Advice Needed for 1st Time Landlord

tom.andrews_2

I'm renting out my flat, and am hoping for a recommendation of a managing agent and confirmation that some of my ideas are correct.

I currently have a lodger living in my spare room who pays me monthly but we have no contract, he's been reliable and as I am moving out I am looking to rent the other room and put a more formal agreement in place as I am not going to be in the flat.

As I already have one person for one room and only need to rent my room out I believe I'll be able to find somebody myself by advertising on appropriate flatshare websites.

Once I have found a second tennant though I would prefer to have an agent managing the property, however the figure I've been quoted by a local letting agent was 12.5% to manage the property and no discount if I already have 2 tenants and do not need them to advertise and fill the property.

Does anyone know a company which would manage the property for a reasonable rate if I provide the two tenants and simply need them to provide contracts and collect ernt, I would expect a reasonable rate to be around 5% for this service.

Are my thoughts correct, and does anyone have a recommendation. I'm based in Kent if that helps for a local recommendation.

N79

First piece of advice: learn to spell tenant.

Second: when you move out your lodger will become a tenant so you need to prepare a contract etc for them in advance. If they won't sign then evict them before you leave - this will simplify so many problems at a later date.

You will pay around 10% for a tenancy management service. Much less would indicate a poor agent. Much more than 12% and you are being taken advantage of. There are slight differences between different areas, the more urban the area the lower agents rates, on average.

clutton_2

""reasonable rate to be around 5% for this service"" are you having a laugh ???

you clearly have no idea what you are doing and yet you want to become a " proper landllord " on the cheap

join nationala landlords association and learn how to be a landlord and then emply an agent to do it ALL for you

how many of the 70+ Acts of Parliament that a LL has to abide by do you know any thing about ????

BitterAndTwisted

Once you have permission from your lender and you have two tenants signed up to separate tenancy agreements and their deposits lodged with one of the deposit protection schemes all you will be paying an agent for is to collect the rent on your behalf and take their fees out of it before paying it over to you every month. That's not necessarily what I would call good value and some agents don't appear to know anything about the law or the Landlord and Tenant Acts either

Any maintenance or repair issues they can deal with but they should contact you for your approval before they engage anyone to carry them out on your behalf. Some of these contactors may not offer the best-quality work or prices. I've heard of agents who charge the landlord one price but actually pay the contractor another, lesser amount therefore making a mark-up on your repairs.

Joint a landlord's association so you can get free advice and assistance should anything go wrong.

Log onto the landlordzone forum and garner information from there before you go ahead so you are aware of your legal responsibilities because there are many.

clutton_2

""you have two tenants signed up to separate tenancy agreements"" why would you want to do that ???

i always put folks on the same tenancy agreement - if one moves - the other is liable for all the rent and it sure does focus their mind on how they are going to get another tenant in more quickly

BitterAndTwisted

Eh, I just thought that once the lodger becomes a tenant they might not want to be associated with some new person the OP squeezes in there. I wouldn't want to be responsible for some stranger's share of the rent.

G_M

Compare local agents on price AND service. Ask for references from their other LLs! Check they are members of a reputable body (eg ARLA) or (NAEA). or google for a local association.

Read up on your obligations as a LL. Having a tenant is MUCH more involved than having a lodger. See Shelter here
Or Landlordzone here
Or get a good book on renting from the library.
Or join a LL associatiuon like RLA here. Or NLA here.

Most agents offer tenant find service including contracts/inventories etc and/or management services (rent, maintenance, inspections etc).
Negotiating a maintenance arrangement + contract (inventory?) is possible but they'll charge.
If you really want to DIY the tenant-find, then find your own reputable Contract (available form sites above or elswhere) but MAKE SURE you research first and know what you're doing.

btw if you find your own tenant are you going to vet them? Check ID? Check references? Check credit history? All this is included in agents tenant find service. Of course you can choose not to do it (your risk) or to DIY - if you know how!

ps -I agree with all the comments in posts above.

G_M

BitterAndTwisted wrote: »

Eh, I just thought that once the lodger becomes a tenant they might not want to be associated with some new person the OP squeezes in there. I wouldn't want to be responsible for some stranger's share of the rent.

When you move out the existing lodger's whole relationship with you changes. He has far more rights.... and more reponsibilities. eg I assume he will take over responsibility for council tax, gas etc etc...

You need to discuss this with him. If he agrees, fine - do a joint tenancy agreement as Clutton suggests. If he's not happy and wants to remain a lodger, then evict him and start from scratch.