Unlocking Property Potential: The Art of Private Owner Renting



The Insider @ Houst
Last updated on
August 2, 2023
July 27, 2023

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Unlocking Property Potential: The Art of Private Owner Renting

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Renting your property without involving an estate agent has many advantages. DIY landlords stand to benefit significantly, saving hundreds and even thousands of pounds annually by eliminating letting agency fees. Also, fostering a direct relationship with tenants over time builds a strong sense of trust, often leading to longer tenancies, further reducing tenant turnover costs.

Embracing the role of a private landlord also means avoiding the hassle of dealing with disorganised letting agents, who may prioritise their financial interests. Moreover, you will only rely on familiar tradespeople whenever property maintenance or repairs are required.

While forgoing the services of an agent does entail taking on a few responsibilities personally, they are generally straightforward, carry their rewards, and result in substantial cost savings. In this guide, we'll walk you through the process for a private owner renting houses. 

Table of Contents

Find a Tenant

When it comes to finding tenants, private landlords have a couple of choices: they can either personally advertise their property or opt for the convenience of a cost-effective advertising service.

During the tenant search, private owners seek responsible and reliable tenants to occupy their residential property. They advertise the property through various channels, highlighting essential details like location, amenities, and rent. To assess applicants ' suitability, thorough tenant screening includes rental history, employment status, income verification, credit checks, and references. Setting clear requirements upfront streamlines the process, and interviews with potential tenants allow private owners to get to know them better and address any concerns. These practices allow private owners to find tenants likely to fulfil their rental obligations, ensuring a successful and harmonious renting experience.

Efficient Property Viewings - Private Owner Renting Insights

Efficient Property Viewings

Regarding viewings, there's no need to rely on an agent's assistance when you can handle them yourself, engage someone you know in the vicinity, or opt for a professional viewing service. Conducting viewings independently is especially straightforward if your rental property is vacant. Simply arrange a convenient time to meet prospective tenants at the property and confidently showcase all its positive aspects.

Should your property already have a tenant in residence, it's essential to inform them beforehand about each scheduled viewing. Respecting their space is crucial, so expect the property to be reasonably tidy but lived-in during these visits. Considering the timing of viewings is equally important, it's only fair to avoid disrupting tenants during dinner or early on a Saturday morning.

As a private landlord with geographical constraints or other commitments, you have options to ensure smooth viewings. Entrust a trusted friend or relative to conduct the viewing on your behalf if they are nearby. 

Tenant Referencing 

Tenant referencing is crucial in finding reliable and trustworthy tenants for your property. Traditionally, letting agents handle this process, advertising your property, conducting viewings, and carrying out reference checks, but at a considerable cost. Typical agent fees for referencing alone can amount to a hefty £70-80.

Tenant Referencing - Private Owner Renting Guide

Writing a Solid Tenancy Agreement

While a willing and amiable new tenant may seem like an ideal match, skipping the paperwork is not an option. Tenancy agreements are a legal requirement that safeguards both the tenant and the landlord. Maintaining a clear and well-documented landlord/tenant relationship is always the wisest action.

You don't need to incur solicitor fees to draft a tenancy agreement. Numerous online resources offer templates. The NRLA (National Residential Landlords Association) and the Model Tenancy Agreement provided by the Government website are excellent examples. These templates are designed to cover essential aspects of the tenancy.

Rent Collection

When finalising the tenancy agreement, key considerations involve determining the deposit amount, setting the monthly rent, and specifying the preferred payment method. While most tenants are reliable, relying on manual payment methods like cheques or direct bank transfers can be uncertain.

Requesting your tenant to set up a standing order is highly recommended to streamline the rent collection process. This way, they won't have to actively remember to transfer the rent each month, ensuring timely payments without any hassle. By establishing a standing order, you create a convenient and automatic system that helps avoid the need for frequent reminders or awkward discussions about late payments.

Repairs Managemen

During any tenancy, occasional hiccups are bound to occur, be it a leaking water pipe or the need for an annual gas safety check and boiler service. While letting agents may appear to offer convenience by handling these matters for you, the reality can be quite different.

Delegating repairs to agents often adds unnecessary stress, as they may mistreat tenants and withhold vital information from you. Also, their services come at a cost, as they engage their preferred tradespeople and add a premium to the final bill. This approach may leave you uncertain about the quality of work done by the electricians, plumbers, or builders they employ.

Taking control of repair management can be a more beneficial and cost-effective approach. You foster a better landlord/tenant relationship and ensure transparency by directly communicating with tenants and promptly addressing any issues. Moreover, managing repairs allows you to choose trusted tradespeople you have confidence in, ensuring that maintenance work is carried out to your satisfaction.

Why People Choose to Become Private Landlords - Insights

Why People Want to Become Private Landlord? 

Becoming a private owner renting houses can be driven by a variety of reasons, each offering unique advantages and opportunities:

Financial Flexibility

Some individuals become private landlords after their children have grown up and moved out. Rather than selling their family home, they choose to let it out as a source of extra income, providing them with financial flexibility for other ventures or retirement.

Property Market Challenges 

In some cases, selling a property might prove difficult due to market conditions or personal circumstances. Opting to rent it out instead allows the property owner to hold onto the asset and potentially benefit from future price appreciation.

Career Change

Becoming a private landlord can be an appealing career shift for individuals seeking a change in their professional life. The idea of managing properties, interacting with tenants, and building a portfolio can be enticing for those looking for a more hands-on and entrepreneurial venture.

Investment Strategy

Purchasing a property as an investment on Airbnb and choosing to let it out is a common strategy among private owner renting houses. The rental income generated covers the second home mortgage and, ideally, generates additional profit, making it an attractive long-term investment option.

Retirement Planning

Some individuals view private property ownership as a means to boost their retirement income. Renting out properties can provide a steady stream of cash flow during retirement, ensuring financial stability and security in their later years.

Houst - Your Ultimate Property Rental Management Solution

Discover the ultimate property rental management solution with Houst. Our services take the stress out of property ownership, handling everything from tenant onboarding to repairs and rent collection. With Houst, you can enjoy a worry-free experience while we maximise your Airbnb revenue through sophisticated pricing strategies and expert market analysis. Whether you have short-term rentals or long-term lets, we ensure a premium guest experience, garnering excellent reviews and repeat bookings. 

Our professional property marketing techniques guarantee your property gets the exposure it deserves, attracting quality tenants or guests. Stay informed with our transparent reporting, offering real-time insights into bookings, earnings, and expenses, empowering you to make informed decisions effortlessly. Plus, with Houst, you can rest assured that your property remains compliant with all legal regulations, freeing you from the complexities of rental laws. Whether you're a seasoned investor or a new landlord, Houst is here to make your property management journey easy, efficient, and highly rewarding!

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at expert@houst.com.

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at expert@houst.com.