1st Time Landlord!

startingtosave

Hello All,

I'm looking for some of your advice and opinions!

I have a house which I've owned for 2 years now and that I've renovated substantially during that time however I hope to move soon and am thinking about renting out my house.

I'm not in negative equity (had a revaluation after works were completed) but I put a substantial amount of money into the upgrades that I wouldn't get back if I was to sell now so I think that renting the house out for a couple of years is going to be my best option.

I already have consent to let from Nationwide arranged (got that sorted just before they introduce the increase in interest rates thank goodness!) and they have also sorted out my insurance for me but as of yet haven't spoken to a management company/estate agent and was wondering if anyone here can pre-warn me about typical charges for this service so I have something to compare to and also what i'm likely to have to do before the property can be rented i.e. is a HIP still required?

One more thing! I'm unsure whether to offer the house furnished or unfurnished - is there generally much of a rent increase if furniture is provided?

Many Thanks for your help!

nc35

Same here - first time landlord.

There is a really good book from Amazon that I do recommend. It is the only one with 5 stars (can't remember the name sorry, but let me know if you need it).

Charges vary - introduction can be £100 ish to first month or 6weeks rent. Dependant upon what you want them to do (credit checks, references etc)
Managed is 10-20% of the rental

Furnished or unfurnished is up to you. Most expect white goods, some a bed too. Other tenants have all their own furnishings and expect you to put yours in storage. Rentals increase with how much you have put in.

Do your research and have a look at other rental properties in your area as a prospective tenant. Bit of mystery shopping.

Good luck

Yorkie1

In my experience there's not much difference between furnished and unfurnished rental charges.

Can't answer about likely agency charges.

You will need a Gas Safety Certificate. Not sure about an energy performance certificate.

Common advice on here is to join one of the landlords' associations as their advice and assistance will be invaluable. And the fees are tax-deductible.

startingtosave

Thanks guys - great advice to get me started! Love the mystery shopping idea, makes so much sense yet for some reason I never even thought of it!! Also will definately look into the landlord associations.

abc1989

You will need an EPC if you havent already got one!

I know a few decent companys that provide EPCs

sonastin

From reading this forum I've discovered there is a whole lot more to being a landlord than I realised. You need to do plenty of research before you start to make sure you know what you're letting yourself in for. Landlordzone is a website that gets quoted a lot on here.

We have a vague plan that one day my OH and I will be renting out one or other of our houses but I know we have a lot of work to do before we take the plunge...

G_M

The are literally 100s of regulations governing letting of properties. If you are going down this route, you must learn what's what. Read Tessa Shepperson's book, look at Shelter's website, and Landlordzone, join a landlords association, learn what is involved.

A few bits of advice from this site like 'you need proper landlord's insurance' is just scratching the surface.

When selecting an agent check what charges they make on tenants as well as on you, and use one who's a member of a professional body (eg ARLA).

monkeys_bunny

so im first time land lord too, been trying to sell but have given up and friends wish to rent so im going for it.

i have just got off the phone to Nationwide and they are sending me a Permission to Let form in the post, i have to fill this in and return it, this will cost me £50. Also if i rent for more than 6months (which i will) then my interest rate will go up after this time by 1.5% and i require (they recommend it) Landlords insurance, just about to search for that now.

im getting gas safety and electrical safety checks done

is that it?
what do people normally do about Council tax bills and elec gas etc?

clutton_2

ANY one starting to let should join national landlords association and spend weeks reading their website.. joining fee = tax deductible.. they also have a free legal helpline to answer ANY questions you have - also they have all the paperwork you will need.. (that will take you a week to read) - you get discounts on your LL insurances and discounts at lots of other suppliers....

its invaluable to new landlords ...

monkeys_bunny

clutton wrote: »

ANY one starting to let should join national landlords association and spend weeks reading their website.. joining fee = tax deductible.. they also have a free legal helpline to answer ANY questions you have - also they have all the paperwork you will need.. (that will take you a week to read) - you get discounts on your LL insurances and discounts at lots of other suppliers....

its invaluable to new landlords ...

i know i am a little blind in these things, but why? surely for someone who just has the one house and is renting it out it cant be that complicated? can it?

tbs624

See also Tessa Shepperson's Landlordlaw, the RLA and the Guild of Residential LLs and/or local affiliated LL associations

One of the deposit schemes has a "guide for virgin LLs"

Local Councils often run training course for newbie LLs and/or accreditation schemes

CTax and utility bills are usually dealt with by tenants - you need to specific this in your tenancy agreement. Don't try to restrict your Ts choice of supplier as this may be held to be an unfair contract term

Check out the tenancy deposit schemes (TDS, mydeposits, DPS) so that you understand how they work and read up on the value of a good inventory at the start of the rental.

Remember that property letting is a *people* business and also that you will be giving the T *exclusive occupancy* of the property: it can be hard to come to terms with this if it has been your own home.