How do I rent out my property

englishdesi

HI All,

I would like to rent out my flat and have consent to let from the lender. I just wanted the benefit of all your wisdom on the best way to do this, do I do it on my own or via a letting agent ?

I have had some estate agents round and they want to charge me 8% introduction fee on finding tenants and 15% on fully managed. Are these rates negotiable ?

Look forward to hearing from you
English Desi

Cardinal-Red

All rates are negotiable - depends very much on the agent you choose and the property.

When we let ours out in June last year, they had 3 viewings in the 1st day (which I handled for them) and 2 offers later that day. I negotiated the fixed fee introduction down by 50% in light of this, and got a fully managed service down from 12% to 10%.

Remember they want your business too.

As for whether to use an agency at all - we moved 300 miles away from the property, and so needed an agent to ensure the management went smoothly. You may not be in this situation.

Word of advice though, get your own engineers to do gas safety checks, PAT tests etc as generally cheaper than through an agent.

Also consider British Gas boiler cover..... saved me a fortune

inmypocketnottheirs

If you are an accidental landlord rather than an intentional one, i.e. renting out your home has been bought about rather by circumstance than a strategic decision, I would advise that you use an agent.

BitterAndTwisted

Join a landlords association right away: the cost can be offset against profits on your income tax bill. Plus educate yourself so you understand all of your legal responsibilities. The Landlordzone forum might be useful to show you what some of the pitfalls are

englishdesi

I guess I am in the minority getting consent to let (and increasing my rate by 1%). Should I have bothered or could I have rented out without telling my lender ?

BitterAndTwisted

A 1% increase on your mortgage is a lot less of a liability than the lender finding out you're letting without permission and foreclosing or insisting you change your mortgage to a buy-to-let one which attracts a much higher rate of interest. Plus your insurance would become invalid. Have you looked into changing your insurance to an appropriate policy? This is one of the things I meant when I mentioned your responsibilities as a landlord.

G_M

Use a reputable agency which belongs to a professional body with a code of conduct.

Make sure you are not contractually locked in, just in case they turn out to be rubbish. negotiate fees.

And learn all about being a LL and your responsibilities: landlordzone, RLA, Guide to residential letting or similar.

Cardinal-Red

englishdesi wrote: »

I guess I am in the minority getting consent to let (and increasing my rate by 1%). Should I have bothered or could I have rented out without telling my lender ?

Probably! But you are in the very right minority as others have suggested!

Out of interest - who is your lender? Mine (C&G) didn't alter my rate at all when I got a consent to let from them (though they did charge me the dreaded administration fee!)

Fire_Fox

englishdesi wrote: »

HI All,

I would like to rent out my flat and have consent to let from the lender. I just wanted the benefit of all your wisdom on the best way to do this, do I do it on my own or via a letting agent ?

I have had some estate agents round and they want to charge me 8% introduction fee on finding tenants and 15% on fully managed. Are these rates negotiable ?

Look forward to hearing from you
English Desi

Have you read your long lease to ensure you do not also need the consent of the freeholder or at least for them to inform the buildings insurance provider?

GarySt_2

Shop around rather than negotiate. These figures are far too high! Letting agents also get a fee from the tanants so will take your property on for next to nothing and they all use the major online sites to advertise. You should be able to get it managed for half what you have been quoted. Dont get tied in to any repeat fees if the tenant stays for another period and watch managing agents that charge the earth and get their mate in when anything needs fixing. If you are new to this try to get agents recommended from people you know as there are a lot of rogues after your money. Read the small print before signing. Much better to let/manage it yourself if you can although I realise this is not always possible for everyone.

GarySt_2

BitterAndTwisted wrote: »

A 1% increase on your mortgage is a lot less of a liability than the lender finding out you're letting without permission and foreclosing or insisting you change your mortgage to a buy-to-let one which attracts a much higher rate of interest. Plus your insurance would become invalid. Have you looked into changing your insurance to an appropriate policy? This is one of the things I meant when I mentioned your responsibilities as a landlord.

As its a flat the structures insurance will be on a block policy and would normally cover letting. Best to check any obligations in the lease to see if there is any insurance requirement to notify freeholder although thats a whole different kettle of fish if any charges apply.