GroupNGC8

iTrader: (1)

Can anyone offer pointers of do's and dont's please?

I want to let out my house but not sure whether to go through an official estate agent or try to do it myself? I can download shorthold tenancy agreements but are they worth the paper they are written on if anything goes wrong with a tenant?
Apart from getting a certificate for the gas boiler & fire is there anything else to consider - apart from declaring the income - or are there ways to reduce the tax?

any help much appreciated.

Cheers.

cookstar

iTrader: (6)

My sister in law recently rented her flat out, and I advised her of the same, IMO I would always go through a respected letting/management agent if you don't know what you doing. It will maybe cost you 5% of your monthly rent but worth it. The packs you can get from WH Smiths etc are rubbish.

There are so many scummy people about that know the property law to the letter but don't come across as such until the $hit hits the fan then it all becomes apparent that you maybe forgot to get a certain legal document or notice signed in advance then your stuffed. Leaving you with 0% of your monthly rent for some time.

Many may disagree but thats the route I would go down, its a huge investment and I would want to minimise the risk as much a possible.


Good luck.

TopBanana

SELL SELL SELL!

rossyboy

iTrader: (8)

I'd be amazed if it only costs 5% of rent to go through a letting agent. Around here its more like 10-15%. That may include the full service though.

They might also charge a "finding and vetting" fee for the tenant.

cookstar

iTrader: (6)

Sorry what I meant was the management side of it normally is on a 5% drip basis with a 5-10% introduction fee payable on signing of contracts

zs_phil

iTrader: (1)

i dont think houses are selling now are they ,there is stacks around here thats been up for sale lately we was looking into buying a bigger house but waiting to see what happens hopefully houses will crash down again

ChrisB

If you bought the hosue and lived in it, you have to "learn" most tenants will not take the same care of the house as you might have done yourself.

I pay 10%/month management fee.

If it's a easy house to get rented (size, location etc), then I would keep it right now. If people are not buying due to all the doomsday predictions, then people must need to continue renting and some people will need to move around (contract works, doctors etc).

Luan Pra bang

most letting agents are crap and don't give a toss about your house. Don't rent to someone unless you are sure they are nice respectable people. THe charge is usually around 1 months rent a year any more than that then suggest you can get a better deal elsewhere unless they can offer to guarantee the rent in the event of any problems with the tennant.

MattN

We used an agent to find a tenant and do the legals. That was it.
Money paid direct and proble,s reported direct.

Let's face it tenant gets a leak, call the management agent who call a plumber - not bad for 10%.

You can get insurance for non payment of rent etc. Personally have never seen the point of paying for the management side of things, unless you are either away alot or cannot make phonecalls yourself (I.e. work shifts, kids etc.).

And rented houses seem to take a pounding when it comes to wear and tear!

Smiler

Nine posts in and no one has let mentioned that you should only go with an agent who is ARLA registered.

Pros? You get someone else to pay your mortgage

Cons? Plenty. What happens when your tenant stops paying the rent but won't move out? What happens when they do move out but leave £1,000's of damage.

It's not all plain sailing, and the fact that you don't know about what you can offset against possible tax tells me you haven't done your research.

Read up on ARLA registered agents, Landlord Associations, and have a look here

Diesel

I sacked my agent a couple of years back. Amongst other incompetences and shennanigans they witheld 3 months rental for 10 months as they alleged they had 'made a mistake' a few years ago! They hadnt... So whatever you do dont use The Property Bureau - as highlighted in the Daily Mail... All maintenance quotes were clearly from mates and ridiculous. Best thing I ever did was sack 'em. Put an end to all the tedious letter writing and accounts checking, and I'm a couple of grand better of PA.

However you may want to use an agent for your first year so you can see the contracts etc and how it works. Liker any estate agent type, watch them like a hawk, double check everything, dont allow them to call you 'mate', get everything in writing (etc, etc) and never trust them. Also tell them to get stuffed if they ask for comission if your tenants ever want to but the house though. Cheek!

D

(yes you can tell I've had bad experiences!)

