Renting to Friends Whilst Abroad for 15 Months

Brown_Bear

I have friends from South Africa.

I think this is a completely crazy idea.

You'd have to pay me a LOT of money to leave my house and go to South Africa.
South Africa is an extremely dangerous place. Especially the rural parts. You'd need to have firearms with you all the time.

(The UK govt plays down the risks to keep good trading relations going with the mines etc - hence Theresa May ''dancing'' on TV - put to shame by Maria Zakharova).

Most South Africans I know are trying their best to get to UK, USA or Oz etc.

The HIV rate is extremely high and blood is not properly tested in the hospitals over there.

A few updates:
You won't be able to offset your mortgage interest against your rental income.
You may need to be licensed as a landlord (depends on which UK country your house is in).
You need to join a redress scheme.

Being a residential LL in the UK can be a nightmare - even if you live in the same street as your tenants.
And despite being 'friends' now - once money is involved, people change.

If I was your tenant, I'd just stop paying rent once you were overseas. I'd ignore your calls / messages. Or I'd make up some excuse why I could only pay less. I'd know you were in a weak position and I'd take advantage.

There's a whole load of admin just waiting to bite you on this one.

If this all seems a bit depressing - never mind.
Just watch Theresa May v Maria Zakharova 'dance off' on Sputnik. It will cheer you up.

silvercar

lucyelspeth wrote: »

Definitely not looking to shirk any responsibility, but we aren't looking to make a profit either, just trying to cover the mortgage and costs. We'll be living in rural Africa doing medical support work with our two kiddos so need to cover costs while we are away. I wasn't asking in order to 'get out' of anything. I'm asking because partly I'm not sure what we actually do need to do, and partly because it seems that some things are optional (insurance) and some things are not. I'm also interested in any tips on how to do each thing the cheapest way possible.

I'd appreciate help!

Thought this forum would be a supportive place.

I don’t know why your thread has attracted so much venom (and so much inaccurate advice). Most people would do what you are doing with little problem.

Of course you need to comply with all the rules and regulations for landlords. Ideally in your position I would appoint an agent to manage for you in your absence. It could save hassle even if it costs you 10% of the rent.

Make clear to the tenants the length of the contract and give them formal notice of the end date prior to your return. Everything carries a risk, but it’s mainly the problems that get reported on forums.

silvercar

If I was your tenant, I'd just stop paying rent once you were overseas. I'd ignore your calls / messages. Or I'd make up some excuse why I could only pay less. I'd know you were in a weak position and I'd take advantage.

Says it all really!

sevenhills

lucyelspeth wrote: »

We will have friends living in our house for 15/16 months.

Very difficult to be tenants for a specific period of time, is that for your benefit?
Moving house is never precise, it could be months either side. Why would a tenant just want to stay just 16 months?

Brown_Bear

silvercar wrote: »

I don’t know why your thread has attracted so much venom (and so much inaccurate advice). Most people would do what you are doing with little problem.

Of course you need to comply with all the rules and regulations for landlords. Ideally in your position I would appoint an agent to manage for you in your absence. It could save hassle even if it costs you 10% of the rent.

Make clear to the tenants the length of the contract and give them formal notice of the end date prior to your return. Everything carries a risk, but it’s mainly the problems that get reported on forums.

Well maybe my post could be considered 'venom' - but better to take advice and learn from the mistakes of others.
I think a lot of the negativity comes from the frequent tales of amateur LLs running into problems.

Yes - everything could turn out fine. But I would plan for the worst.

The problem I see is that the OP is planning to go off on this trip without considering that things in the UK are gradually getting worse. So they are potentially exposing themselves to a financial problem at a difficult time.

I would be stay put and build up some reserves for the future.

Brown_Bear

silvercar wrote: »

Says it all really!

Unfortunately, this is based on the experiences of those I know who have 'dabbled' as amateur LLs.

Honeylife

Interesting the OP never responded when most responses were along the lines of;
Dont Do It without an Agent - in case roof falls in, floods, fire etc
Dont Rent to Friends - not friends for long
Dont dabble being a LL - its a business!
Dont go to South Africa - HIV, guns long list
Etc...