Finding the Right Tenant, Plus Advantages and Disadvantages of Letting a Room in Edinburgh
There is an increasing trend among people these days to let out rooms in their property. Government has introduced rent-a-room schemes which offer clear tax advantages. This has further increased this trend. However, it is important that you take necessary steps to get the right tenant and enter into the right kind of agreement.
Advantages and disadvantages of letting a room
The government has fixed a limit and if the rental amount is under this limit then you are exempt from any kind of tax. This means that you will not have to submit a tax return at all. However, if the total amount (including expenses) is more than this limit then you still have to declare it and pay a tax on it.
People who can rent out rooms in their property
If you have a property on mortgage then you must first check with you lender to see if letting out a room is within the terms and conditions. If it is, then you can surely rent out a room. Moreover, you can also use the scheme if your house is also on rent. The term of your lease must allow you to do so. Lastly, if you own the property and also use it as your main residence, you can still take advantage of the scheme.
Finding the right tenant
In order to find the right tenant you should advertise for your property in all the right places. Use local newspapers, college/university boards, internet etc. Adding in photos of the property will also help you. Advertisements with photos attract more tenants and the ones contacting you are aware of what to expect. It is important that you describe your property in an attractive manner, highlighting its features. If it has cable and broadband connection, you should mention it. Also describe the transport, dining and shopping facilities around. If you are interested in a particular kind of a tenant, e.g. student or a professional then you must add this as well.
You must arrange a meeting with potential tenants in order to select the one who is more likely to pay the rent and is close to your ideal tenant.
Entering into a right kind of an agreement
The tenancy agreement must have details of all the rights and responsibilities of the tenant, so that both the parties know what to expect from each other. This should include the period of the tenancy, the deposit, set period of notice in order to terminate the contract or vacate it etc.
LauraCampbell - About Author:
Laura Campbell is a marketing officer for Greenlet, property lettings website in Edinburgh. If you want more information on for rent edinburgh, please visit edinburgh student flats.
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