Learning to be a landlord

sonastin

My bf lives 250 miles away, is self-employed and is short on work at the moment. He's giving serious consideration to upping-sticks and coming to live with me instead (which I am more than happy about ).

His house is a bit unusual and he doesn't want to give it up so he would rent it out if he did make the move. Unfortunately he isn't the sort for paperwork or research or that sort of thing so he would definitely fall into the "novice landlord putting blind faith in the letting agency" camp :eek: Having spent a bit of time on this forum, I've come to realise that there is an awful lot more to being a LL than signing up with the LA so I feel like I need to quietly steer him in the right direction (behind every successful man and all that )

So where is the best place to start? He's already spoken to a local LA who have promised all sorts of sunshine and roses (it would let within a week, their credit/reference checks are bullet proof, etc - not sure I entirely believe the sales pitch!). He's unlikely to be persuaded join a LL association but is that something I could do to find out the info to protect him? How do you go about setting things like rent, deposit, etc? We've looked at the ads for rentals in the area and the rent suggested by the LA is about what we expected but what about deposit?

Any advice would be appreciated...

(PS I plan to start another thread seeking advice on moving in together if this is what is going to happen, so can we prioritise protecting the nation from another novice LL on this thread please )

[Deleted User]

First place to start unless he owns the home outright is to see if the bank will give him consent to let before anything else can be done.

Jowo_2

He should join a national landlords association and attend a course and get a book on how to be a landlord, as employing an agent doesn't mean he transfers all the risk and responsibilities onto them. If the agent fails in any area, it is your BF that is held to account, not them - failure to provide a valid gas safety certificate can lead to a 20k fine and imprisonment, failure to protect the deposit if the property is in england and wales can lead to a penalty of x3 the sum of the deposit.

Not wanting to join a LL organisation smacks of a failure to understand the buck stops with him, very head in the sand.

Landlordzone is a good source of information about tenants rights and landlords obligations. This includes a section on how to find a good agent.

http://www.landlordzone.co.uk/agents.htm

theartfullodger

Unfortunately he isn't the sort for paperwork or research or that sort of thing so he would definitely fall into the "novice landlord putting blind faith in the letting agency" camp

(Very probably ) fatal. Either his habits must change or he should find another business.... for his sake as well as the sake of his tenants...

Does he like appearing in court??

LisaPapakis

Good heavens. Clearly being a landlord is a very risky business!

I have been a landlord twice. First time was terrible; second time (now ongoing) is fine.

You can use an agent, they do save you work, but you have to be watching them. Try to get the length of your notice period with the LA down to 1 month, not three. If they pay rent late for two consecutive months, sack them and find another. A lot of LAs are going under now and I've just rescued a potentially nasty situation by acting quickly. Check your bank every month that they've paid on time.

Only have tenants who are in long-term employment, and are professional people. The worst mistake I made (first time) was taking tenants who weren't in employment, but paid 6 months rent in advance. Don't do it.

The tenant's deposit should be lodged with the Deposit Protection Service, have this registered under your boyfs name as the landlord, your agent will do the paperwork. Even if the LA does all this, it is legally the Landlord's responsibility.

Read the management contract carefully, take particular note of how much the LA is allowed to spend on repairs etc without consulting you.

Keep copies of Energy Performance Certificates, Gas Safety Certificates, all this stuff - don't leave it to the LA to keep these without giving you a copy. If they go belly up then you have a devil of a job getting them back, as I am at the moment.

Good luck!

Hammyman

sonastin wrote: »

Having spent a bit of time on this forum, I've come to realise that there is an awful lot more to being a LL than signing up with the LA

I didn't bother with a LA. Sod giving them money for doing next to nothing.

sonastin

theartfullodger wrote: »

(Very probably ) fatal.

Really????????????

Or do you just mean extremely foolish. I don't think many die of being a bad landlord - the rewards just aren't worth it :rotfl:

clutton_2

artful should be called "the-worst-exaggerator-on-MSE"! - bless

mlz1413

Any LA you use should be a member of an association like NLA or RLA.

You could your b/f if its ok for you go on a course and keep tabs on the LA. If he is happy to give away the admin part then you can ensure the paper work is in order.

Ensure you see any references, ask about insurance to protect you against non-paying tenants. Ensure you get the right property insurance not just the one currently in place.