Renting out our flat...help please :)

Legacy_user

Morning,

Our apartment has been on the market since January, we went with a local agent as they only charge 1%...but they specialise in rentals. We were in a contract and couldn't put it on the market with anyone else until week 16. We had around 7 viewings with them but I felt as though they weren't trying hard enough to get potential buyers. They'd take ages coming back to me with feedback ect and the people they'd find wouldn't have mortgages in place and so on....so I felt they were wasting our time.

After the 16 week mark we went on with a bigger agent as well. We have had a couple of viewings with them so far but still not getting anywhere. Yesterday my partner spoke to them and they basically said we need to lower our price (even though I have already done that and physically can't afford to lower it anymore) otherwise we won't sell.

So after that we have decided to rent it out while we move in to another rental. But we literally have no idea how to go about it. We have been told how much we'd get a month for it and are happy. But not sure what we need to do with the mortgage....

Also, we are planning on renting it furnished but what exactly do we need to provide?

p.s. The reason we want to move so quickly is that we have a 6 week old. This place just isn't big enough and finding living here rather stressful.

I'd be grateful for any help/tips.

RAS

You need consent to let from your mortgage provider.

They will probably require a hefty amount of equity and the rental to be 125-150% of the mortgage cost.

There is a sticky at the top of the front page for new landlords; read it and join a LL association as you will get into an almightly mess if you do not do it right.

You might well be better taking the hit and accepting less equity to get the sale.

System

Thank you. I didn't notice the sticky, I'll have a read through.

Werdnal

Can you let it - freeholder may need to give consent and may refuse. Lender will need to give consent and may refuse.

Can you afford to let it - Freeholder and/or lender will charge you for permission to let, you need to keep a good contingency of cash to cover repairs, lost rent, eviction costs if tenants "go bad" and declare your rental income for tax (could affect other benefits, tax credits etc).

Then you need to sit down and thoroughly read this, and all the link it contains:
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

LittleMax

Why are you planning on renting it furnished? Don't you need your furniture for where you will be living? Unless it is the type of area for a business let, or appealing to young couples in their first property, most people have some furniture and would tend to go for unfurnished. Unfurnished is less hassle as less to worry about on the inventory and for repairs.

System

We were thinking furnished as was told we'd get more rent for it - only about 50 pounds...but that extra bit would help. I wanted to know exactly what was needed for furnished, if it wasn't that much, I'd just buy some decent second hand stuff but we need to fit a new oven and would buy a new mattress for the bed. Our apartment is really small....is a new build too so they will have washer/dryer, dishwasher and fridge freezer.

We are a little confused about the freehold. We were offered to buy it a few months back. I THINK someone else brought it but not 100%. We aren't sure who to speak to about it as all paperwork that came through to us doesn't make it clear who we can contact. Or make it clear what is actually happening.

Most of the apartments in this block are rented out and always have tenants. They are very rarely empty.

I wish we could lower the price some more but just don't have the money to pay the outstanding amount on the mortgage. I guess we could see an independent financial adviser...

I could moan all day about how much I hate living here. We have lived here for 6 years now and have been happy until about a year ago. Obviously, if we physically can't do anything then I will just have to grin and bare it until the market improves or we manage to get some money saved (which will be hard while I'm on maternity leave)!!

Oh, the area we live in is two minutes away from one of the hospitals and is in a really nice area. So it could appeal to medical staff or students.

whalster

You don't sound commited enough to be a landlord and I think it would hit you hard with all the things you would have to do .If it wereme I would take less for the flat and move on

Yorkie1

If you rent it out furnished, make sure that all of your soft furnishings have the requisite fire standard / safety label.

sandsni

Weigh up whether the extra £50 per month is worth the extra cost and hassle of being responsible for repairing and/or replacing items. It can be difficult to prove that an item of furniture is now unusable due to misuse rather than normal wear and tear, and deposit protection places the onus on the LL to prove financial loss so you may not be able to rely on the deposit to pay for all that needs replaced at the end of a tenancy.

LittleMax

You need to be clear about who you are aiming it at - you will get away with cheap furniture for students, but if you are aiming it at visiting doctors, a higher standard will be expected. What type of people rent the other flats in your block, this will also have a bearing, as professionals won't want to rent in a block with students.