If you are leasing out your own home, you must take into account that your mortgage on your own home is normally that of a residential mortgage and NOT a buy to rent mortgage. It is normally a requirement of your mortgage lender that you inform them if you wish to rent out your own property. Be aware however, that they may choose to adjust your interest rate to that of a buy to let borrowing rate (normally higher).
There are three main options when looking to lease your property:
1) Rent it out yourself, advertise your home to rent online.
2) Get a Property Management Company or real estate agent to ADVERTISE, LEASE and MANAGE your property.
3) Get a leasing agent or property management company to find you a tenant but you will manage it!
Renting your home out yourself is generally the most profitable option. However, this can come with much stress, hassle. Being phoned by your tenant at unsociable hours for repairs and problems may not be ideal to many of you. It is also important that you are organised with your dates and finances, knowing when rent is due and keeping track is without saying paramount! If you do choose this option, advertise online for the best results!
Getting an agent to Advertise, Lease and manage has its benefits. The agent credit scores and references potential tenants and gets you house rented! They have the advertising power and the time to spend getting the right tenants in your property. Agents in general deal with all repairs and enquiries from tenants and collect rental payments. Sounds good hey?????? Yes it is…. but they will expect a tenant finders fee and a monthly commission of your rented income.
Getting an agent to just find the tenant! This option seems to be very popular for many landlords. The chosen leasing agent finds appropriate tenants and credit scores, references them. They move the tenants in and deal with all tenancy agreements. You however, will pay the initial tenant finders fee and will be responsible thereafter for rent collection, maintenance etc.
So as you can see, all options have their pros and cons. It’s a matter of the landlord choosing the most suitable option for them.