Dave Bullock

[QUOTE=Smiler;7822205]
Cons? Plenty. What happens when your tenant stops paying the rent but won't move out? What happens when they do move out but leave £1,000's of damage.
QUOTE]

We have insurance for this through the agent now. Been stung in the past took 4 months to get someone out through the courts. I put some of his stuff outside the front door in the rain when he was eventually leaving so that I could lock up and leave and he went up the bl@@dy wall. Cheeky Git!

Best bit was his Dad was a vicar and he was doing exactly the same in another house!

He paid £10.00 of the £3,400.00 (back rent & damage) that he owed us and then dissapeared.

Brit_in_Japan

Do you have anyone you trust who lives near to the property who would manage the property on your behalf, everything from doing inspections, creating inventories/condition reports to getting plumbers in to fix leaks etc.? If so then there are agencies you can go to who will advertise for tenants and do credit & reference checks all for a set fee. After that the tenant would pay you the rent directly and your friend/relative would manage the property on your behalf. Bear in mind that the property has to be managed 365 days a year. If there is raw sewage floating around your bathroom then it needs to be sorted right away.

If you don't have anyone who could take on that role, then lettings agents are your only option. They will take 10-15% of rental value each month. I was paying 12% when I was in Japan. Not all lettings agents are the same, some are pretty poor so it's worthwhile finding a good one.

You need to get the mortgage lenders permission to rent out your property (c£100-150). You need proper landlords insurance. Legal expenses insurance highly recommended in case you get a rogue tenant. You can end up seriously in the **** if you take matters into your own hands and throw a tenant out without all the legal niceties having been completed. If the tenant knows the law, they could hurt you financially big time if you evict them "illegally".

Ultimately your experience will come down to the tenants you get. One mate, a solicitor who lived a mile away from his property, got well and truly stuffed by one set of tenants and sold his property as a result. Others have had properties let out for years with no problems.

rossyboy

iTrader: (8)

In theory Truth is, its unlikely they will find out if they continue to get their monthly payment.

Luan Pra bang

I have found the best tenants to be East europeans. They pay on time keep the house clean and are easy to deal with they also fix small problems themselves. Watch out for Bulgarians and anyone from any where in central africa.

jods

My bill from management company last month was £500.


That included the Management fee, Gardening. Pool cleaner, Air con repair, Housekeeping and a welcome pack for guests on a 40th wedding anniversary.

Normally costs around £200 - £300 a month

==================

Further to LPB post - Be wary of Nigerians

wiltshire_boy

I agree with the above - we use RLA : Residential Landlords Association after getting fed up with the estate agent taking cash for doing **** all. Membership of the RLA makes things like the new deposit scheme less of a pain and they give free advice on any disputes.

orbix

Don’t forget about the electrics. There’s no legal requirement to get them checked but a gas and a electric test only costs around £100.
Some management agents require you to have a NICEIC report done every 5 years. They test all of the house electrics when doing this.

If the house to be rented out is in need of repair and if you can, rent the house out first and then do the repairs. This way the costs involved will be tax deductible. If you have the repairs done before you start letting then I believe these costs are NOT tax deductible.

If you decide to management the property yourself then you should join an landlords association group so you get regular updates on any laws that change.
Most of them will have a helpline as well.

You may want to change your mortgage to a interest only one as well.
Best thing is to probably buy a book and read up.

GroupNGC8

iTrader: (1)

Thanks to all who replied, some good comments to think about - still intersted in more views though

I already have some close family renting the house but they are due to leave in July so want to get sorted out, but the pitfalls of finding the right renters is a bit daunting if I pick the wrong ones.

Cheers
Rob

s70rjw

iTrader: (2)

I had a bad experience. 10 months with no rent through an agent. Lost £8000 in income over that time. Incompetent solicitor(mis) handled the eviction. They asked for £2k which they wrote off when I queried their negligence. Find an agent who guarantee your monthly rent if the property is vacant, or the tenabt defaults payment. I had another 2 tenants who left without notice.
Many will suggest they would "sort things out themselves". The law, as ever protects the wrongdoer and the non paying tenant has more rights than the out of pocket landlord.
I was unlucky. Many live happily off their rental income. Bob