Renting my flat out.....

sc0ttd83

Hi everyone i currently have my 1 bed maissonette up for sale as my fiance and I really need somewhere bigger as we want to start a family of our own!

If worse comes to the worse and the flat doesnt sell im thinking about renting it out and acually renting somewhere a bit bigger.

I would do this through an agent and was just wondering if anyone could advise me on the costs involved in doing this?

Its a 1 bed maissonette which I think would bring in about £420 PCM in rent.

Any info will be very welcome!

Thankyou

hells_2

Firstly - you will need your lender's permission to let the property - in writing.
Secondly, do some research on Rightmove for local properties for let, and tick the 'let agreed' box as well, they tend to stay on for a couple of weeks afterwards, this will give you a good gauge of what is being let and at what price.
Talk to your local letting agents, get a feel for what their books are like, what kind of tenants they have waiting for property.
And importantly make sure you have the following things done:
1. Gas Safety Check
2. Electrical Safety Check
3. Energy Performance Certificate
(you can't let until you have 1 and 3 done - 2 isn't 'law' as such but is a good idea. Some firms will do all of these at once for a single fee)

The agents will charge you a 'finders fee' which you should only pay once the property is let - usually taken out of the first month's rent.
Management fees are usually 10-12% + VAT of the monthly rent also.
And check every detail of the agency agreement they give you to sign - it could be a sole agency which means you can only advertise with them.
Also hassle them like mad to find you a tenant which means your property is not left vacant, if you choose to move out beforehand.

Good luck!

theartfullodger

ONLY rent your property out if you can cope with the financial & emotional agrro of the "Tenant from hell" who you can't get out for 9 months whilst you keep paying the mortgage etc./ etc... and legal fees (to get him out) and then he 'phones you Saturday 10:22 pm "Toilet's bust wodja gonna do..." "Sorry to hear that dear sir, when did this start" "Wodja goona do... wodja gonna do - dunno 3-4 weeks maybe,.,.. wossat gorra do 'wiv it??" "OK, I'll get my man to call you Monday 1st thing..." "Nah, you gorra fix it nah..>""""


(PS Yes, you have a legal requirement to fix the gentleman's toilet, notwithstanding his not having paid you for 7 months,.....")

If you are not sure you can cope, find another business to go into...

And remember that your current lender may up the interest rate/charge fees as you will be letting..

& there are many other costs incurred when renting: And do your numbers only assuming you can rent for 10 or each 12 months....

Cheers!

Lodger

(Apologies to other readers for posting this advice yet again...)

mlz1413

To avoid a lot of what Lodger say you could rent via a guarnteed rental scheme as then the agent takes the property on and pays you direct - you will be liable for repairs and other costs so as with any contract READ BEFORE YOU SIGN and get answers to questions / clarification in writing.

IMO I'd stick it out, a maissonette is fine for small babies so if you are not pregnant yet that gives you over a year before you actually need somewhere bigger, I realise you may want something bigger.

Remember if you rent yours out any profit is taxable and the rent you are paying out is not an allowable deduction, so ensure you can afford to do this financial.

Have a read of Landlord zone as you can rental insurance for some peace of mind, but being a LL is not simple and can cost time & money if you get it wrong.

BitterAndTwisted

What's a "guaranteed rental scheme" and how would it prevent Artful's worst-case scenario?

mlz1413

The agency take the rental on and therefore guarantee payment of rent as they pay it.

The agency then find tenant and deal with, AFAIA tenant doesn't get LL details as they are not renting from LL, so T can't contact LL direct about leaking toilet.

If T doesn't pay that is the agencies problem not LLs, I admit I don't know about T staying in after contract term which is why I said to read T&C and get written answers to questions.

I would assume being a business the agency would have a lot more clout to get a bad T out if they needed to.

BitterAndTwisted

Most of your post is baloney! Please refrain from misleading potential landlords in this way in future. Oh, and please look up in the dictionary the definition of the word "agent". Thanks

mlz1413

a⋅gent  –noun
1.a person or business authorized to act on another's behalf:


Blurb off one the agents website about GRS:

Who is the tenant?

NAME OF AGENT become your tenant and we assume all of the contractual responsibilities not just the payment of rent. For example should the person residing in the property refuse to vacate the property at the end of their contract or break the terms of the contract causing the need for legal action all costs involved in pursuing them will be met by ourselves.


Above answers the bit I didn't know.

But of course it will still be baloney to you won't it.

BitterAndTwisted

mlz1413 wrote: »

The agency take the rental on and therefore guarantee payment of rent as they pay it. This is the only part of your post which is partially factually correct but the agent cannot guarantee payment of any rents to the landlord not actually received from the tenant/s otherwise they would be taking on a huge liability. I don't know of one which would do so but you might know better

The agency then find tenant and deal with, AFAIA tenant doesn't get LL details as they are not renting from LL, so T can't contact LL direct about leaking toilet. It is an offense in England and Wales for the tenant NOT to have an address for a landlord to serve notices.

If T doesn't pay that is the agencies problem not LLs, I admit I don't know about T staying in after contract term which is why I said to read T&C and get written answers to questions. No, if a tenant does not pay it is the landlord's problem as any rental agreement is between the landlord and the tenant with the agent acting on the landlord's behalf as an intermediary only. Which is why I suggested you look up the definition of the word "agent". You appear to have done so but do not appear to have actually understood it.

I would assume being a business the agency would have a lot more clout to get a bad T out if they needed to. If you actually believe this then I would be tempted to assume that you would believe almost anything. It is not unknown for lettings agents to be woefully ignorant of LL & T Acts and might have less experience in dealing with delinquent tenants than I do and I'm not even a landlord!

Like I said, in my opinion your entire post was complete and utter baloney and I would dissuade you in the strongest possible terms from giving any more posters on here such duff information in future.

Thanks.

mlz1413

Bitter & Twisted you seem to have missed the point - Guaranteed Rental Scheme - does what it say in the title. LL gets paid by agency as agent is LL's T. Yes some agents do take that risk.

By business having more clout I meant it as ability rather than force, most businesses have a lot more time and money than the average individual.

I could answer alot more of your remarks but like I said previously you will still think this is baloney.

theartfullodger

The agency take the rental on and therefore guarantee payment of rent as they pay it.

The agency then find tenant and deal with,

Ho ho ho ....

To be an agent you require
- no qualifcations...
- no insurance
- no registration with any industry body...
- no oversight that what you are doing is right,..
- no Criminal records check..


Anyone posting on MSE can be an agent within a coupleof hours, faster if they try,...

The issue with any "Guaranteed Rental Scheme" or similar is when you come to claim are you insured & guaranteed against you (the Landlord) or the agent (ohh errr....) having made an error or not fully taken up references....

Guess what, the (insurance) companies do all they can to wriggle out of paying up.. and when you go to the agent - he says "Oh, sorry, tough", or he's gorn...
e.g.
http://www.landlordzone.co.uk/forums/showthread.php?t=11447
&
http://www.lancashiretelegraph.co.uk/news/rossendale/crawshawbooth/3685592.Warning_over_struck_off_Rossendale_estate_agent/

Cheers!

Lodger