Different types of letting options
Have you got a property in Leicester that you can let? There are perks and drawbacks of different strategies. In this blog we will go over the main strategies and one newer option. We will order in what we think is least risk-averse and working our way up. The last two strategy to rent your property does involve more work however the financial reward potential is greater
Professional family house.
Long term letting to a professional family. Their rental contract will usually run from a 6 month to a 12month contract. It’s good if you’d like to deal with less admin and receive fewer bills as its covered by your tenants. It does mean your boiler will be respected during winter periods as your tenants will need a good reason to leave the heating on whilst they’re at work and have the luxury of returning to a cosy house after a days work. Landlords are not able to install a neat Hive system to control the gas; however the tenant is able to install from their will.
This is usually 3 bedrooms or more where tenants will be renting a private room only contract and all other areas are known as communal areas shared as a community. They are usually not identified and selected by the landlord or letting managing company. The tenants need to be friendly and respectful to other tenants as the landlord can end up with dealing with disputes. It’s ideal for empowering the tenants to be able to make decisions as well as ensuring there is not a personality clash by allowing tenants to interview potential new housemates.
Bills are to be paid by the landlord and absorbed by the monthly rent. Just like student letting there is high regulations and processes to follow.
Student letting can easily earn more per room because of the risk they bare for wear and tear. Usually rent is received by semester, which can help cashflow; however, many will not have a regular income, so therefore checks must be made to ensure financial management is in place.
You will find giving the house annual paint refreshments and regular maintenance.
Have you heard of Airbnb property management or Booking.com. These platforms allow you to let your properties on the short term market where you are competing with hotel rates. Ensure you have your paperwork in place. The workload is higher from high tenant turnover which means more communication, unknown monthly income and constantly cleaning management.