Guaranteed rental income .

phill2-0-0-3

Digging dude . I would much rather the house sold than have to rent it out . But feel I have zero choice at present and my morgage has gone onto the variable rate so increased by 50% a month .
On my road there is 5 houses for sale on a road of about 11 house .
And none of them are selling ones been on for nearly a year.

Edddy thank you for your response . I 'm trying to do all the research I can . But I am on a tight timescale . As I have to get the new build geting built as it will be coming upto winter and my builder doesn't work in winter .

So what concerns should I have with lettingsaproperty.com ?
Would they not cover rent from the get go ?
Over the twelve month period is it just two months I can claim for lost rent ?
Also they said I can do the viewings of the potential renters so I can see the sort of people I would be renting to ?

What questions should I be asking. And does anyone recommend any letting agency's .
Country properties charge 9% for basic rental . But that's with no guarantees of rent or any repairs - cover . And that would be £90 .

System

G_M wrote: »

:eek:


Or do you mean 20% below market rent..........:huh:



But I agree with artful and comms - I'm no fan of these schemes. If you're worried about arrears etc take out relevant insurance and /or guarantors and, better still, vet appliacants well.

Yes that exactly what I meant, guaranteed rent schemes have their place, if a tenant does default and need evicting that coast then comes down the Scheme and not that landlord.


I have had dealings with such schemes at that the time suited my needs

eddddy

phill2-0-0-3 wrote: »

Edddy thank you for your response . I 'm trying to do all the research I can . But I am on a tight timescale . As I have to get the new build geting built as it will be coming upto winter and my builder doesn't work in winter .

So what concerns should I have with lettingsaproperty.com ?

I have based my comments of a quick read of their website.

• Have you read their website?
• Have you read their rent guarantee insurance policy?
• Have you read their Home Emergency Cover insurance policy?
• Have you read their Agency contract?
• Have you read their standard AST for tenants?

You need to read and understand every detail of all of those, then many of your questions will be answered. (And look for the loop-holes. i.e. Think about what they don't say, as well as what they do say.)

Starting a BTL business is complicated, and it can be high risk, if you don't know what you're doing.

phill2-0-0-3 wrote: »

Would they not cover rent from the get go ?

Their website suggests they won't. They don't cover rent for void periods(unless it's following an eviction.)

You need to read the rent insurance policy to check.

phill2-0-0-3 wrote: »

Over the twelve month period is it just two months I can claim for lost rent ?

No - you've misunderstood. Their website suggests that you can claim 75% of rent for 2 months following a 'legal eviction'. (Their website says nothing about a 12 month period, or claiming for lost rent in other circumstances - such as voids between tenancies.)

You need to read the rent insurance policy to check - and find out what they mean by a 'legal eviction'.

phill2-0-0-3 wrote: »

Also they said I can do the viewings of the potential renters so I can see the sort of people I would be renting to ?

NO, NO, NO - don't rely on what a prospective tenant (i.e. a stranger) seems like during a viewing.

You should rely on thorough tenant referencing.

need_an_answer

OP you do understand that even going with one of these agencies you are still a Landlord...that wont change just because you have someone who is overseeing the property.

You'll still need to comply with legislation associated with a rental property and still need to cover maintaninance of the property.


I've read your other thread and I'm not convinced you are in a position to continue with either of your 2 projects you've asked for advice on.

You seem very vague on both,and certainly not informed on either.


Is this property that you are looking to rent out still up for sale?

If so perhaps you could post a link and we may be able to advise on the best way to achieve a sale for you rather than the protracted venture of trying to rent it out.


Is there a minimum you would sell for..perhaps you actually need to look at selling at a low price.


You don't come across as understanding the basics of becoming a LL in my opinion sorry.

G_M

OK- so it's NOT a guaranteed rental scheme!


With a GRS you rent (commercially) to the agent who guarantees under your contract topay you rent, every month,for X months.


They then find tenants and grant them ASTs at a higher rent - hence their profit.


What you are looking at is granting ASTs yourself direct to the tenant (albeit employing an agent to help) AND then adding on some insurance. so just as you would take out insurance against fire, you get insurance against the tenant defaulting on rent. But as pointed out, this can be very restricive so you need to read the small print.


I must say, like others, that your extreme lackof basic understanding doesnot bode well for this venture...


* New landlords (1):advice & information :see links in next post

* New landlords (2): Essential links for further information

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

markin

Maybe easier to get 2 lodgers in, and just keep it as your main address until you get it sold.

phill2-0-0-3

I completely understand what everyone is saying .

And I openly admit I don't have a clue . That's why I'm on here trying to get as much information from the people that do no , I do try and prepare for worse case synaro .

I have reduced the house by £20.000 . It was valued high end at £300.000 but I put it up for £290.000 . My major issue is mine is a 2 bed and there is a 3 bed at the end of the road for £260.000 it was 280k .
But the same day I reduced mine by 20.000 they did aswell .
Now there's is 260.000 no front or rear drive or exstention or downstairs loo . But at the end of the day it has three bedrooms .
The estate agent told me it previously had subsidence which has put a lot of people off .

But obviously it doesn't say this in the listing .

I will have a look at Northwood as they seem like they offer the most cover and guarantees . But after reading the reviews the service does seem to varie from area to area .
I have another viewing today so we will see how that goes . But I don't hold out much hope .
Can I rent out both bedrooms for say £100 a week ? And not live in the property ? Would this not be illegal ?

https://www.rightmove.co.uk/property-for-sale/property-62518926.html

That's the link for the property

I appreciate all the responses thanks for taking the time

phill2-0-0-3

I've been told I need a Assured shorthold tenancy .

If I'm planning on geting a buy to morgage .

Presumed Northwood don't offer these

diggingdude

I can't help thinking you are going to lose money on this project

steampowered

If you want a "guaranteed" income, buy a balanced investment fund which holds stocks & shares instead.

That will guarantee you a decent income.