Preparing to let without a letting agent: A checklist

There are numerous benefits to renting out a property, but if you want to maximise your profits and avoid an extra expense, you might be tempted to move forward without using a letting agent. Becoming a DIY landlord could potentially save you thousands every year in agency fees, and it means you can build a strong relationship with your tenants as you’ll be in direct communication with them.

However, while managing your own rental property brings many advantages, there’s more to renting out a property than you may realise such as finance management, security and legal compliance. This guide will walk you through everything you need to know about self-managing your rental property successfully.

Gas and electricity safety checks

As a landlord, you have a legal responsibility to ensure the property you let out is safe for tenants. Gas, fire and electricity checks are a critical aspect of this, so you will need to make sure the property has been serviced by a Gas Safe registered engineer and that you have a copy of the gas safety check record to provide to your tenants. You’ll also need to provide them with an Energy Performance Certificate (EPC) for the property too.

Likewise, you need to ensure the electrical system is safe and that all appliances are in safe working order. Lastly, provide a smoke alarm on each storey of the property, along with carbon monoxide alarms in any rooms where there’s a fuel burning appliance. Escape routes need to be free and clear, and any furniture included with the property has to be fire safe.

Marketing tips for letting a flat privately

The right marketing approach will generate interest in your rental, helping you minimise void periods and providing you with a broad pool of tenants to choose from. Without a letting agent, however, making sure the property is listed in the right places falls to you, so make sure the property is listed on popular portals like Rightmove, On the Market and Zoopla, which tenants are likely to use to find a home.

Attract interested renters with great photos of your property, highlighting the unique features and décor of your rental. Similarly, ensure that your listing description includes all the main features and details a prospective tenant will be looking for, such as whether a parking space is available, any included bills or nearby amenities.

Find suitable tenants

One of the most critical steps to letting a property is finding reliable tenants, and it’s a task that often falls to letting agents. If you’re taking a DIY approach, you will need to carry out thorough reference checks, which should include verifying their employment and any previous landlord references. You should also complete an affordability check, credit score assessments and check details on any County Court Judgments (CCJs) or other court information. Don’t forget to complete Right to Rent checks too, if you’re letting a property in England, as these are a legal requirement.

Documentation and contracts

While it’s tempting to skip the paperwork if you’ve found a tenant that seems reliable, it’s a legal necessity. A contract doesn’t just protect your tenants but also landlords, and it’s a key document to have in place if you want to maintain a professional landlord-tenant relationship.

Naturally, the tenancy agreement should be tailored to your property and rental arrangement, but there are a few details that should always be included. These are:

• The property address and contact details for both you, as the landlord, and your tenant. Omitting these details can result in significant fines.
• The duration of the lease, and whether it’s a fixed-term contract or a periodic tenancy.
• The rent amount and payment terms, such as due dates and frequency.
• The details of the deposit and how it will be protected.
• Termination procedures and what happens to the deposit upon termination.
• The rights and responsibilities of both parties, so there are no misunderstandings or accidental breaches.

Insurance is a vital component of letting a property and should also be included as part of the documentation for the property. Comprehensive landlord insurance provides you with essential protection against various risks, from building damage and loss of rent to liability claims. Standard home insurance won’t cover rental properties, so securing appropriate coverage is vital for protecting your investment.

Managing finances

Ultimately, you became a landlord to earn a profit, so establishing a robust financial system should be included in your preparations. A standing order is the most reliable option and it’s more convenient for tenants, as they won’t need to remember to transfer the rent each month.

In addition to setting up a reliable method for collecting rent each month, you’ll want to keep meticulous records of all income and any expenses for tax season. It’s also worth setting up a separate business account so you can keep your rental income organised.