Tenants Have Given Notice

Rachel_B_3

I've been lurking for a while now looking for info and thought it was about time I posted my question.

My boyf and I are reluctant landlords (it's a long story..) of a 2 bed mid terraced property. We have had a couple renting the house for the past 18 months 'fully managed' by a letting agent for 10% + VAT of the rental. Over the 18 months we have been letting the house we have had a few issues with the LAs but have stuck with them because the net rent was just about covering the mortgage payments and we didn't think we should rock the boat. Now that the tenants have given notice we think it's time to change but we're a bit nervous about it so want to get all of our facts straight.

Money is tight (as for most people at the moment) so we want to be as cost effective as possible, but we also want to do it right - we have rented in the past and having a bad landlord is really stressful. I'm not working at the moment so have a bit of time on my hands... How practical is it to find a tenant and go through all the checks etc. without using a LA? Is it likely to be cheaper for us in the long run or is it best just to go with a tenant find service from a LA?

We'd appreciate any advice! TIA,

Rachel

rebsengland

i rent 3 houses out with my fiance, and we have one with an agency and 2 without. 2 bedroomed terraced houses are popular at the moment rental wise. We went with IMS lettings who charge approx £40 including VAT a month(depending on the area you live in) They are ok as a company.

You have the other option of paying a one off fee for the agency to find you a tenant and then you take over the tenancy agreement.

I woud certainly reccomend a LA instead of privately advertising if you don't want to get too much involved with collecting rent etc.

If you do decide to rent out to DSS etc be aware that the council does not give the landlord/lady the rental money but the tenant. (Personally we have no problems with DSS as two of our tenants are on that)

If you do decide to find someone on your own you will need a 6 month short term tenancy agreement to begin with.

You can pick these forms up from W H Smith or a solicitor can draw one up for you.

I hope this helps

adg1

For a first time landlord I would use an agency to do the hard bit - advertising, viewing, contracts etc -

BUT

- remember that you don't have to use a lettings agent's 'fully managed' service. Most will do a tenant finder service, which will include the referencing and other checks for far less money per month, hence you will net more. Looking after the rental is not too hard - just make sure problems are sorted quickly and you will have a happy tenant.

So, in short, employ them to find a tenant and reference them only then take over the managing side.

Gwhiz

There are a lot of LA's doing offers as well. Seen quite a few at 8% fully serviced so shop around.

mlz1413

If you have time and are prepared to meet people face to face, go through credit ref info, check id, get deposits, inventory, rental agreements etc then join a LL association to prepare yourself and give it a try.

You an also put the house with a agency as a find only rather than fully managed.

The other option is to use a guaranteed income scheme which means a lower set value per month for (normally) a years rental regardless of if its occupied or not - check with the scheme who pays the bills if it is empty for a period of time.

Rachel_B_3

Thanks everyone for your advice,

Funnily enough our current letting agent is IMS and we have been pretty disappointed with them. Maybe we were a little naive originally as to what 'fully managed' meant but with this in mind we still don't think their service has been up to scratch.

I've been doing a bit more research and have found a few local letting agents who charge less for a fully managed service - I found 1 at 8% with no VAT! I've found anything from a full month's rent to £250 for tenant find services only - it's a minefield!

I'm very confused now about what to do... I suppose the bottom line is to try and not lose any money on it as when I did the last tax return the loss was shocking - I felt a bit sick after working it all out :eek: If only selling it was an option.....