In today’s challenging housing market, more and more property owners are finding the idea of renting out their house or flat appealing. With home buyers becoming something of a rarity in some parts of the UK, renting out can often seem like the only way to assuage the financial problems that sometimes arise when a property is taking a while to be sold.
But there are a number of things that landlords new to the property market should bear in mind; it is not simply a case of finding a tenant, getting them to sign a contract and then waiting for the rent every month.
Depending on where you live in the UK, you will need to inform and be approved by the local authority. Additionally, if the property is going from being lived in by the landlord to being occupied by tenants, the insurer needs to be informed. Those who do not tell their insurance provider and then suffer a problem such as a flood, can find that their insurance policy is invalid because they did not switch to buy to let insurance.
It is also worth noting that mortgage lenders insist that buildings insurance is in place to help pay for any damage caused by such perils as fire or flooding. While buy to let policies may be more costly, in the long run they are the only real option for landlords planning to rent their property out.