Pulling house off the market - now going to rent it out...

apcorbett

Right, I've had the flat on the market for 6 months, and despite it being very cheap, no-one interested as it has only got 57 years left on the lease..

So, I'm going to get the lease extended, which will take up to 24 months (the owners are in Paraguay, and will take the maximum possible time), and I'll rent it out in the meantime to cover my mortgage costs.

A couple of questions..

1. Is it better furnished, part-furnished or completely empty
2. I've heard that it is possible to let the local council rent it out for you, basically saving the hassle of getting an estate agent (or similar) to manage the property
3. Could it all be done myself?

Thanks!

meanmachine_2

Yes, lease extension is crucial on your position.

I wouldn't even look at a property that had such a short lease.

As for the other questions, get a lettings agency or two to have a look at the place and ask them these questions. You don't have to use them if you don't want to.

Innys

In response to your questions:

1) Depends on the type of tenant you are after. However, I would check with the Inland Revenue if furnished and unfurnished are treated the same for tax purposes - I don't think they are. This may influence your decision.

2) This may sound non-pc, but I never let through the council. Their tenants are generally less "responsible" when it comes damage to the property. If you let to non-council tenants, you can meet the prospective tenants and decide whether or not you want them living in your flat.

If you are able, you may be able to manage the letting yourself, especially if it is a relatively new property in good condition. If not, a letting agent will do it for you and charge you - typically 10% of the gross rent, plus however much the tradesmens' costs are.

3) Yes, see above. However, you may need some flexibility in your day job to deal with any problems which may arise.

Joannaclaire

No idea about question 1 or 3 but I can help with question2 based on my experiences.

No, whatever you do, do not let through the council. The studio flat above our bedroom is let through the council and it is always full of people who are committing benefit fraud (as they never actually live there but their mail and dole letters go there) etc as the council doesn't care as it doesn't own the property. There is a high turn around as they tennants tend to be people who are not responsible and are aslo often fly-by- night types who disappear suddenly.

The flat has been dammaged - carpet ripped up, gas pipes meddled with by mentally unstable tennants and when they scarper it is always filthy, covered in cigarettes and beer cans etc.

We are constantly getting bailiffs knocking on the door re a tennent who has scarpered leaving utility and other bills in arrears or else lots of mail from debt collection agencies and also from the courts trying to track down previous people who haven't paid their bills or are wanted for more sinister reasons.

There have been at least five tennants there over 2.5 years - I'm beginning to loose count. It brings down the tone and of the house (converted into flats)as all the other flats are owner occupied or long term private rentals.