Renting my home, any advice please?

lady_noluck

I'm about to rent my property out as i'm buying a new one to move into and was thinking of using a letting agent. Does anyone have any tips and advice for finding a good one? There are so many where I live I don't know who to choose.
Also, would I be better opting for their whole management package and let them take care of everything even though its more expensive or could I take care of some of it? I've only ever rented a room out before but didn't have any problems as I was living there at the time.

Also do I need an accountant to take care of the tax side of things?

Any help/advice will be greatly appreciated!! :beer:

callmelinda

In terms of finding one, how about trying a selection out for yourself and posing as a renter looking for a property likes yours to rent (or if the type of property you're going to let is more akin to a different generation living there, then ask a relative or friend to represent that market and do a dry run for you). It may sound strange, but if they can impress you they may impress others who go on to let your property. I always think testing people out before placing your trust in them can pay off. Perhaps their locality to the property is worth considering too and trying to gauge the local popularity and marketing skills of the companies.

I can't advise on the other matters but good luck with it!

Viking_Man

Just some anecdotal advice:

My mum has rented out 2 large properties and a small flat. She always managed the properties herself.

My sister rents out a flat and lives a long way away so the agents manage it. They don't really keep it in perfect condition though, and she still has to go down and clean and decorate it from time to time. She said if she didn't live so far away she would manage it herself because the agents don't do enough for the cut that they take on the rent.

I rented a house from a friend of mine 10 years ago and it worked very well - she charged me well below market rates and in return she could come and stay when she needed to. When I left she used an agent to rent it out and got so fed up that she sold after 12 months (and a break-in while the house was void).

I guess eveyone's experiences are different, but I think both tenants and landlords seem to think that letting agents don't deliver good value for money. They're a necessary evil!

franklee

Well you want to attract a good tenant, so speaking as one of those when assessing an agent I look for a fair contract and for reasonable charges made to the tenant.

If the contract is unfair then it will put off the good tenant. A bad tenant won't intend to follow the contract anyway so won't much care what it says. I had to walk away from a great property simply because I couldn't sign the very unfair contract. This wasn't the landlords contract, it was the agents, I'm sure the landlord had no idea what effect it had. I did ask the agent if they would change it but they said no as it was their standard contract.

It's amazing how many landlords don't check the agent's charges to the tenant, some agents have an endless list of charges that can mount up to 300 pounds or more for the first year (referencing, contract fee, inventory fee, renewal fees, check in fee, checkout fee etc.) whereas others only charge about 50 pounds per tenant at the start and nothing else.

Now I could have contacted the landlord directly to see if they'd change what the agent was doing but decided not to as it would seem a bit stalkersh and after all the landlord had chosen that agent. So in the end I reluctantly walked away and the landlord had an empty property over Christmas.

Also these days having a website with available properties on helps, not necessarily rightmove that tends to be the bigger agents, although being on rightmove is fine too. On the whole I prefer smaller local agents to the big chains as it's possible to speak to a boss and get things done.

Tiger_greeneyes

I always make sure I've got landlords insurance - just in case. I don't wish to be alarmist but accidents happen every day of the week, whether a property is tenanted or owner occupied (ie yesterday I demolished the front room curtains when I went to open them, and then I set fire to the toaster - and I'm an owner occupier!!). You can't rely on tenants to buy insurance to cover your carpets or kitchen etc. You need to look after your own interests.

clutton_2

having landlords insurance is a term and condition of your mortgage, and the lender will want proof that you have insurance, and will want the Lenders interests noted on the policy. Any decent landlords policy should include white goods, carpets, curtains, fixtures etc.

huggermugger

Agents offer various levels of packages. Full management means that they find a tenant; draw up the contracts; liaise with them throughout the tenancy; arrange for any repairs to be done; collect the rent from the tenant & pass it to you less their fee, which at that level can be quite high. Some agents also make money by getting a cut from the tradespeople they use/recommend.

I think in the end it depends on how able you think you are to manage the letting yourself. I personally would pay an agent to find a tenant, check them out & draw up the contracts. Agents will often ask for things like copies of bank statements for the last 3 months as proof that the tenant is financially sound and also run credit checks. I think it is fairly difficult as an individual to ask for those things. Rental contracts are fraught with danger on both sides and imho should never be drawn up or entered into without proper professional advice. If you think you would have difficulty getting tough if your tenants were late paying rent then maybe you should go for a rent collection service as well.

Tenants who pay their rent are entitled to expect a good service from their landlord/lady including repairs being carried out fairly quickly. This means having tradespeople you can rely on and also being able to be on hand yourself if necessary.

In general, if you look after your tenants, they will respond to that by looking after your house. Having said that, make sure you take good photos of the house & fittings (carpets, curtains, beds etc). I used to do an inventory as well tho that seems to be falling out of favour a bit. Fair wear & tear is acceptable, damage is not & can be deducted from the deposit at the end of the tenancy.

hth.

plane_boy2000

With my propoerty I have used an agent to find and credit check etc, but then opted to manage myself. This works well for me, and I have a good relationship with the tennant who just calls me direct on the few times there has been a problem - twice in 3 years. I have popped in for a quick property inspection a couple of times, and all has been fine. For me though I am only about 30 mins away so no problem, but if I was some distance away then I would probably use an agent even though I think the costs are a little over the top in some cases. Rate here is about 12% + VAT which to me would be over 1K a year

lady_noluck

Thanks for your help guys!! Still haven't decided what route to take yet but it's given me loads to think about :T :beer:

Romani_Ite_Domum

lady_noluck wrote: »

I'm about to rent my property out as i'm buying a new one to move into and was thinking of using a letting agent. Does anyone have any tips and advice for finding a good one? There are so many where I live I don't know who to choose.
Also, would I be better opting for their whole management package and let them take care of everything even though its more expensive or could I take care of some of it? I've only ever rented a room out before but didn't have any problems as I was living there at the time.

Also do I need an accountant to take care of the tax side of things?

Any help/advice will be greatly appreciated!! :beer:

Just out of interest, are you renting your old one because you couldn't sell it or was it always your intention to Let to Buy?

lady_noluck

I'm renting the old one because we thought it'd be a nice investment for a couple more years then sell it before I get hit for capital gains tax. We could sell but it'd mean it'd stand empty until it sold and we don't want that.