With recent economic uncertainty and increasing mortgage interest rates, it’s clear that the sales market has shifted from the frantic activity we saw in much of 2022. Many buyers have put their searches on hold because of the lack of affordable mortgages and uncertainty of what might be around the corner, and the effects are rippling through the housing market. While most commentators don’t expect a ‘crash’, like we saw in 2008/09, portals including Zoopla suggest transactions will be down next year and that the price buyers are willing to pay will be nowhere near the dizzy heights we’ve become used to in Edinburgh.
If you don’t have to sell, then there may be another way. You could rent the property out.
The Rental market is booming – While the sales market has slowed down, it’s quite the opposite for the rental market which is booming. There are not enough homes to rent to cope with the huge tenant demand.
Becoming a landlord is easier than you think
The steps towards renting out your property – There are some straightforward steps to take to get your property onto the rental market.
- Permission from your lender – If there’s a mortgage on the property the first step is to contact your lender to ask permission to rent it out. Most lenders will allow ‘consent to let’ the property for 1-2 years. With the cost of current mortgages unaffordable for many, a consent to let on an existing mortgage product, on more favourable rates, could tide things over until a later date when you can secure a buy to let mortgage,, hopefully when rates are more affordable.
- Register as a landlord – Landlords must register with their local authority before renting out a property. Registration lasts for 3 years and as part of the registration process landlords must certify that their property meets certain safety standards and checks are made that the individual is ‘fit and proper’ to become a landlord.
- Compliance – Every property let out in Scotland must comply with The Repairing Standard and meet specific safety standards set by the Scottish Government, relating to electrical, gas, fire and water safety.
- Furnishing and preparing your property for let – Most of the time, 1-3 bedroom flats work best furnished, while family homes out of town work well unfurnished [insert link to Umega furnishing guide]. Either way it’s worth decluttering and removing any personal or sentimental items. Also, if there’s any outstanding small repairs it’s worth getting these taken care of before listing the property for let.
We’re here to help!
We make it easy – The above steps to becoming a landlord can seem overwhelming however at Umega, we’re well placed to guide you through these steps and to take care of everything on your behalf, with over 15 years dealing with thousands of landlords and tenancies.
If you’re dipping your toes into the idea of renting out your property you can carry out a free, no-obligation, online rental valuation on our website. If you want to explore things further then contact our team by emailing [email protected] or phoning 0131 221 8291. We’re proud of our award-winning service and are here to help share our expertise to help you make the right decision for you.