Demand for rental homes rose by around 25% in 2022, and competition among tenants is hotter than ever as potential buyers wait and see what house prices will do.
As rents continue to rise from a shortage of property, more and more young professional adults are looking to share a rental home in the Wilton & Salisbury area to save on costs without living in a tiny space.
Renting your property to sharers can increase your yield by having an income-earning tenant in every bedroom, but there are some things to get a handle on first, including:
With that in mind, this week’s blog has all you need to know about renting to sharers, so you can get everything right the first time around.
When you rent to sharers, you create a joint tenancy agreement that includes everyone who’ll be living at the property. The contract can be altered whenever one of the sharers is replaced (more on that later), and the following process will help you ensure you have the best tenants living at your property.
Don’t skimp on any of this. Thorough referencing is your best safeguard in accepting only the best tenants; a security deposit is essential in case of damage, and you’ll never win a dispute over the condition of your property without a signed and dated inventory.
Many landlords are still unclear when a shared home becomes a House in Multiple Occupation (HMO), but knowing the difference and your legal obligations is absolutely essential. Some things to consider include:
Bear in mind that some councils have selected licensing policies to prevent family homes from being turned into HMOs, so check whether your property is affected before doing anything else.
When multiple adults share a home, the specification needs to be up to the task. Picking the cheapest option is always a false economy, so prioritise years of reliable service to minimise the time and hassle of repairs. Consider the following when preparing your property:
Finally, make sure there’s enough cupboard space for things like food, a vacuum cleaner, an ironing board and a clothes airer, then take a look at our blog on attracting professional sharers to appeal to high-quality tenants.
When renting out your property to sharers, life is much easier with an agreed system for communication and management, from how the rent gets paid to dealing with the unexpected.
As with all tenancies, being organised, communicating clearly and keeping on top of maintenance and repairs creates a positive rental experience for everyone, where tenants take better care of your property and stay for longer.
In an ideal world, no sharer would ever move out in the middle of a tenancy, but the reality of life is that people move on in all sorts of directions. So expect a few move-ins and move-outs along the way, and use the following pointers to make those transitions as smooth as possible:
By ensuring that everyone who ever lives at your property goes through the same referencing process and signs the same tenancy agreement and inventory, you’ll avoid complications later on in the event of disputes or damages.
Are you thinking of renting to sharers?
Then let’s talk! Having an income earner in every bedroom could increase your income and yield, so if you own a rental property in the Wilton & Salisbury area, call us on 01722 580059 or message us at email@example.com to speak with our expert and friendly team.
Your investment could soon be performing better than ever!
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