You really, really need to know how to operate within the law as a landlord...for example having a gas safety certificate issued annually, carbon monoxide detector etc.
In addition to placing the deposit into one of the government schemes, you must also provide the ‘How To Rent’ booklet to the tenant (or risk having to reimburse them up to 3 times their deposit.)
I strongly suggest that for any tenancy, just have the initial term for 6 months; you can see if it works for you both (and to see if the tenant pays in full, on time - NO excuses - you are effectively running a business and not their friend or they may walk all over you. If you are satisfied that they are keeping to the terms of the tenancy (and keep the house and gardens neat and tidy, not a nuisance to the neighbours etc.) then you can let the tenancy roll over after 6 months; this means that you still must give the tenant 2 month’s notice but they only need to give one month.
You need to have an EPC rating to show the tenant.
Strongly suggest you read the Landlord’s ‘Residental Lettings Qustions’ forum on www.landlordzone.co.uk to read the ‘stickies’ at the top and see the problems which some LLs encounter (and could have avoided).
Strongly suggest you join a LL Association eg. The NLA/RLA (you get free advice) and they have things like free distance learning modules (on how to be a landlord). If you need to evict a tenant you must be absolutely correct in the manner in which notice is served (a text message certainly will not do!) and you have to decide between a Section 21 or if eviction for non-payment of rent, a Section 8. Some LL’s issue both simultaneously. One minor mistake and the Courts will throw out your request and you start again from scratch....this could take many weeks/months.
Your spouse will need to complete “Income from Property” form on an annual tax return. Also Capital Gains Tax will be payable when the property is sold (as not the owner’s main residence) and the date begins from the date the property is rented out.
Your spouse really should have approx 5k in accessible funds for things like boiler breakdown, voids and eviction costs. Expect to have at least one month’s void between tenants.
Best to take out dedicated Landlord’s Insurance - you can take it out for buildings only if you are not furnishing the property. You can even insure for tenants not paying rent, but AFAIK this is usually limited to tenancies being managed by a letting agency and that the tenants income and references have been fully checked out. You can even take out LLs insurance for example, if the building becomes uninhabitable eg. Due to a flood or tree falling on the house and you have to pay for the tenants to stay in other accommodation until repairs are done.
What about ‘white goods’? Is there a washing machine and tumble dryer? Dishwasher? Are you prepared to pay for repairs or replacement if broken? This can be expensive, especially on call out fees. Few landlords provide these items these days because of this (as most appliances aren’t built to last). LL’s tend to pay for repairs on built in appliances eg. Oven and now prefer the tenant to provide their own washing machine, fridge/freezer etc. I do know that some LLs ‘gift’ appliances to their tenant on a take it or leave it basis, ie they will not pay for repairs or replacement and the tenant is free to take the items when they move out.
Do you have a contract for boiler servicing or repair? Note that you will need to arrange for an annual service.
Most LLs allowing pets do take an increased deposit in case of damage caused by the pet/s. Also best to get it written up that carpets will be professionally steam cleaned at the end of the tenancy (and fumigated at tenants cost if necessary). Best to meet the animal if it’s a dog.....see if it is placid or a boisterous/yappy dog which will drive the neighbours insane. Will the dog be left for hours on its own? (There could be barking due to separation anxiety/boredom) or destructive behaviour.
Good Luck!