Letting agent some advice as a new landlord

Marktheshark

If you are renting to make money.
Profit is at best for those really good at it around 10 - 15% per annum of annual rent.
If it was any more, there would be no small landlords as investment bankers would be in on the game.
Agents skim the profit, you pay the bills.
You make the investment, agents take the entire profit margin without making any investment.
Poor landlords wont even make anywhere near that so they end up losing money.
If you do not understand profit margins of buy to let, get out now, you wont make any money.
Sounds great in practice, they only take a percentage, but that is your profit they are taking and what they fleece the tenants on top in fees.

Very few that use agents make any money, those that run things themselves will make the average yield of somewhere between 10-15% of annual rent each year.
Some a bit more, some a bit less.
The agents, will make themselves a fortune as they invest nothing and skim the entire profit from the landlords.
It takes ten years to work this out.
You can think about it now.

silvercar

...My next concern is that I made it very clear I wasn't renting the property to anyone receiving house benefit and on Thursday they came with details of someone who is interested but had HB top up ...

HB top up suggests a working person who is entitled to a top up because their income is low. Working people tend to have lower wear and tear on a property because they are out all day.

G_M

Read:

* Letting agents: how should a landlord select or sack?

* New landlords: advice, information & links

Innys1

Guest101 wrote: »

Well since not everyone on benefits is a scum bag, I'd take every application on it's own merits. I certainly wouldn't discount someone based upon one factor.

Someone I knew was hit by a Nissan driver, so I suspect all Nissan drivers are careless. And dangerous now.

So, are you a landlord? Talk is cheap and I strongly suspect when push comes to shove, you wouldn't entrust any property you owned to a someone who was more of a risk than others.

Like I said, it's a landlord's choice who they let their property to and no one's else's business, certainly not yours.

Guest101

Innys1 wrote: »

So, are you a landlord? Talk is cheap and I strongly suspect when push comes to shove, you wouldn't entrust any property you owned to a someone who was more of a risk than others.

Like I said, it's a landlord's choice who they let their property to and no one's else's business, certainly not yours.

I used to rent out property's as part of family investmens. Benefits were not an issue.

And like i said, its a public forum, expect people who dont agree with you.

PS - i dont trust Nissan drivers... oh wait, it ridiculous to stereotype

Old_Git

I prefer not to have housing benefit tenant but I have had them with little problem .
A working tenant may also be getting housing benefit top up .
Dont rule out HB tenants ,the disabled can be good tenants .
If you can get a reference from a previous landlord (not the present landlord ) .
Dont go on credit checks ,a tenant may have rubbish credit rating but still pay the rent .

Innys1

Guest101 wrote: »

I used to rent out property's as part of family investmens. Benefits were not an issue.

And like i said, its a public forum, expect people who dont agree with you.

PS - i dont trust Nissan drivers... oh wait, it ridiculous to stereotype

This works both ways. I don't agree with you and, based on past experiences of my friends, I will stereotype, thank you for your concern. That's the human psyche - to learn from mistakes.

I don't believe that you don't stereotype - every one does in one way or another, some of us are just more honest about it than others.

CraftySaver2689

Thanks to everyone for replying however the thread is not about whether I will or won't accept HB after a lot of research, conversations with other landlords I have made my decision on that point.

Everyone is entitled to their opinion and what they will/won't do.

The point of the thread was whether the agent is acting the way all agent will or if they are slacking already before the process has even begun

Thanks G_M I have looked at those links and saved some good information down

ripplyuk

My recent experience with letting agents has made me think they are ripping off both the tenants and the landlords. I've applied for loads of houses and have been charged various non refundable fees only to be told the landlord doesn't want housing benefit. Surely they would have known that beforehand. I've now used up all my savings trying to get houses that I probably never stood a chance of getting. The agents make more money but the landlord has to wait much longer to get a tenant.

I know other people who get some housing benefit top up and the only way they managed to get a house was to lie, and not tell the agent. They pay the rent by direct debit themselves, work full time, and the landlord has no idea they are getting HB.

OP, I understand that your insurance won't allow you to accept HB but I'd suggest advertising the property yourself and avoiding letting agents. The ones I've dealt with are only thinking of their own profits and you may have no clue what benefits your tenant is claiming anyway. It would also be very helpful to people like me as I wouldn't have to pay to find out you don't want me as a tenant.

Marktheshark

The letting agents are not "slacking" they are doing what letting agents do.
They will have taken hundreds of pounds of that poor mug on HB and will turn them down when you answer the question and say no and they will lose all their money.
They will also take ALL if not more of any profit you hope to make on such huge investment.
You are in Bed with the devil here and by the sounds of things you are going to have to work this out the "very hard way" .

Someone already lost a few hundred quid in fees for a property the agent knew they could not let to them and you think they are going to be fair and above board with you as well ?

If you must use an agent, at least get to the bottom of what has gone on here and what they have been charged when you said no HB.