Have to let my house :( advice please

Trollydolly_2

Ok dont know where to begin.....

I own a 2 bed semi, ex council house. It was paid for in cash and is in my name but i pay my mum and dad a sort of "mortgage".

I have had lodgers for the last year and they have all worked out ok.

Unfortunatley my grandmother has been taken ill so i have moved out of my house and moved in with her. Also i have given up my job to care for her.

So i need to rent out the whole house so i can still pay back my mum and dad. My last lodger has just moved out so the timing was just right.

Im going to do it through a letting agent to take away most of the hassle. I have enough to deal with right now.

So basically what im asking is could someone give me an idea as to what is a reasonable deal with a letting agent, percentage wise and what they will offer. Im guessing the house would rent for approx £105 a week by looking at what others have gone for on my street.

Any helpful advice would be greatfully appreciated.

TD xx

scrummy_mummy_2

Doesn't sound like you need any additional hassle so look at a full management scheme...this will probably cost between 10 and 15% of gross MONTHLY rental income.
Get a local agent to view and give you a current rental market assessment. If you want it let quickly, reduce the amount you ask for by £25 off of what the letting agent tells you.
With full management, all you need to do is give them (the agents) the keys and receive your rent.
There will be bills associated with setting up the property for rent (such as annual gas safety checks) ask what costs are associated when you speak to an agent.
You will also need to declare rental income for tax purposes...talk to the tax office for clarity (so don't spend all your rental income!)
You will also need to budget for ongoing maintenance/repairs and pay for insurances...an agent can help you with this to reduce hassle.
Once you are up and running, you can then shop around for chepaer deals on insurances etc.
If it isn't mortgaged, you won't need to get their permission....
Best advice, speak to a reputable local agent and they can help you, but don't stress....unfortunately, it will cost you between 10 and 15% of your gross rental income, but be prepared to haggle on this cost and they'll probably negotiate to get your business.

Good luck.

Trollydolly_2

Thanks ever so much for your help.

Ive been quoted 12% of the monthly fee and a £250 one off charge each time they find a new tenant. That includes 6 Months guarenteed rent.

Is that fair??

scrummy_mummy_2

Not sure about the £250 fee payable by you each time they re-tenant the place!?....I don't use an agent, I do it all myself.....ask another agent and see what they say. See if their fee structure is the same.
Don't settle for the first price they give you anyway, haggle, but be very self effacing...say things like, "I'd really like to use you because you have such a good reputation, the fees are making things tricky and I wondered if there was anyway we could get the managment fee down by just alittle bit to 10% because I'd really like to use you and don't want to have to go to (Other competitor)Agent, I'd much rather use you as I need someone I can stay with for a long time and trust....."
It might be worth considereing loosing the 'guaranteed rent' element of the quote the agent has given you, because this is generally an insurance policy they use and is quite expensive...in my experience these guaranteed rent policies are next to useless anyway because the tenant needs to be behind with the rent for a period before you can claim and you are unlikley to get a full 6 months, so check the details of the cover before you agree to it...agents sell there services on these guaranteed rent things but, like with all insurances, they can be wriggled out of. For the sake of £250 you could self insure if you want such a policy.
Alernatively...you might get lucky and your tenants stay for 7 years so you only have to pay the £250 once....if they change over every 6 months that could be £500 a year of your bottom line!