If you've never rented out a property before, or have some burning questions you need to know the answers to, we can keep you informed.
In London, whether you need a license to rent out your property depends on the type of property and its location. If you rent out a house with five or more tenants from multiple households, you must obtain a mandatory HMO license. Additionally, some London boroughs require a selective license for all rental properties in certain areas, while others have additional licensing schemes for smaller HMOs or specific zones. To ensure compliance, it's crucial to check with your local council for the specific licensing requirements in your area.
As a landlord, you should have landlord insurance to cover property damage, loss of rent, and tenant liability. Additionally, buildings insurance protects the physical structure, while contents insurance covers furnishings you provide. Loss of rent insurance ensures income if the property becomes uninhabitable, liability insurance covers legal claims for tenant injuries or property damage, and legal expenses insurance assists with costs related to tenant disputes.
Yes, you must inform your mortgage lender before letting your property. Your lender needs to approve the change of use and may impose specific conditions. If you’re purchasing a property with the intention of renting it out, consider applying for a buy-to-let mortgage, which is specifically designed for rental properties. Failing to notify your lender could breach your mortgage agreement and lead to potential penalties.
As a landlord in London, UK, you are required to pay Income Tax on your rental profits and report this income on your self-assessment tax return. You can deduct allowable expenses such as maintenance and management fees from your rental income to calculate your taxable profit. It’s advisable to seek professional advice to ensure full compliance and optimize your tax obligations.
To determine the right rental price for your property, the best place to start is researching comparable properties in the local area to understand current rates. Consider factors such as your property's size, condition, and location, as well as recent rental trends and market demand. For an accurate and competitive valuation tailored to your specific property, consult with us here at base. We can provide expert advice and insights to help you set the optimal rental price.
As a landlord in London, you must ensure gas safety by arranging annual checks and providing a certificate, maintain electrical installations with regular inspections and an Electrical Safety Certificate, and adhere to fire safety regulations, including installing smoke alarms and compliant furnishings. You must also protect tenant deposits in a government-approved scheme, provide an Energy Performance Certificate, and offer a written tenancy agreement. Additionally, keep the property well-maintained, verify tenants’ right to rent, conduct a Legionella risk assessment, and ensure overall health and safety standards are met.
To find tenants, we market your property comprehensively across multiple channels, including portals such as Zoopla, and PrimeLocation, our website, social media, and direct marketing to our database of applicants. We pre-qualify applicants before scheduling viewings, ensuring they meet key criteria such as move-in timing, affordability, and suitability (e.g., number of occupants vs. number of bedrooms).
It's best practice to allow the tenant to set up their own utility accounts. That means they should pay for the council tax, energy supply, water & wastewater services and internet connection themselves. This gives the tenants more control over who their provider is, and your liability is always protected from potential non-paying tenants under the terms of the tenancy agreement.
