I want to rent a house I just put an offer on

nomorekids

Hi,
I know its a risk but houses around reading seem to be going up, (the asking prices anyway). I have taken the plunge and put in an offer on a 3 bed house that I intend to rent out. The money is coming from my and my husbands existing mortgage which is a flexible one and we are lucky to have lots of equity in our home.

So given the house sale will go through the house will be in my name only as I am the basic tax payer and I am now asking for advice about renting.
The house will need painting throughout but we are buying the appliances.

Any advice re agents, tenancy agreements, finding tenants and especially the law would be most appreciated.

PasturesNew

120 basic laws and regulations to get your head around for starters.... how many do you know already? Give us a clue where to start.

theartfullodger

So, nomorekids, you've decided to go into a business where you don't understand agents, tenants, tenancy agreements & the law.

Sigh!


Cheers & best wishes to all!

Lodger

chickmug

theartfullodger wrote: »

So, nomorekids, you've decided to go into a business where you don't understand agents, tenants, tenancy agreements & the law.

You have to start somewhere

penguine

Are you sure there's a need for rental properties in your area?

A lot of people who can't sell their homes have been renting them out instead. Some letting agents aren't taking any more on their books because they have an oversupply already.

Before risking your home on what might not be a great investment, I think you should do a lot more research.

PS: we're in a very severe recession (in case you hadn't noticed) so the chances of house prices not falling further is vanishingly small.

theartfullodger

chickmug wrote: »

You have to start somewhere

Well, yes, but at the bottom of a hole you dug yourself with no steps to get out??

Mind you it's what I did: Bit painful what with the 5 ex-tenants I am still recovering monies from through various court actions. Wish I'd taken my advice from now when I started in 2000..

Cheers & Best wishes to all my readers, including those who don't agree with me!

Lodger

Geenie

OP, check out a free site like Landlord Zone and read up on what your obligations are and those of your tenants before doing anything else. You need to know all of the rules and regulations. Not only so that you are doing things right, but also to make sure that any LA is doing so if using one.

Don't try to cut corners, it is never worth it. As already stated, check areas and see where there is good rental demand. If there is good demand, you have more choice of tenants and will not have to take the the first or only applicant that comes along. Research and knowledge is the key. Spend time on this, sums and worse case scenario before buying is my advice.

nomorekids

thanks for the comments guys, I am going ahead with the house, the rent will definately exceed the mortgage as the mortgage will be relatively cheap given that we are only maxing out our current mortgage and not going for a buy to let.

has anyone got a link to some blow by blow check list on the certificates needed, ways to minimum the tax liability and a decent letting agent.

franklee

nomorekids wrote: »

thanks for the comments guys, I am going ahead with the house, the rent will definately exceed the mortgage as the mortgage will be relatively cheap given that we are only maxing out our current mortgage and not going for a buy to let..

OK chuck the figures up. What's the purchase price, expected rent per month, mortgage rate and how long is that fixed for, type of mortgage repayment or interest only, amount of deposit put down to buy the property and amount borrowed to buy this property?

Gwhiz

One thing you do need to check is whether your mortgage company will let you rent the property. Some will insist on a BTL mortgage!

rumncoke

nomorekids wrote: »

Hi,
I know its a risk but houses around reading seem to be going up,
The house will need painting throughout but we are buying the appliances.

Any advice re agents, tenancy agreements, finding tenants and especially the law would be most appreciated.

Can't really help re legal stuff but just wanted to share my experience. We rented our old house out last year due to sale falling through. All done through LA. First 6 months great no problems. Now we are owed a months rent (suppose to be getting it this week) They are moving out mid May, their decision, although we were about to serve notice anyway as we want to sell. Garden is a tip, hasn't been touched since they moved in, she has turned really nasty & I am now panicing about what state it will be in. I don't think they will be bothering to clean etc given her current attitude.

I have already spoken to LA about disputing some of the bond due to the garden, how much obviously depends on state of the rest of the house.

Please think very carefully before going ahead. We thought they seemed really nice but it is now turning into a nightmare. It is our first experience as LL & it is our last, couldn't go through it again.