First time letting

Microstar_2

Pizzaboy

Essentially you are starting a small business, not a new hobby. Don't be laid back about it. Spend hours and hours reading until you understand all the ins and outs of it and what your responsibilities are. Don't try to take any short cuts or economies with the truth, they will come back to bite you on the backside. Alarm bells are ringing with me when you talk about letting to friends :eek:
In your situation you are probably best going to a LA initially, but try to find one on a recommend (possibly a LL close to you via a forum?). But be careful with LA's, 95% of them are leeches, you need to find one of the 5% that know what they are doing and won't sting you for high fees, dubious admin charges etc.

pizzaboy

Microstar wrote: »

Pizzaboy

Essentially you are starting a small business, not a new hobby. Don't be laid back about it. Spend hours and hours reading until you understand all the ins and outs of it and what your responsibilities are. Don't try to take any short cuts or economies with the truth, they will come back to bite you on the backside. Alarm bells are ringing with me when you talk about letting to friends :eek:
In your situation you are probably best going to a LA initially, but try to find one on a recommend (possibly a LL close to you via a forum?). But be careful with LA's, 95% of them are leeches, you need to find one of the 5% that know what they are doing and won't sting you for high fees, dubious admin charges etc.

Thanks for the advice,ill be honest i wasnt thinking of renting...i had the house up for sale as i will be moving in with my partner shortly,and have had no interest with current EA so was going to try a new one when my brother says i know a couple who are looking and they love the house,so its all a bit sudden and maybe im not taking it too seriously....i will now though.

Microstar_2

Pizzaboy

Being doing the lettings for 30+ years. My advice is to treat it as a business from the outset (even if you are an 'accidental landlord'). Put together a business plan and put figures into a spreadsheet so that you play about with 'what ifs' (i.e. what if my mortgage rate goes up 2%).
Factor in ALL costs - that's LA fee, LL insurance (which could be more than you expect), gas and electric certifications etc. If furnished be aware of rules and regs. Factor in maintenance, remember if boiler goes belly up then you will have to have it repaired and tenants will expect it fixed PDQ, not when you 'can afford it', ditto burst pipes in winter etc. If you go through a LA then they may arrange for repairs and add a mark up and/or 'fees'. Things that you might put up with (dripping taps, window that won't open, dodgy thermostat on CH) the tenant might contact LA about and want fixing.
Also let your lender know that you are letting.

I know they are brother's mates, but that may not reduce their expections. Some people can be surprisingly picky!

pizzaboy

Microstar wrote: »

Pizzaboy

Being doing the lettings for 30+ years. My advice is to treat it as a business from the outset (even if you are an 'accidental landlord'). Put together a business plan and put figures into a spreadsheet so that you play about with 'what ifs' (i.e. what if my mortgage rate goes up 2%).
Factor in ALL costs - that's LA fee, LL insurance (which could be more than you expect), gas and electric certifications etc. If furnished be aware of rules and regs. Factor in maintenance, remember if boiler goes belly up then you will have to have it repaired and tenants will expect it fixed PDQ, not when you 'can afford it', ditto burst pipes in winter etc. If you go through a LA then they may arrange for repairs and add a mark up and/or 'fees'. Things that you might put up with (dripping taps, window that won't open, dodgy thermostat on CH) the tenant might contact LA about and want fixing.
Also let your lender know that you are letting.

I know they are brother's mates, but that may not reduce their expections. Some people can be surprisingly picky!

Thanks again, i will be meeting the couple in very near future to thrash this out,and will try and find a decent LA most stuff -windows, heating ,windows is all less than a year old but things can still go wrong like you say,so i have to tell mortgage provider as well,that im letting ok,will that incur any extra fee's?

We kind of already agreed a price,but they realise they may have to pay more after intial 6 months if they want to stay longer.

tbs624

pizzaboy wrote: »

Is there a check list of things i need?

on here somewhere maybe.

Check out https://www.landlordzone.co.uk

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/RentingAHome/index.htm
(pay special attention to the issue of tenancy deposits)

http://www.hse.gov.uk/gas/domestic/faqlandlord.htm

Join a LL association - you can set the m'ship fee against tax and you have access to documents and lots of advice. There are national ones, and local ones that are affilates of the national ones. Google RLA, NFRL,NLA etc. There is also Tessa Shepperson's excellent landlord law site.

Do not just download some random TA from the 'net : some tenants who know the game better than you do have the capacity to tie you in knots.

Microstar_2

pizzaboy wrote: »

so i have to tell mortgage provider as well,that im letting ok,will that incur any extra fee's?

We kind of already agreed a price,but they realise they may have to pay more after intial 6 months if they want to stay longer.

Yes, get on the blower to your lender first thing tomorrow. They may (or may not) have a surprise in store for you - I'm sure there'll be some fee or other, or even a higher interest rate, but that's not my area of expertise.

Bit dangerous to agree a price before you know your costs. I would try to backtrack on that one if at all possible until you know all the figures.

pizzaboy

Microstar wrote: »

Yes, get on the blower to your lender first thing tomorrow. They may (or may not) have a surprise in store for you - I'm sure there'll be some fee or other, or even a higher interest rate, but that's not my area of expertise.

Bit dangerous to agree a price before you know your costs. I would try to backtrack on that one if at all possible until you know all the figures.

Thanks i may even knock it on the head for now and tell them they cant have it,or wait till im in a better position,lot to think about.

Bungarm2001

pizzaboy wrote: »

Thanks i may even knock it on the head for now and tell them they cant have it,or wait till im in a better position,lot to think about.

Phew!! Thank gawd for that...that is the most sensible thing you've said/posted...!!

Think, think and think again before you even think about letting your property..!