First time landlord - Advice :)

As is going to be repeated over and over again, do your research on the legislation, and call a few LA's and honestly ask them how much demand they get for that potential area, most will be willing to have a chat with you about it, as you are a potential customer.

Be realistic about the price, the biggest mistake landlords make is trying to overvalue a property to cover a mortgage, and end up having to wait to get a tenant, price realistically, and with a bit of comparable research slightly UNDER or ON the market value and ensure the void period on the property is as small as possible, one empty month at a property will cost you more than waiting for someone to take it at a higher price as a general rule. A long term tenancy at a lower rent is far far superior to a short term at a higher price, even without void periods as you still have to repay the LA's fees. Some LA's will value a property too high to sucker you in, only to leave it empty and then get you to drop it to a reasonable level.

The figures you have quoted seem very reasonable, but fees can vary so much from area to area in the UK, its simply easier to phone about and find out for yourself, but bearing that your LA needs to be competant, and should absolutely be a member of an assocation such as ARLA or NALS, OEA etc.

The various options you have being Introduction, Rent Collection, and Full Management are pretty much;

Introduction; LA will market and find a tenant, complete references, advise you of necessary works or pre-tenancy basics (CP12 gas, Inventory etc), draw up a tenancy agreement, and sign the tenant in.
Rent Collection: As above, but the agency will collect the rent on your behalf, and chase up any arrears.
Full Management: The agency will act as proxy landlord and will ensure the essential maintenance is conducted, inspect the property on a regular basis, check the tenants in and out of the property A delegated limit on the cost of these repairs will be agreed with the agent.

The main thing is to understand that an investment property doesn't usually meet a mortgage or exceed it, and that you will subsidise it a little, if not in fees, maintenance, and other miscellaneous. Profits tend to come from when the mortgage is paid off and you no longer have that outgoing.

All this being said, dedicated lettings agencies are getting a good deal at the moment, more property from those who can't sell, and more tenants from those who can't buy, so the market is still strong and will probably continue to do so until the housing market settles down... which is to say.. a while yet.

EDIT: Its usually recommended for first time landlords to take a managed service, if you are feeling lazy about reading up on legislation, but if you are willing to do the work then introduction should be just fine, but take out rent guarantee insurance, with legal costs cover, getting the rent covered is fine, but its the legal costs that will cripple you if you ever need it.

tbs624 wrote: »

No-one letting property out should be complacent about the legislation involved, even if using a fully managed service: as LL *you* are ultimately responsible if it all goes belly up. Yes, you can try suing the LA for failing to do what you were paying them for, but it's you that the tenant will pursue in the first place.

Because LAs are often as ignorant on some areas of LL &T as a newbie LL might be you cannot guarantee that they will be doing what is required on your behalf. No qualifications, no training, no specific experience, no regulation necessary.

I completely agree noone should be complacent, but as the OP has bought the property already, if he IS lazy , then managed is the way to go, since its too late to think again about the investment. The ideal situation is to be on the ball, and do the research but the honest truth is that most landlords cannot be bothered (majority of the posters excluded).

The choice in agents is an important choice, and hopefully the OP will ask some awkward questions of the agent and see if they can answer competantly regarding legislation, and as said, they should at least be a member of an assocation.