Maximise your budget abroad by renting out your home.
When we made the decision to move to Barbados for the year, we were faced with the dilemma of what we should do with our property. After some research on property prices in Barbados we realised very quickly that with some additional budget we could create our dream life in the Caribbean. With only two months’ to organise the move, the pressure was well and truly on and there was no time for wavering. Should you find yourselves in a similar fortunate position, here is a step by step guide of how to get your home rented.
STEP 1
Review the rental market and find the true value of your home
Request rental valuations from ideally three local Estate Agents.
Check Rightmove and compare your home to similar properties on the market to estimate the value.
Step 2
Decide on the best method to advertise your property and whether you require property management
An Estate Agent will capture glossy pictures of your property and manage the marketing. They can arrange for contracts to be drawn up. Note that this comes with a relatively hefty price tag of ordinarily one month's rent.
You can pay a monthly charge for the Agent to manage your property and chase your tenant if in arrears. They can arrange workman should anything go wrong at the property. So it is worth weighing up if paying them approx 20% of the rental value each month would relieve your stress levels.
Like us you could opt for an agent such as OpenRent - an online letting service, charging a flat rate of £50 to advertise property on various sites such as Rightmove.
They had a simple online system that was easy to navigate, allowing you to upload the photographs and a description of your property. Plus a viewings and enquiry organiser tool.
Within this cost they include contract drafting, allowing you to customise to your requirements and digital signing.
For an additional £20 they offer services such as tenant vetting, deposit registration and initial rent collection. You can also book all the safety work legally required through their site.
Step 3
Get marketing as soon as possible!
Start to declutter the house and arrange for storage. If you have a loft, basement or garage this could be a good option, if not you should google local storage companies in your area.
Make a list of any painting and maintenance jobs that may be required and get these completed as soon as possible.
The photos of your property need to sell a lifestyle, so make them aspirational. Ensure personal items have been removed and that the space is as minimal as possible. Neutral colours work well to give the place a fresh look. Photograph when there is plenty of light filling each room and be sure to edit before you upload the final shots. If you have any unique features or anything that gives your home character, be sure to include them.
Write a description for the property ensuring you highlight the positives and make copy as emotive as possible e.g. mention an open fire so people can picture themselves snuggled around this on a cold day. Discuss the local amenities such as convenience stores, parks, schools etc.
Price the property according to the competition. Remember you could always start higher to gage the interest and bring the price down should you need to. People like to haggle!
Step 4
Tenancy completion and the legals
Make sure you are adhering to the most recent laws concerning property letting and arrange for the following: Gas Safety Certificate, Boiler Service, Energy Performance Certificate (EPC), Electrical Installation Condition Report (EICR), Portable Appliance Testing (PAT), Fit & Test Smoke Alarms and Landlord Building & Content Insurance.
Once you have secured a tenant, ensure referencing checks have been completed before drawing up and signing a contract. (Note, with oversea tenants, referencing checks cannot be made so you could look to include a Guarantor on the contract or ask to see bank statements to ensure they have sufficient funds). You will need to register the Tenants deposit with a government-approved scheme: Tenancy Deposit Scheme UK (TDS), they will manage the funds until the end of the tenancy agreement.
Contact your local Council to inform them that you are renting out your property, providing the tenants details, so all Council Tax bills etc can be changed to their name. If you are an overseas landlord your are subject to a tax relief.
Produce an Inventory document of all the items that you are happy to leave in your home, including photographs and descriptions of each item in case there are any damages that you need to charge for at the end of the tenancy. Go through the Inventory with the Tenant as you will both be required to sign and date this legally binding document.
Ensure that the Tenant has all your contact details should they need to contact you. We think its a lovely gesture to leave them with a welcome gift such as champagne and chocolates. And finally you can celebrate, reassured that you have everything in place for a happy tenancy with money to go towards your new Caribbean life.
TIPS
- It is important to conduct your own research! It soon became apparent that the Estate Agents had undervalued the property for the current rental market with valuations that would have lost us up to £500 each month, so we no longer felt that they were the best advised to market our property,
- Do not allow the Estate Agent to force their management service on you, on the premise that you are an oversea Landlord. We had an Agent that tried to convince us that legally we were obliged to pay for an estate agent to manage the property if living abroad. After some investigation into the legals, we realised that we had been misinformed and as long as we instructed the local authority about our movements for tax purposes, we would be fine to manage this ourselves and also receive a tax relief!
- If like us you decide to opt for Open Rent or a similar agent, ensure that you have family and friends close by that could help out in an emergency if required. That said, we have resolved all issues ourselves as workmen are easily contactable via Whatsapp these days – but it’s good to have some handyman contacts should any issues arise.
- As advised on the UK Government website, be sure to give your tenants a copy of the How to Rent Checklist.
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