have a mortgage to pay and your home is taking longer than expected to sell, renting it may be a good alternative. This way, you’ll at least be receiving rental payments to supplement your normal income.
You’re exploring other possibilities, but you don’t want to fully commit just yet.
- You might be considering taking a relationship to the next level and trying out living together
- You might be leaving the country for a little while to travel or work abroad
- Renting out your home gives you an opportunity to make some money on the side while you try out these new experiences – without the finality of selling your property.
You’re moving house.
- Perhaps you’ve already invested in a new property for yourself, but you’d still like to keep your old one.
Research
Spend some time looking at the available properties being let in your area. Search for properties that are similar to the one you own and check the current going rates. It’s also worth looking at their rental prices through the last few years. Looking at the historical rates can give you a good idea of how much rental prices have increased or decreased, and how much they may be likely to change in the future.
All of this research helps you determine how much you want to charge for your rental property. If this seems too complicated or overwhelming, get the help of a good letting agent in Milton Keynes.
Do the maths before you commit
Renting out your house isn’t always financially worth it. You’ll have to work out how much renting out your home in Milton Keynes will cost you, and compare that number against how much income you may receive from rent payments.
The income you receive from renting may be taxed at your usual rate (20% for basic, or 40% for higher). Make sure you’ve factored in the relevant tax deductions before deciding to rent your property. Add in your letting agent fees and insurance payments. Whatever you are left with must – at least – cover the mortgage payments on your home for renting to be worth your time. If your plan is to be a full-time landlord, you may also have to pay Class 2 National insurance.
You don’t just want your profits to barely cover your mortgage payments every month. You’ll also need extra money on hand for repairs and any maintenance required on your property. Even if your home is not occupied (in other words, if you have no tenants) you will still need to make your mortgage payments. Your backup fund must contain enough money to cover your mortgage payments in the event of your home having no tenants for a period.
Do I need permission to rent my property in Milton Keynes?
Yes, from your mortgage lender. If you do not speak to your mortgage lender first about your plans to rent out your home, you risk breaking the terms of your mortgage contract. Generally, you must obtain a consent for lease from your mortgage lender before renting your home.
Do I need insurance to rent my property in Milton Keynes?
Yes. You need to tell your buildings and contents insurance companies. You must also take out a new landlord insurance policy to protect your tenants, property and investment. Some of these policies can benefit you by covering rent payments in the event of your tenant missing the payments.
If you are reliant on your monthly payments from tenants to cover the mortgage on your rental property, then you could be in trouble if your tenants fail to pay their rent. Landlord insurance helps you avoid these issues.
A few final words…
Renting your property in Milton Keynes can be a rewarding venture when done with thorough planning and consideration. By adhering to the rules, conducting research, and securing appropriate insurance, you can enjoy the benefits of being a successful and responsible landlord while ensuring your property and tenants are protected.
