Being a Private Landlord

Legacy_user

Hi Everyone,
After a disastrous first six months of renting out my partner's flat through an agent (which ran into 7 months, missing rent and now an empty property left in a right state) we are now looking at possibly renting it out privately.

However, neither of us has done this before and we don't really know where to begin. Any advice on what we should be doing? We're fixing what the old tenant broke and have taken the property away from the agent, as they had been showing potentials around with dirty washing up in the sink which had been left behind!:eek:

We're prepared for the round the clock calls which could come our way by being a private landlord, it's just everything else!

Any help, very gratefully received, thank you

Hoploz

I would go with an agent. Perhaps a different one though!

They have the resources at their fingertips to be able to do proper research on the tenants.

Malmo

Have you read through @G_M's comprehensive guides for landlords and tenants?

Marktheshark

Here is the advice you will Ignore.
Rental income profit is 10-15% of rent PA for those really good at it.
You have a substantial investment placed to make that profit.
Agents charge the whole profit margin, they get to skim the entire profit without investing anything.
Unless you can manage yourself, sell up, you will not make any money.

An empty house will earn more in capital increment than a tenanted one with an agent skimming the profit as you do not have the risk of spending thousands on fixing the place up every six months.

ognum

Marktheshark wrote: »

Here is the advice you will Ignore.
Rental income profit is 10-15% of rent PA for those really good at it.
You have a substantial investment placed to make that profit.
Agents charge the whole profit margin, they get to skim the entire profit without investing anything.
Unless you can manage yourself, sell up, you will not make any money.

An empty house will earn more in capital increment than a tenanted one with an agent skimming the profit as you do not have the risk of spending thousands on fixing the place up every six months.

You clearly have had a very poor experience. I am a LL, I use a letting agent, they are an independent small agency, I let to professionals that are well referenced, income checked and credit checked. I keep the properties updated and well maintained, respond immediately to tenant problems and properties are regularly inspected.

I am aware that it could happen any time but in my years of letting I have never had a property trashed, never had a rent payment that is late except for bank errors, never needed to evict a tenant and always ended tenancies on good terms. If a tenant want to leave early I do not charge them any fees but do expect them to allow others to view the property. I do not deduct from the deposit unless there is a clear case.

I maintain the rents about 5-10% below market rates and that encourages stability of tenants, they know when they have a good deal. If things need replacement like I am renewing the flooring in a bathroom I give the tenant a choice of four or five options so they can choose what they have in their home, providing it's not offensive to me their choice is fine.

I make a very good income from my properties and all have increased in value since purchase. For me it is down to the personal relationship I have with the three guys that run my letting agency. I know them all well, they know how I like things done.

Don't write off your buy to let, find the right agency to help you or do the letting a yourself.

AdrianC

autumnleaves wrote: »

After a disastrous first six months of renting out my partner's flat through an agent (which ran into 7 months, missing rent and now an empty property left in a right state)

Not exactly the agent's fault...

have taken the property away from the agent, as they had been showing potentials around with dirty washing up in the sink which had been left behind!:eek:

Sorry, were you expecting the agent to do the washing up and tidy the place up? More to the point, would you have been happy to PAY the agent (or somebody on their behalf) to do that?

AlexMac

Read GM's post, but while the Shark is right to be cautious, don't dismiss being a LL, nor even managing yourself. As I've said in many previous posts, I became a LL over 17 years ago almost by accident although the property was ideal as a BTL (cheap ex-council low-rise 2-bedder with low outgoings in a popular, commutable area).

I tend to use letting agents to find tenants, reference-check 'em (past LL ref, bank ref, income/bank statements, employer ref, credit history...), register deposits, set up the AST and do the inventory (usually at a cost equivalent to a month's rent) which gets the relationship off on a businesslike basis, I then manage and take rent (by SO) myself. Thus saving the 10-15% 'skim-scam' which annoys Sharkie above.

You need to be able to react fast, get good builders in, or cough up immediately for a new boiler, fridge, etc within days to keep good tenants, but while I've had the occasional unxpected bill for anything from a £2k boiler to a £200 washer, I've never had a bad tenant or a bad debt. And although the next 18 years might not see the meteoric house price inflation of the last two decades, you might even cop capital gain in the long run.

Doing self-assessment online tax returns is a doddle too, if you can string two numbers or brain-cells together.

Or you could buy a lot of scratch cards and lottery tickets or back the gee-gees if a DIY property portfolio isn't the right investment for you ...?

System

Definitely not looking to sell. But being a good 150 miles or so away from the property, it's weighing up what's best - a local agent on the doorstep or doing it ourselves.

ognum

autumnleaves wrote: »

Definitely not looking to sell. But being a good 150 miles or so away from the property, it's weighing up what's best - a local agent on the doorstep or doing it ourselves.

If you are 150 miles away I would find a good letting agent. You need to be able to respond to problems in a timely manner. Do you have a friend or relative who could do that? Would you consider selling and buying again closer to you?

I have a property that is that distance away but use an agent. Develop a good relationship and prompt them continuously. With rental property silence is not golden, remind them to visit the property and feedback, ask them what is happening regarding repairs. It really is a business, if you want to sit back and forget your asetts don't own property.

System

We have a good friend willing to help. We're going for an agent to find tenants for us and take on the managing side ourselves, with the help of said friend.

Being self employed on unstable incomes, we're sadly not in a position to sell and re-buy at the moment.

ognum

autumnleaves wrote: »

We have a good friend willing to help. We're going for an agent to find tenants for us and take on the managing side ourselves, with the help of said friend.

Being self employed on unstable incomes, we're sadly not in a position to sell and re-buy at the moment.

I would not actually ask a friend to manage my rentals, friends go on holiday, get sick and are not available.

I think either you should manage yourself (but you are not near enough) or use a GOOD agent.

Tenants should be able to access help quickly if needed, this is a business not a bit of fun on the side.