Calling all Landlords!

kingshir

Are there many landlords reading these boards?

Is it worth it or does the hassle outweigh the advantages?

An EA has been telling me horror stories today and as a very new landlord, I am now very, very nervous about the whole renting out thing!! :eek:

Dumbledore55

Hi Kingshir - I'm doing it because my circumstances forced me into renting out my home and buying a new one. I use a letting agency but personally they aren't waht I expected when the last tenants moved ou they inspected the property and said it was fine so could they give the bond back. I went round, the carpet was stained black and sticky, they hadn't weeded the garden the whole time they were there and it didn't look like they'd cleaned the toilet during that time either...........don't ask for more details!!

I then had it empty 3 months but still had 2 mortgages to pay and twice prospective tenants dropped out at the last minute adding to my stress levels.

Every time a new tenenat moves in they seem to find a long list of things 'wrong' with the property and they don't seem to understand the conditions of the tenancy - no pets and no smokers!

Perhaps its just that I've stretched myself and have 2 mortgages but I wouldn't do it again. My daughter got married recently and they want to buy my house so I'm only renting it out now until she sells hers. I just want a peaceful life and the equity out the property.

On the other hand I know a lot of people that do rent property and don't find it a problem - its just not for me!

kingshir

Ooer Dumbledore55, it sounds terrible! :eek:
The property belongs to my son (he's in the forces and will live in it once he comes out) but I'll be looking after it meanwhile. I was just going to get the EA to find me a tenant and do all the credit checks and I would do the rest, so maybe the bad stories were to encourage me to have to 'full managment' bit at £100 + 15% + VAT every month!
I suppose I was really wondering if the majority of tenants are as bad as the EA made them sound? I rented when I was a teenager/student and wasn't that bad (I don't think ) and always got my deposit back.
Thanks for answering - I still feel a bit wobbley about it all

Dumbledore55

I've only had two sets of tenants - so I'm not an expert - the first were Ok apart from finding a long list of faults when they moved in, but after about 6 months they told the letting agent they didn't think they could afford the resnt anymore due to Children's Tax Credit problems - I asked the letting agent why they were telling me and they said - 'I don't know'. when I asked what would happen if they stopped paying the rent basically, it would cost me a fortune to get them out but only once they were well in arrears with the rent.

Anyway, 3 months later they moved out fully paid up with the rent but left the house in a bit of a mess - see above - oh and I could smell that they had been smoking in the house.

Then 2 mini disasters with prospective tenants with CCJ problems - I suppose that is a bonus with the letting agent cos at least they discovered the problems before it was too late.

New tenants only been in a couple of weeks - long list of faults they want repairing...deja vue? Asked if they can have a cat - clearly stated 'no pets' in the advert, they are Polish and apparently they've upset my neighbours by putting up a giant TV dish to get Polish TV.

I'll be glad not to rent anymore but it did keep my head above water during a difficult time.

I have a friend who rents out properties for a living and he always rents to elderly tenants and never uses a letting agent.

Old_No.7

Hi there, I have a property where i was a live-in landlady to start with. We rent out 3 rooms in it, mainly to people who've just started working/starting out in London (it's a cheap and cheerful place, nothing fancy). Thought cheaper end of the market was going to be more challenging than catering for people who can afford more, but so far I get the impression it's the other way round!

I've moved out 6 months ago, and wasn't sure what to expect, but it's been a doddle so far. We've had many tenants come and go, but they've all be lovely, and very good (I suspect I am due a bad tenant some time soon, but so far they've all been great). Of the 3 years that we've rented rooms in the house we only ever had 1 week where 1 room was empty: all others were taken the same day someone moved out. We don't make much money on it yet but enough to keep it interesting. If you're just looking for a short term thing to cover the mortgage or a bit on top of that, I'd just do it yourself (if feasible): no estate agent involved, that's what we do. Lots of internet sites you can advertise on for free.

I live about an hours travel away now from the property, and have taken out insurance for electricity and plumbing emergencies: that way I can get people to the property to sort out problems within 2 hours without too much risk. Costs about £3 a month, and I've used it twice already: so has paid for itself so far.

