Soon to be landlord.

bee78

Hello everyone,

I have put my house for rental. It is 4 bedroom detached house with a good size garden and driveway for two cars and integral garage. The agent is marketing it it for £925. It is been on the market for 3 days now.

We are moving out in the first week of July. To keep with mortgage payments we do need to rent this current place. I am worried it may not let. The area is good area with similar size properties with some apartments in the back end of estate. Good access to railway stations and good schools. But it is only small thriving village in lancashire.

What else could I do to market this property. I am a bit panicky, even though it has been only 3 days since the property went on the market. I am afraid I can't post the link, but it is in a village of
burscough, if anyone wants to have a look in rightmove, pls don't post link here. Any advice would be appreciated.

googler

You've told your mort lender you're letting it out....?

Read up on all your legal obligations and requirements as a landlord?

Werdnal

Looks a lovely place!

However, I appreciate it is difficult as you are still living there, but if you are letting unfurnished, it would have presented so much better in the photos if you had cleared to clutter from some of the rooms - not the furniture itself, but the kitchen worktops for instance, look like a bomb site - sorry you asked for advice, warts and all!

Are you also aware of all the requirements of letting ... declaring you income for tax, consent to let from your mortgage, LL insurance etc? You may be letting through an agent, but it is always good to ensure you have complied with all your legal obligations too. Read this:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

to understand what you are getting into!

tbs624

Are you renting it out because you want to get into property letting as a long term plan or simply because you cannot find a buyer?

Either way, have you fully researched what being a LL involves? Even if you use an LA you need to understand your own obligations and those of your Ts.

Anyone can set up in business as an LA - no qualifications, no training, no vetting, no regulation.

Search through G_M's posts for his monumental (regularly updated) guide for newbie LLs. (Edited to add: crosss posted with werdnal - who gives the link )

You may also find it helpful to look at Landlord Law, the national LL associations and Shelter's webpages. ( Membership of LL Law/NLA/RLA etc can be set down on your tax return as a bonafide expense and may give you discounts on LL insurances.)

As a starter, have you sought and obtained your Lender's Consent to Let?

solventblackbird

Is the panic to do with cash flow? If you can't afford to pay the mortgage on the property without the rental income, then you're going to get into trouble sooner or later. You need a buffer of cash in case a tenant doesn't pay, in case there are void periods, for when repairs need doing. If the situation is balanced so precariously that you're already panicking, you're going to get into hot water very quickly.

Even if a prospective tenant views the house today, it may be another month or six weeks before they move in. They'll need to give notice at their current place, perhaps - and the checks and references can take a couple of weeks.

Also - if I was a prospective renter and I saw photographs that led me to believe the house was currently occupied, I wouldn't bother looking into it further. I signed a contract on a house once and then the current tenants refused to move out. It was hideous. I know that isn't your situation, but the fact that the house is and looks occupied could put some prospective tenants off.

And yes - you need to make sure that you have consent to let from your lender. Many tenants are getting savier about this and require proof that this has been obtained before signing a contract. It is something I asked to be confirmed to me, in writing, when I moved into my current place.

bee78

Thanks for the feedback, I did try to declutter as much as I can. I'm one of those ppl who have to many things.:D

Well anyway, I have contacted my lender and they are okay to give me consent to let, but they advised me to wait till I found a tenant do it, as it will cost me £95 per year to get this consent to let.

Yes, I do know I would have to pay taxes on rental income. I am recording my expenses, as per advice of a tax accountant and this valuable site.

It was conscious decision to rent our property, as we are moving for work, and there might be a slim chance that we could come back here. We have now taken a second mortgage for the new place.


Is there any private sites I could advertise, and give my agents details for contact. I am unusually worried, for the fact it has been on the market only for 3 days.but I can't help it, and it is nice to talk your fear to ppl here. Thanks guys:)


Ps : any feedback on the asking price of rent, could help

solventblackbird

That's great you have consent to let.

What's your plan for when there are void periods or when repairs need doing?

DannyboyMidlands

I don't see the point in renting out a £230k house for a measly £925pcm. Gross yield of less than 5%. By the time costs, hassle and risk are factored in it doesn't seem worth it.

bee78

Thanks guys. Yes some of you are right the rental is not a lot, it is just enough to cover cost, and I think we would have to bring in another £100-200 towards cost ourselves, at some point.

Our mortgage on this property is £733. So the rent will be just enough to cover agents fee and mortgage. But I'm notlooking to make profit in this property. This property is my family home, which I love as much as my family. At the moment we can't part with it, but at the same time, work is our main priority now. We have both been given promotions and have to be near work. So that's why we have to this arrangement.

But the rental value as it is, will it attract ppl, is it reasonable.


Thanks

DannyboyMidlands

I'd say that given the value of the house, the rent is reasonable. You know the local area though. Are there many people renting 4 bed detached houses for £900pcm?

To me it seems crazy from all angles. As a landlord it wont make me enough money and as a tenant why not just rent a 3 bed for £600pcm, save the difference and eventually buy a place of my own.

ognum

does you village have a school? if it does then you have it up for rental at the right time.
IMO family houses in villages are more difficult to let, I have one and it is certainly more difficult than others.

can I suggest a couple of things that will make it easier, it's up to you to decide if you want to go for them

- Take pets, family house with availability for dogs and cats are more easy to let

- Offer a gardener, some people are put of by large garden maintainence and someone a couple of hours a fortnight may swing it

- Allow a longer let, many families do not want a six month contract if they have school kids, of course this has some risk

- Get a second or third agent, I have found getting several agents for a village house allows for competition and makes them work that bit harder

- Contact big employers, if there are any big employers near you that may have workers transferring in then go to the personnel departments and advertise your property with them.


Hope these help!