New to being a landlord (lady!)

cjfc30

I'm wondering if anyone has any advice for me about becoming a landlord? I've recently inherited half a house so am taking a buy to let morgage out on the other half . . . For instance is it true you need a HIPS pack to rent? If I use a management company what would be a fair tennant finders fee and monthly % for full management??? I'm just not sure where to start, any help would be greatly appreciated.

Bf109

Hi. You are proposing a business venture - you need to know about the business you are stepping into thoroughly otherwise you are going to get burned.

Just asking on an anonymous internet forum isnt really enough. You need to thoroughly research all the lesgislation and regulation with regards to renting before you go ahead with this.

Good luck.

moneysavingallday

There are so many landlords out there who are just horrible. Renting out shoddy crummy flats for overinflated prices and acting like they're somehow a superior species just because they own some ropey house or flat. Make sure you don't become like that and you will do just fine

neas

i believe management fees was mentioned to be around 9-11% for my current landlord.

Read up on the law surrounding tenancy.

For instance when you get a deposit... make sure it is protected in the tenant deposit scheme... otherwise you could get fined 3x deposit worth.

Be aware it would be your responsibility to have buildings insurance, have the boiler checked yearly (Corgi registered) and repair any broke equipment down to wear and tear.

Not all tenants are nice too..

Just making you aware :P

poppysarah

You def need to do some research before you take out any debt - it is a business and a serious one.

Why not sell your half and use the money to create a business in an area you know something about!

neilD

Full management upto say 15% per month. Initial set-up fee around 100 pounds, 4 bedroom house inventory is around 160 pounds + VAT.

sandra_nz

Just some random tips from a long-term tenant here! Obviously you need to do some more research and ensure you are being compliant with all the relevant legislation, but these are some things that have made the difference between a good and bad tenancy for me:

- Do a written and detailed inventory with your tenant and both sign the inventory to agree what is being provided and what condition it is in (use a coding system, e.g. A = brand new, B = slightly used, C = worn, D = very worn). Take photos prior to the tenant moving in and put them in the inventory. I can't stress how important this is - the more work you do upfront to agree the condition of the property, the less headaches you'll have at the end of the tenancy.

- A couple of weeks after the tenant has moved in, give them a call to check everything is OK. This has been done a couple of times for me and I've really appreciated it - sometimes it's an opportunity to ask the 'stupid questions' about how certain appliances work, etc.

- Do regular (quarterly is best I think) inspections of the property, giving the tenant plenty of notice. Ask the tenant if there are any issues they would like to raise at this time. Let the tenant know the outcome of the inspection, e.g. no problems found, potential problems identified, problems requiring action.

- Take quick action when your tenant advises you of a problem. If your boiler broke down, would you wait a few days before getting someone in to fix it?

- When your tenant leaves, be reasonable around what is natural 'wear and tear' on the house. Think about what wear and tear your own house experiences over one or two years, and apply the same standards to your tenant. The bond is for wilful damage to a property, not for the natural wear and tear.

Hope that helps!

Fusewire_2

You do not need a full HIPs pack, just the EPC (Energy Performance Certificate) which is done by a DEA (Domestic Energy Assessor). A letting agent could help you with this as they will know one, don't pay more than £50-£75 though.

10% is usually the norm for management fees, and finders fees range from half to a full months rent. But in my view most letting agents do nothing to earn this money. If there's a problem - they will call you, if the tenant doesn't pay the rent - they will call you, if you have to evict a tenant for non payment of rent - they will call you (and then leave you to sort this out yourself anyway) - do you see a pattern emerging here? In other words they are just middle men who relay calls from tenants onto you, big deal. If you only have one property to manage you would save yourself money by looking after it yourself, there is plenty of info on being a landlord. Don't be afraid to do it yourself as letting agents will make out its a minefield and 10 times worse than it actually is.

Join a Landlords Assosiation as they are a wealth of information, expect to pay about £100 but its worth it. NLA is the biggest I think.

Check with a mortgage broker on how much you can remortgage up to at the moment, the BTL sector has really tightened up on lending. Most will only go up to 75% loan to value now, previously 85-90% was easy to get.

As someone has mentioned you need a Landlords Gas Safety Certificate, done by a CORGI registered plumber once a year. Should be about £60-£80 a time + any work that needs doing.

Don't forget buildings insurance, this should be around £1-£1.20 per thousand insured. So if you're insuring £120,000 expect to pay £120 a year.

You need the tenants deposit to be registered on the TDS scheme as someone already mentioned, otherwise they could get 3 times their deposit back from you. There are free schemes available.

Hope this helps,
Graham