Manage a rental or hire an estate agent

Adly812

It's my second buy to let after selling a previous rented property. I've always got an estate agent to manage the property previously. But I am tempted to take the job over myself to save money. I live only two miles away from the buy to let and I'm competent and professional enough to handle the responsibility. I guess I'm just nervous as I've never done it alone. If I use the agent to find the tenant, set up contracts, register the deposit in the tenancy scheme. Ensure I have my fire checks/gas safety/Carbon monoxide, correct insurance. What other considerations should I address? Apart from fixing the house and keeping it in order, doing regular check ups. What do estate agents do that I can't myself?

Mossfarr

Why not cut the Agent out completely, find your own tenants, set up the contracts yourself and sort the deposits? I have never used an agent myself and never had a problem.
You need to be thorough regarding checking their references and going through bank statements with a fine toothcomb. Trust your instinct and don't take any chances.
Join one of the Landlord websites (I personally use RLA.org) they provide all the documents you will need, are full of great advice and provide very good support helpline. There is also an online forum which I have found invaluable.

Finally, never get too friendly with your tenants always remember it is a business arrangement, it will be much easier to manage this way.

Sarastro

It largely depends on how you value your time. If the time it takes to do all of that work doesn't generate enough income / hour to make it worthwhile - don't bother. I.e. if you can earn more / hour doing something else, then you should give it to the Agent.

G_M

As you are local, not completely new to BTL, presumably have access to local tradesmen if needed, and willing to put in the time, I would take over.

But you must read up on the legal requirements......

Smb3088 wrote: »

..... If I use the agent to find the tenant, set up contracts, register the deposit in the tenancy scheme. Ensure I have my fire checks/gas safety/Carbon monoxide, correct insurance.

I would not let the agents handle the deposit. Collect and register it yourself. If it is registered by the agent, but you then have no further contractual relationship with that agent, what happens when the tenancy ends? You can't release the deposit, so you go back to the agent who has no interest as you've not paying him anymore....

I suggest you perhaps use the agent to find prospective tenants, via his normal marketing channels, then pass those contacts to you.

You vet them. You check their credit. You choose which one. You get the contract signed. You take the deposit and register it. And collect the rent. And provide the tenant with the documents (both statutorily required and additional sensible stuff).

See

** Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

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

Adly812

Some amazing advice and certainly valuable reading. I'll definitely use all these helpful points. If anyone has some landlord insurance recommended companies I'd be grateful. Currently getting that sorted now.

Mrs_pbradley936

Smb3088 wrote: »

Some amazing advice and certainly valuable reading. I'll definitely use all these helpful points. If anyone has some landlord insurance recommended companies I'd be grateful. Currently getting that sorted now.

The RLA have good insurance (Residential Landlords Association).

G_M

Smb3088 wrote: »

Some amazing advice and certainly valuable reading. I'll definitely use all these helpful points. If anyone has some landlord insurance recommended companies I'd be grateful. Currently getting that sorted now.

I assume you mean LL's buildings insurance? Shop around in the usual way as premiums will vary by property type, location etc. But check what is/isn't included in the cover too.

Or do you mean rent protection insurance? Again, shop around but check small print carefully. There are many exclusions before it pays out, as well as limits, so make sure it's wrth having.

motherofstudents

Shop around for insurance obviously but have a look at https://www.justlandlords.co.uk I have used them for the past 6 years and they do seem to cover a lot of extras.

Dorian1958

You also need to have a think about how you are going to handle the inevitable issues that will arise, make sure you agree with your tenants what circumstances merit a phone call, and what can just be an email. If they are dealing directly with a private landlord, their expectations need to be managed. Also have a think about whether you will mind being contacted when you least expect it, are you comfortable taking a call lying on the beach, or would you prefer to have a trusted friend/ family member to take over things in your absence? The more you can do at the initial setup stage to make everything as perfect as you can, the less likely you are to be contacted.

[Deleted User]

Dorian1958 wrote: »

You also need to have a think about how you are going to handle the inevitable issues that will arise, make sure you agree with your tenants what circumstances merit a phone call, and what can just be an email. If they are dealing directly with a private landlord, their expectations need to be managed. Also have a think about whether you will mind being contacted when you least expect it, are you comfortable taking a call lying on the beach, or would you prefer to have a trusted friend/ family member to take over things in your absence? The more you can do at the initial setup stage to make everything as perfect as you can, the less likely you are to be contacted.

This reminded me of a friend of mine who rents out 5 properties. Christmas Day 2016, she's at the dinner table with her family, knife poised to carve the turkey, when a tenant rings up with an urgent problem. She had to go over there to sort it out, including finding an emergency plumber. Took hours and by the time she got back, everyone-else was relaxing, full of Christmas dinner & wine, and she sat down to cold leftovers

G_M

Corona wrote: »

This reminded me of a friend of mine who rents out 5 properties. Christmas Day 2016, she's at the dinner table with her family, knife poised to carve the turkey, when a tenant rings up with an urgent problem. She had to go over there to sort it out, including finding an emergency plumber. Took hours and by the time she got back, everyone-else was relaxing, full of Christmas dinner & wine, and she sat down to cold leftovers

at least she didn't get there to find the tenants wanted a light-bulb changing......