Renting my property - some questions!

kosei

Hi all. I am looking at renting my studio apartment, as I plan to move and now is not a good time for selling. I have been reading up on this, particularly as I'd like to do it privately - I work for the local Council and would advertise it through our intranet, so I am not overly concerned about the possibility of having unruly tenants (although I am not saying that it won't happen).

I have understand most of what I've read, but there are some areas that I'd like clarification on. Firstly, I am not sure if I should be looking at a fixed term tenancy or a contractual periodic tenancy - I have read the explanations and I am still puzzled! I will be selling it at some point in the future, but I don't plan to do that (or move back) any time soon.

Secondly, I understand that a written tenancy agreement is only required by law for fixed-term tenancies of greater than 3 years, but I would still like one. I presume doing it myself would not make it legally binding - so, am I correct in thinking that I will need a solicitor to do this? If so, any idea approximately how much I should expect to pay for this service?

Thirdly, insurance - the buildings insurance is arranged by the managemant company for the block and I have confirmed that this will still cover the property if I rent it out. I currently have my own contents insurance for everything in my flat inc. my own posessions. When I leave/it is rented, I will be leaving some things - the bed, fridge, washer/dryer combi and the cooker (built in). I presume I will still need to insure these? Also, forgive my niavity but I have never thought about it for - are things like worksurfaces, cupboards, showers, toilets, etc, covered by contents insurance?

The flat is only one year old, everything is in working order and there is no gas. I know I have to get an energy efficiency check/certificate (whatever it's called, I've forgotten!) - is there anything I've forgotten?

I think this is all I have to ask about at the moment. Thank you.

neverdespairgirl

Do you have a mortgage?

If so, you will need your lender's consent to let it out. They don't have to give it.

Even if they do give consent, when you reach the end of a fixed term, you wouldn't be able to re-mortgage unless you have a buy-to-let one (typically, the rent needs to be 125% of the mortgage cost, and a hefty deposit).

Mutton_Geoff

Welcome to MSE. May I suggest you spend a couple of hours just browsing the board as there are hundreds of posts on this exact topic. As time goes on, you'll be digging into posts from dozens of amateur (and professional) landlords with all kinds of issues being discussed through to conclusion.

Then, after that try the 8th button along up there / and search for some of the terms you think may apply to you.

I suggest this because the most experienced people here are the ones you are most likely to learn from have already answered this question a dozen times.

Good luck!

kosei

neverdespairgirl wrote: »

Do you have a mortgage?

If so, you will need your lender's consent to let it out. They don't have to give it.

Even if they do give consent, when you reach the end of a fixed term, you wouldn't be able to re-mortgage unless you have a buy-to-let one (typically, the rent needs to be 125% of the mortgage cost, and a hefty deposit).

Yes, I do have a mortgage and I have investigated this - they have told me that I can rent on my current mortgage and that I'd just need to inform them and answer a short questionnaire if and when it is rented.

I was not aware that I would not be able to re-mortgage though. I am seeing an adviser on Saturday (although about a different issue) so I will ask them about this as it wasn't mentioned - thank you.

kosei

Mutton_Geoff wrote: »

Welcome to MSE. May I suggest you spend a couple of hours just browsing the board as there are hundreds of posts on this exact topic. As time goes on, you'll be digging into posts from dozens of amateur (and professional) landlords with all kinds of issues being discussed through to conclusion.

Then, after that try the 8th button along up there / and search for some of the terms you think may apply to you.

I suggest this because the most experienced people here are the ones you are most likely to learn from have already answered this question a dozen times.

Good luck!

Thank you. I appreciate that you are trying to help and wouldn't know that I have already looked through the forum - and indeed searched. I found some useful information which I have bookmarked, but no specific answers.

I will try again, but I am not asking out of laziness (nor am I saying that you are implying that...oh gosh, I really am digging myself a hole!) .

BrixMorta

kosei wrote: »

Hi all. I am looking at renting my studio apartment, as I plan to move and now is not a good time for selling. I have been reading up on this, particularly as I'd like to do it privately - I work for the local Council and would advertise it through our intranet, so I am not overly concerned about the possibility of having unruly tenants (although I am not saying that it won't happen).

I have understand most of what I've read, but there are some areas that I'd like clarification on. Firstly, I am not sure if I should be looking at a fixed term tenancy or a contractual periodic tenancy - I have read the explanations and I am still puzzled! I will be selling it at some point in the future, but I don't plan to do that (or move back) any time soon. Generally a new tenancy will initially be for a fixed term, say 6 months, after this, if left alone, will automatically become a periodic tenancy, unless you decide to do a another fixed term.

Secondly, I understand that a written tenancy agreement is only required by law for fixed-term tenancies of greater than 3 years, but I would still like one. Tenancies over 3 years, fall outside the housing act, so they will need to be in the form of a deed. If it's under 3 years you would be advised to use a proper AST which you can get from various sources. I presume doing it myself would not make it legally binding - so, am I correct in thinking that I will need a solicitor to do this? If so, any idea approximately how much I should expect to pay for this service?

Thirdly, insurance - the buildings insurance is arranged by the managemant company for the block and I have confirmed that this will still cover the property if I rent it out. I currently have my own contents insurance for everything in my flat inc. my own posessions. When I leave/it is rented, I will be leaving some things - the bed, fridge, washer/dryer combi and the cooker (built in). I presume I will still need to insure these? Yes, to be on the safe side. Also, forgive my niavity but I have never thought about it for - are things like worksurfaces, cupboards, showers, toilets, etc, covered by contents insurance? Any damage should be covered by the deposit from the tenant

The flat is only one year old, everything is in working order and there is no gas. I know I have to get an energy efficiency check/certificate (whatever it's called, I've forgotten!) - is there anything I've forgotten? Make sure any furniture you leave is compliant. Do a comprehensive inventory and schedule of condition, Protect the tenants deposit. Ensure electrics are safe.

I think this is all I have to ask about at the moment. Thank you.

I have missed off a fair amount of info that you should have as a landlord. You would be advised to know the subject fairly well before letting privatly, but best of luck.

kosei

BrixMorta wrote: »

I have missed off a fair amount of info that you should have as a landlord. You would be advised to know the subject fairly well before letting privatly, but best of luck.

Thank you. I would go with a letting agent, but I am concerned about the fees and therefore having to raise the rent on the property - bearing in mind it needs to be £400 (judging by current prices on 1 bedroomed flats) and I need just over £308 to cover my mortgage alone. I'll look into it though.

Ref insurance, I was thinking more along the lines of if something breaks down (through no fault of the tenant) - presumably that would still be my responsibility to fix? For example, if the shower or washing machine breaks.

Anything I've forgotten - more about 'checks' here, but thank you for the info. Everything I'm leaving is what was bought with the flat so I would presume it is compliant, but I'd better check things out.

kosei

Reading more in to it, it would seem that it would be wise to use a letting agent even to begin with. This disheartens me somewhat as it means putting the rent price up so that there is enough to cover the fees, but that is a better option than messing around with things myself.

I can always advertise through the intranet still anyway and just direct people to the relevant agency I suppose! Thanks for all your advice.