Tenant referencing, rent indemnity and landlord insurance - recommended sites?

SKB_1217

Hi all,

I am a long time lurker, but first time poster and thought I would ask you lovely people for advice...

I am looking to rent out my property as I have taken a job two hours away.

My husband and I own the property with a residential mortgage, and have been granted Consent to Let. We have an EPC and landlords certificate for the Gas. We are in the process of drawing up a tenancy agreement and intend to have it checked by a solicitor to ensure it is watertight, as this might be something we intend to do more often in the future. We have buildings insurance. We have contacted our electrician to check out the integrated cooker (only fit 18months ago new) and advise us on any other electrical appliances that may beed checking (will be renting unfurnished, but maybe fridge / freezer?)

We had planned on using a fully managed letting agency, but having dug deeper, were astounded by some of the costs incurred and the very blase attitude of the agents when asked how long we woud be tied into their services ('dropping services can be re-negotiated at a later date,' 'price of dropping from fully managed to rent-collect can be 're-negotiated at a later date') and the fact that they won't 'allow' tenants to go onto a monthly rolling SPT after an initial AST, although I don't really think they can stop us doing so if I have understood correctly. quite frankly, I am not signing up to something I don't fully understand and where I feel, rightly or wrongly, that information is being witheld.

Furthermore, they weren't too happy that we would want to use our own tried and tested tradesmen for gas and electric and repairs (husband is in the building industry so we have some very reliable contacts). I am very cynical of Letting Agents and Estate Agents and being something of a meticulous control freak, I just don't believe they would be as thorough as I would be in dealings with my property.

With this in mind, we have decided to let the property ourselves. We listed the property on Rightmove today and have already had some interest, with viewings arranged for next week. My question now is, which are the most reputable sites for completing a comprehensive tenant reference, or would I be better asking a letting agent to do this for peace of mind? (but then again, I'm not even sure I would trust them to do it - told you I was cynical!)

Also, can anyone recommend where to buy landlord indemnity and perhaps rental income protection? (Is this worth it?) Would these have to be purchased through the same company who do the checks? I have left a message with my financial advisor about this, but probably won't get a reply until next week.

Sorry this is long - hope someone can help

Thanks

Werdnal

You might find this helpful:

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

G_M

In your position, I would do the referencing myself, not use an agent.

There are many companies who will do the credit search side of things (see link in werdal's post above) and optionally they will do references too.

But frankly I prefer to check previous LL/employer refs myself directly.

Do NOT accept "to whom it may concern" refs given by the applicant.... and probobly written by them too. Nor take on trust the phone number, or even address provided by the applicant for their employer.

Check the company address/contact number yourself to make sure it is not the applicant's brother...then phone/write.

All you are doing is ensuring they really DO have an income tocover the rent, and it is permenant not casual work. With previous LL, probe a little - if they were terrible tenants the current LL might be desperate to get rid of them...

If I sound over-cynical, sorry. But getting the right tenant is critical. But there is noreason not to DIY.

We have buildings insurance.

Landlord's building insurance? What about contents? It is optional of course, but have you calculated the value of your carpets, curtains, cooker.....Many LL Buildings policies include a basic £5K of Contents too for just this reason. They should all include indemnity insurance as standard.

Rental income protection policies are an option. I investigated years back, and decided not to go for this.
* usually you must use the company's full referencing service
* it excludes certain tenant catagories
* critically, they will exclude the first monthor two of lost rent, AND often only pay up to 6 months or so
* and to claim you will have to have met stringent terms.
* the legal cover is helpful ie to take court action against tenants, but personally I'd rather belong to a decent Landlord's Association, and get legal help there.

PersonallyI think its like PPI - often sold topeople who will never be able to claim. Again, maybe I'm over-cynical, and itmight be for you, but read the small print before deciding.

BitterAndTwisted

Join a landlords association. The services you require can be obtained or recommended via membership with many other benefits in addition. Plus, the cost of said membership can be offset against the rental-income for tax-purposes. Win/win!

SKB_1217

Thank you so much for your replies, very informative.

I will take your advice about ll and employer references, and also join a ladlord's association... Still undecided about the rent indemnity, waiting for the finer details from Paragon.

Thanks again, extremely helpful

whalster

You seem to have everything nailed down ,its good to see someone working out the true cost of a letting agent .
Remember its not just the costs to you but the costs to the tenant too ,you mention not going onto a periodic after six months but would not bother you to do that but coulc be sorted out later - it would bother a prospective tenant so if you do decide to go for collection only then clear this point up .
When showing people around mine I have a list of the standard charges letting agents in the area charge which for a couple often works out nearly another months rent which is a lot if they are asked to move after 6 months . Safe to say as a private landlord I win hands down.
You can buy a experian credit report from private landlord directory.com for £8 you can also download all the things you need to do to refference a tenant as a document for free ,Also you say you have your own tradesmen once again you can't beat that so the 24hour PA service to handle all your repair issues would suit you down to the ground take a look.