Renting my flat out...

mark_steps

Ok so since im in dire straits been to my mortgage company and enquired about renting my property out. Got the go ahead so now im looking into my options. I can use a letting agent who can get someone in, look after the property and take the rent (all for a fee ofcourse) or do it the hard way and do it myself. Personally i wanna do it the easy way and that is have a letting agent deal with it. Guess im just looking for opinions or stories to sway me or keep me wanting the letting agent....

BitterAndTwisted

One of the things that an agent might be able to do that you can't is the credit-referencing process. You'll be up !!!!!!-creek without a paddle if you enter into an agreement with a professional tenant who never pays you a penny in rent.

Please be warned that letting your property is not necessarily a panacea to being in dire circumstances. All you would need is one of those professional tenants mentioned above and your situation could be so much worse than it is now.

SteveB81_2

I did notice some packs for this in WH Smiths a while ago. Perhaps check their website?

Yorkie1

SteveB81 wrote: »

I did notice some packs for this in WH Smiths a while ago. Perhaps check their website?

If you haven't ever investigated being a LL before (and I'm guessing the OP hasn't, from their original post) then this is a quick way to getting things very wrong.

Get Tessa Shepperton's book on being a LL from the library or Amazon. Look on LandlordZone forums for ideas as to what can go wrong, and steps you might be able to take to mitigate the risk. Using an off-the-shelf template tenancy is probably one way of increasing the risk.

If you're in a flat, you're likely to have a lease rather than freehold. You'll need to check your lease doesn't prohibit subletting, as sometimes they do. If it is permitted, you'll also need to ensure that any clauses in the lease are reflected in the tenancy you grant.

You'll need a gas safety certificate, EPC, landlord's insurance. Be aware of the rules relating to deposits.

Join a landlord's association.


I doubt WHS would advise you of all of this.

Personally, I'd use an agent - one who was a member of ARLA, but the above gives you some basic ideas to start with.

G_M

Whether you go the letting agent route or DIY, read this:

Courtesy of tbs624 (edited):
“
Sign up to LandlordLaw or to the NLA/RLA or a local affiliated LL association. Membership fees are tax deductible, and membership will get you discounts on some LL insurance premiums. See if your local Council runs an accreditation scheme for private LLs. Any of these will give you access to much useful info plus appropriately worded documents and notices.

Make sure that your tenancy terms don't fall foul of OFT guidelines - google "unfair contract terms" and "tenancy"

Try Alan Boswell for insurance: others on here have suggested Endsleigh, or use google or RLA recommendations. Compare risks coverered as well as premiums.

Read up on your own and your potential T's rights and obligations. Make sure you understand how to deal with tenancy deposits. Have a look at Shelter's excellent website.

Have you obtained Consent to Let from your mortgage Lender?

Have you an EPC to wave at your potential T? And a gas safety certificate?

Have you got a tame plumber/gen repairs bod for when things go wrong?

Gather together a folder of instructions for GCH system and any appliances provided, how to work alarm, what days rubbish/recyclables are collected, emergency contact no.s for repairs etc. Note down the exact colour/brand of emulsion so that T can do minor touching up of any marks. Note who the current utility suppliers are and ask the T to let you know if they switch for a better deal so that you know who to contact when the tenancy ends.

Protect yourself by doing a proper inventory which describes the property and F&F in full detail. Include photos. Google "inventory clerk" and pull up some examples of how to do this.

Properly vet your potential T - you can use a third party referencing agency for between 15 and 50 quid. It can be worth seeking refs from the LL before their current one, who may be simply keen to get rid from their own property.

Remember that although it may once have been your home, you will be handing over "exclusive occupancy" of the property to the T in return for that rent and they are entitled to view it as *their* home, without undue interference from you as the owner.

Be businesslike but fair, and your T is likely to respond in kind, looking after your property and keeping those expensive voids at bay.. "

RLA

NLA

Landlordzone

Landlord Law

The Complete Guide to Residential Letting

HMRC

Deposits

Shelter England

Tenant referencing

gamez-over

If you have to time to show people the property yourself, it may be an idea for you to use an online agency such as Upad or House Network, that way you can save yourself a fair bit.

With regards to the referencing process, the tenants would have to pay for this and depending on who you use it could be anything upto £54 per person. Personally I would charge around £50 per person and use Letsure who charge around £13 + VAT, that way you make a bit of pocket money on top.

I hope that helps.

tbs624

gamez-over wrote: »

With regards to the referencing process, the tenants would have to pay for this and depending on who you use it could be anything upto £54 per person. Personally I would charge around £50 per person and use Letsure who charge around £13 + VAT, that way you make a bit of pocket money on top.

What a "nice" fat profit....

Many LLs do of course simply charge at cost.

G_M

tbs624 wrote: »

What a "nice" fat profit....

Many LLs do of course simply charge at cost.

And some refund the cost out of the 1st month's rent where a tenancy is succesfully created.

:beer:

The cost to the LL is minimal and it makes for a good start to the tenant/LL relationship.

Of course if an applicant fails the credit check, or withdraws their application, then the LL has covered their costs.