Planning on renting out an inherited property? Make sure you carry out these checks

Planning on renting out an inherited property? Make sure you carry out these checks

August, 2019

If you’ve inherited a property, you’ve got three options: move into it, sell it on or rent it out. Renting can be lucrative, especially if the mortgage has already been paid off, so it’s a popular choice for many people. However, there are a number of things you need to check to make sure your property is up to rental standards.

The mortgage

If the property still has a mortgage left on it, you’ll need to make sure that you have permission to let the property. A standard mortgage won’t allow you to let out the property, so you’ll need to get in contact with the lender and discuss what your options are.

The condition

The property you have inherited is most likely someone’s home – meaning it hasn’t been decorated or looked after with tenants in mind. This might mean dated fittings and fixtures, single glazed windows, jarring wall colours or worn out carpets, things that will put off potential tenants. You’ll need to consider whether you are willing to refresh the property and whether this will give you a profit in the long run.

Safety standards

A rental property will have to meet more safety requirements than an owned property. For example, it will need to have at least one working fire alarm on each floor, the electrics will need to meet current standards and the gas will need an annual check. If the property has never been a rental, there isn’t any legal obligation to meet these safety standards, so it’s important to check them before you move in a tenant.

Demand

You might have heard that more people are looking towards the rental market rather than buying outright. Young people are increasingly finding it hard to get their foot onto the property ladder, and so are looking to rental properties in the meantime. However, just because rental demands are high across the UK in general, doesn’t mean they’re high in the area your property is in. A three bedroom house might rent well by a school, but in an area with a lot of commuters then a one bedroom flat might be more popular. Find out what kind of demand there is and that will help you decide whether letting is a good choice.

Asbestos

These fibrous minerals are heat and electricity resistant, affordable and good sound absorbers. It’s no wonder they were used in the construction of homes in the 20^th century – it was perfect for strengthening other materials. However, when inhaled, asbestos can be deadly, which is why it was banned from the UK in 1999. If your inherited property was built pre-1999, and especially if it has ceiling tiles or artex on the walls, you might want to get in a specialist to carry out a survey for you.