Having been renting out a number of properties for some years I'd go along with most of the advice given, especially regarding being a good landlord! Be proactive and ahead of the game on addressing potential problems that may arise. As a simple example, get the gutters cleaned in the autumn and don't wait for the tenant to tell you there is a problem. Make sure you let them know you have done this. This is a double gain as the tenant feels cared for and is less likely to move on, and you get to write it off against your tax liability.
When drafting the lease put in a clause that the tenant(s) are liable for a professional clean on moving out, this to include the oven and carpets/curtains. Be up front on the likely costs of this and be willing to provide receipts for previous tenants if asked for. Most tenants are happy for this cost to be deducted out of their deposit so just agree (in the lease) that you will submit the receipts to the agent/tenant and the agent will then deduct these costs before the remainder of the deposit is released.
Also make sure that the tenancy agreement has a clause for a rent review after 12 months and a professional inventory check-in/check-out is essential to avoid any dispute regarding any damage that may have occurred. Be realistic with the rent review - getting a 5% PA increase is not a dead cert anymore. That said, we have just undertaken a rent review on one property and used the current RPI of ~5% as justification and the tenants were happy with this
As to references, we always request these and also require a credit/security check. Additionally, we would never let out unless we have met the potential tenant though this may not be so simple in your case. The costs of these checks are bourne by the tenant.
If you have a good relationship with your existing tenant do ask them for a reference on yourself as a landlord when they move on. A good reference for yourself is reassuring for any potential tenant and can swing a decision in your favour in a weak market.
For those with the time/inclination short-term business lets can be a lucrative rental market. Rents are roughly twice that of 'traditional' lets though you need to consider your market carefully regarding potential demand in your area. You will also be stung with higher agent fees (10-20%) and may have increased void periods. Only consider this if you are sure the demand is there and take a low base-line figure of 50% occupancy and then do the maths to see if it is worthwhile. In our case the demand is there with a large number of people coming to the area on secondment and not wanting to stay in a hotel for 3-6 months. Overall, we get a 75% higher income by doing this over a standard let. However, if you later find out the demand is not there (if you do your research first this shouldn't be the case
) you can always fall back on 'traditional' letting to cover your costs.
Good luck,
WF