As a landlord, your property comes first and the rent you accrue should reflect the same. For you to continue enjoying the rent, the tenant must continue to pay his or her fees when it’s due.
To ensure this happens as planned, it is important to draft a lease agreement signed and registered as per the landlord and tenant regulations. In addition to the tenant agreement, here are some of the key considerations before leasing out your property for rent.
Tenancy agreement
As this article on NetLawman.co.uk explains, a lease is an agreement between a landlord and tenant to use the property for a specified period. This is done through a lease agreement. You can find various lease agreements that contain common express and implied terms under UK law for your benefit. You can download a template from the site and you have the option to edit it.
A lease agreement should have parties, consideration, implied terms, and special conditions. Other factors, such as the capacity of the parties, must be made clear. After the lease is understood, the landlord and tenant should sign and register.
Sublease
A sublease can be made as a special or general condition in the tenancy agreement. A sublease is a successive lease made by the tenant to another tenant. This is a common scenario in the UK, especially with commercial property.
An individual may enter an agreement to lease a mall or a floor of a building and decide to rent out some or all of the space to different parties. The original lease still exists and its obligations must be fulfilled regardless. However, the lessor and the lessee must agree in the original contract to be allowed to sublet to other tenants and make it crystal clear.
Deal with insurance
Landlord insurance is an important aspect because it protects your property in case of damage or other factors. Before letting your property, make sure to inform your insurer because policies change from time to time. Insurance issues must be followed up even during the subsistence of the lease.
This is an arrangement between you and the insurance company. Although landlord insurance is not a legal requirement before leasing property, good practice suggests you take one because it will protect you from large outstanding rates or absentee tenants. You will be at peace when you know you will be compensated in case of anything.
Perform your legal obligations
Apart from performing the obligations presented under the tenancy agreement, there are other laws you need to comply within the UK. The legal duties can range from municipal land rate regulations, immigration laws and policies, tax obligations, and safety regulations, which should be in the lease agreement.
Long outstanding government land rates and rents can have substantial consequences of impeding your regular income. Similarly, it is your obligation as a landlord to pay an annual income tax of 2500 pounds. It is important to follow up on the new policies and laws affecting commercial property because there is something new every day.
Zoning laws
The government, from time to time, makes plans on how its urban areas can be developed. Zoning places restrictions on what landlords can develop by subdividing the different locations for different purposes. This is done through regular enactment of legislation on the same.
Property can be residential, agricultural, or commercial. Before leasing out the property, one should inquire with the government about the proper development they are allowed to.
They should also find out about future plans of the city or municipality because zoning laws may change from one form of property to another. These initial steps should help the landlord to make the right call.