Giving a rental property an extra edge

ognum

Should have said if you are using managing agents then negotiate the %, they are flexible!

princeofpounds

Agents can be useful for tenant finds (unless you have an advertising channel that is quite specific to your client base, such as a university accommodation office).

I'd encourage you to do the management yourself if you can. You will need to get your head around the legal requirements (especially deposit protection and gas safety) but these are not hard if you have the time.

Why the encouragement? Agents that manage property can be ok for the occasional stuff but as soon as anything that REALLY needs managing comes along they are normally useless. Particularly if you end up with a bad tenant - they'll dump the rent collection and eviction process on your doormat.

A middle strategy is to sign up with an agent for a while but make it clear in the contract that you can take over management without paying fees on an ongoing basis to retain the tenant, after a year perhaps.

sandsni

princeofpounds wrote: »

It's the stuff which is semi-cosmetic that's one of the real drains in renting. Stuff like peeling paint, loose lino corners, slightly rotting windowframes.

When you own a house, you wouldn't put up with deteriorating conditions like that. But because the LL knows they won't need to stare them in the face every day they tolerate it, knowing it's someone else's problem. Keep ongoing investment low because that maximises return - up to a point there's an economic logic to it.

This isn't strictly true, many home-owners "put up" with conditions like that simply because they don't have the funds to fix it or something else is a higher priority. My parents' rental property is in better condition than my own house :cool:. And repairs in my parents' house have been "put on the back-burner" while repairs or redecoration in the rental property have been dealt with immediately. But when people are forking out their hard-earned cash to rent a place they have a right to expect something decent in return.

I would echo what previous posters have said about making sure you're informed about the relevant regulations and responsibilities as ultimately the buck will stop with you. And doing your own follow-up to references etc., even if you're employing a LA. Don't let yourself be railroaded into taking the first tenant the LA recommends. Better to have a bit of a void than be lumbered with a completely unsuitable tenant for the period of the AST!

Yorkie1

You've suggested a folder with EPC etc in. Yes, but also include copies (not originals) of boiler & other appliance instructions, and details of where the stop c*ck is, which electricity / gas suppliers the property currently has, what day of the week the dustmen come, etc.

Better_Days

hamster2013 wrote: »

when looking for an agent - get their fee's list: not only what they charge you as the landlord, but what they would be charging a potential tenant - as that can also be a factor which would scare tenants away - typically, ensure that they dont' double charge : ie some charge landlord AND tenants for the same service (credit check being a good example) - run from those EA's

This is so important. I rented for the first time for years earlier this year and was very surprised by the massive range in fees and what LA's dreamed up that they could charge for. One LA charged £30 to refund any overpaid rent and £60 for a copy of the tenancy agreement. And the application fees and credit check fees varied enormously.

For two similar properties LA fees can make all the difference. You could ring round the local LA's expressing an interest in a property similar to yours and ask what the tenant fees would be. You might have to do some probing questioning to get them to admit to all the things they charge for. Also it will be instructive to see how they treat prospective tenants.

Decide what sort of tenants you want - or don't want! Those with pets? Those with children? Those on benefit?

princeofpounds

This isn't strictly true, many home-owners "put up" with conditions like that simply because they don't have the funds to fix it or something else is a higher priority.

Of course it wasn't meant to be a universal truth. It's a generalisation, and the qualfiers around young professionals and urban experience were there for precisely that reason.

But I am confident it is reflective of the average situation in those markets. Personally I have lived in 9 rental properties, viewed well over 30 and been in the rented houses of a similar number of friends most likely. So the sample size of my anecdotal experience is not small.

The DCLG numbers seem to tally up with experience too.

http://www.upad.co.uk/blog/2011/03/41-of-private-rental-properties-are-in-poor-condition-2/

I commend your parents by the way. The rental market is not really one where consumers have a fair choice for several reasons, so competitive pressure on landlords is ultra-low.

Kiran

Thats a really good point asking for tenants terms and charges. I will be doing that.

Regarding the negotiating with agents of %ages etc, do you find it's better to play them off against each other or do you have other tactics?

Thanks

princeofpounds

Regarding the negotiating with agents of %ages etc, do you find it's better to play them off against each other or do you have other tactics?

I wouldn't mess around too much. Get initial quotes and sample contracts from ~3 agents. Pick the one you like, and offer to hire them based on the deal you want.

That would include any changes to the contract you would like to make, a request to cut the price (best if you can highlight another firm that's offered a lower price but they will probably all quote with some wiggle room) and whatever else is important.

If they match it, I wouldn't then play ping pong with the others and then come back to them.

japmis

whalster wrote: »

Dealing with it yourself is the key ! tenants like a private landlord they hate agents .

Very, very, very true!!

I've rented for the best part of 15 years and the places where I have stayed the longest and treated the house with more respect is where I've dealt directly with the LL.

tbs624

OP - beware this idea that using an LA is (a) necessary or (b) any guarantee that they will do a satisfactory job on [edit:your] behalf.

You may be a newbie LL, but anyone can set themselves up in business as an LA. No minimum qualifications, training, expertise and so on is necessary for them to be able to do so.

It is not hard to reference your own potential Ts: source of much anger from Ts is the huge mark up on credit ref fees once LAs are involved.

If you do decide to use an LA, ensure that they are voluntarily signed up to RICS, ARLA, NALs etc, and perhaps more importantly seek out the views of other local LLs ( via the local LL association)

princeofpounds wrote:

I'd encourage you to do the management yourself if you can. You will need to get your head around the legal requirements (especially deposit protection and gas safety) but these are not hard if you have the time.

my bolding.

All potential LLs should "get their head around" their legal obligations, regardless of whether going it alone or using an LA.
Never mind "if you have time" - time spent on that area will save a LL much time and money further down the line.

Totally agree with Bitter& Twisted on *not* slapping air fresheners all over the property. The best air freshener is an open window, not some artificial garbage that interferes with olfactory systems and is , as B&T says, usually used by someone to mask something unpleasant.