What will it cost me to rent my place? Advice needed for newbie to being a landlord!

supersezzie

Hi all,

Thank you for the really helpful advice. Just to clarify, it is not really because I can't bear to sell the house. It's more because I want to move in with my partner in a nearby city (only 45 mins drive so close enough to get to the flat as needed) but we don't want to buy somewhere until we've lived together first and know in the next couple of years exactly where we'd like to settle. Him moving in with me here isn't the ideal solution because of the location and commute it would involve.

For me financially, if I can even break even on the rent and mortgage, I'm saving £150 in bills that will be shared (I currently pay for the maintenance of my whole place and bills alone). Directline can do what looks like pretty comprehensive landlord cover for £92 a month which includes cover for tenants not paying their rent. If I get about £200 profit after the mortgage and landlord insurance is paid then I'll be able to put savings by to cover any disasters. The lease allows letting of the property and the only annual fee is ground rent at £150 per year.

I'm in a nice, quiet residential area which would hopefully mean good tenants but that's really good advice about going to see their place!

Does it still sound like a bad idea? I've been self employed before so I know how to handle the self-assessment aspect. And just because I've not done it before, doesn't mean I can't learn.... :-)

Cornucopia

Sounds okay.

The £92 per month for insurance sounds ridiculously high.

HappyMJ

supersezzie wrote: »

Hi all,

Thank you for the really helpful advice. Just to clarify, it is not really because I can't bear to sell the house. It's more because I want to move in with my partner in a nearby city (only 45 mins drive so close enough to get to the flat as needed) but we don't want to buy somewhere until we've lived together first and know in the next couple of years exactly where we'd like to settle. Him moving in with me here isn't the ideal solution because of the location and commute it would involve.

For me financially, if I can even break even on the rent and mortgage, I'm saving £150 in bills that will be shared (I currently pay for the maintenance of my whole place and bills alone). Directline can do what looks like pretty comprehensive landlord cover for £92 a month which includes cover for tenants not paying their rent. If I get about £200 profit after the mortgage and landlord insurance is paid then I'll be able to put savings by to cover any disasters. The lease allows letting of the property and the only annual fee is ground rent at £150 per year.

I'm in a nice, quiet residential area which would hopefully mean good tenants but that's really good advice about going to see their place!

Does it still sound like a bad idea? I've been self employed before so I know how to handle the self-assessment aspect. And just because I've not done it before, doesn't mean I can't learn.... :-)

I agree that £92 per month sounds very high.

Do you really need insurance for tenants not paying the rent? It's expensive and rarely pays much out anyway. Most tenants that you've taken on do prioritize the rent above all other bills as they really do value the roof over their heads. As soon as they miss a payment you start chasing and as soon as they've missed the second payment you give them notice requiring possession. You might only miss out on a few months of rent and it happens so rarely that you could put the majority of that £92 a month aside for that and self insure.

Marvel1

Another tip apart from the link above by Tom, visit this forum section daily, we get many posts from landlords and tenents.

DoctorDooLittle

Remember also, in some places you need to undergo training and hold a license to be a landlord.