Stay away from EA I would say: they are hardly ever worth their money for lettings, for the landlord nor the tenants, unfortunately.

inmypocketnottheirs

Old_No.7 wrote:

I live about an hours travel away now from the property, and have taken out insurance for electricity and plumbing emergencies: that way I can get people to the property to sort out problems within 2 hours without too much risk. Costs about £3 a month, and I've used it twice already: so has paid for itself so far.

Would you please inform a fellow Jack Daniels admirer which company you use for this?

Many thanks

Phil

Jo_anne_2

kingshir wrote:

Ooer Dumbledore55, it sounds terrible! :eek:
The property belongs to my son (he's in the forces and will live in it once he comes out) but I'll be looking after it meanwhile. I was just going to get the EA to find me a tenant and do all the credit checks and I would do the rest, so maybe the bad stories were to encourage me to have to 'full managment' bit at £100 + 15% + VAT every month!
I suppose I was really wondering if the majority of tenants are as bad as the EA made them sound? I rented when I was a teenager/student and wasn't that bad (I don't think ) and always got my deposit back.
Thanks for answering - I still feel a bit wobbley about it all

If you are going to use an agent, shop around for quotes as £100 + 15% + VAT every month sounds a bit steep, to say the least. The agent I use charges 10% of the rent per month and this includes VAT. Is the £100 a flat rate or a % of the rent?

kingshir

Jo_anne wrote:

If you are going to use an agent, shop around for quotes as £100 + 15% + VAT every month sounds a bit steep, to say the least. The agent I use charges 10% of the rent per month and this includes VAT. Is the £100 a flat rate or a % of the rent?

Sorry, I didn't make it very clear. It is a £100 set up fee and then 15% of the rent each month (+ vat) I think I've got that right (was reeling after the stories

I bought myself a 'Renting Out for Dummys' book (cheap of Amazon natch ) and after reading it I thought I could manage it myself and would, if I'm honest still prefer to do so myself (would like to save son's money if possible).

Btw, in case anyone is interested, the horror stories included - rented property being used as a brothel :eek: :eek:

lush_walrus

Its a bit of a lottery really, I would advice you if you do rent it out to just follow your natural instincts. If someone appears to be picky, they will be picky and on the phone about this that and the other all day wanting all types. If someone appears to be nice enough, but you havent met their bf or whoever then make sure you do, many a time I have come across a really nice girl only for her then to move in her very not nice bf whos past time is beating her or the property to a pulp!

If someone has 3 children they are going to cram into a 2 bedroom house, then dont let them, especially if it is nicely decorated. Little children will paint on the walls and the parent will not be able to stop them.

Common sense really. I would make sure that you meet them yourself and have a proper think about what type of people they are. References are worthless, anyone can make up their past and get friends to write the references. Also EAs references may well be good, but they could also be to get a tennant out of one of their properties, so bare that in mind as like it or not if you get a bad tennant they can happily sit in your property not paying you rent until you get a long drawn out eviction notice.

Personally, I would manage it myself (even though I am an EA), no one on earth will care about your property like you will and EAs do not have any more legal powers than you do should things turn nasty with your tennant.

Personally, I would say consider trying it, charge less than others and you will keep any good tennant there for maximum amount of time, vet all potential tennants yourself and think very clearly about them. If it takes 4 months to find the right person wait, do not accept someone who you have doubts about, jsut to get someone in there.

Tennants, as with everyone are good and bad, just make sure if you do rent it that you find the good.

sm9ai

Dumbledore55 wrote:

the first were Ok apart from finding a long list of faults when they moved in

Not really the fault of the tennants though.

I'm in the reverse situation. Being a tennant I get annoyed at the landlord for not fixing anything.

Generally as a tennant I will always leave a property in a better condition than when I find it. But speaking to other people, if its in good condition it will stay that way. Bad condition and it will get worse.

Old_No.7

To Phil/inmypocketsnottheirs (great motto!), the company I use is related to Thames Water - Homeserve. There is a maximum that you can claim (2x a year i believe inside the house), but for £30 a year or so, you can easily cover the costs. I'd pay that just for the peace of mind, really. They came in to deal with a blockage in the drains: called them at 9pm and said it had to be done that night (was leaking into our flat and the shop below), and sure enough 30 minutes later a good pumbler arrived. Same for when storage heater failed: sorted in no time for no cost, just a signature when they leave.