Need to rent out flat - should I use an agency to manage it?

AdrianC

brianposter said:

Is it no longer possible to find tenants who will do the property management themselves ?

TENANTS to manage the property...?!?!

Sorry, do you want to explain your thinking there?

Stubod

..go with an agency, for a fully managed service they charge about 10%. Worth it if you do not have the time...

grumiofoundation

brianposter said:

Is it no longer possible to find tenants who will do the property management themselves ?

I would be very happy to do all the property management for my landlord, remind him when he needs to do a gas safety check etc. 

Do you think he will be happy to reduce my rent by 10-15%. 

grumiofoundation

london1990 said:

Hi there,
I do not want to sell my flat at this time but the quickest way to allow us to move in together is to rent out my flat.  I am not looking to make a profit.  I know that the general advice on here is not to become a landlord.  I don't have a choice though and renting out my flat is the only option right now because of our circumstances. 

Which is it?

The agency will also, for a fee obviously, take on a huge amount of the pre-rental administration such as ensuring gas safety certificate is in place, inventories, tenancy deposit etc. 

To be honest, I really can't be bothered with all of that and don't think I would have the time.

To be honest of this is your attitude you shouldn't be a landlord. Even if you get an agency to manage the property YOU are still responsible and liable for your legal obligations - e.g. deposit protection, gas safety etc. 

Case in point my last 2 properties, both managed by an agency - one case agents protected deposit late, one case agents 'forgot' to organise gas safety certificate until I reminded them. 

notrouble

brianposter said:

Is it no longer possible to find tenants who will do the property management themselves ?

Only if they know the precise legal wording to put in the letter to themselves when rent arrears arise.

notrouble

london1990 said:

... not sure if that happens much in practice, but it's my first ever home that I am renting out and I want to reduce the chances of it being trashed. 

That's natural, but letting a property to which you have some emotional attachment can be stressful. Tenants will rarely keep it (their home remember) as you would. However carfull you are in selection, trashing is always a risk, but even if not trashed, fair wear and tear may be greater than if it was still your home.

Windofchange

You should probably consider the age of your property too. If it is a new build, or things in there such as the boiler are reasonably new, then the chances of stuff going wrong are less. Not zero, but less. In this instance, I would be tempted to not have a management agency as long as you are up to date on your responsibilities as a landlord with things such as gas inspections and protected deposit schemes. 

A long time ago, I was in a similar position and managed things myself. I ended up renting to friends of friends which perhaps made things a bit easier, but for the two and a bit years I did it, nothing went wrong, and they didn't need to contact me for anything to do with repairs or maintenance. Hardly heard from them at all other than the occasional can we put a tv on the wall text. I also before this had rented a shop and flat alongside my father when his mother went into care, and again we did this ourselves whilst I was studying full-time and he was working full-time. Again, no issues, and other than the yearly rent review letter and usual landlord responsibilities, nothing took any time.

Guess as with most things in life, it boils down to what your time is worth, and what the risk vs reward is. If the rent will be £2000 a month, 13% is quite a bit of money. For £400 a month, not so much. I have learned over the years basic plumbing, electrics and plastering skills alongside pretty good DIY. I personally would be happy to accept the risk of self management as feel that unless something catastrophic went wrong, I'd be able to cope. I'm on good terms with a few tradesmen anyway. If your situation is very different and you don't know how to put an Ikea bookshelf together, then you may well be best opting for the managed option.

notrouble

Windofchange said:

.... If your situation is very different and you don't know how to put an Ikea bookshelf together, then you may well be best opting for the managed option.

But even if you can't DIY yourself, if you know a good local joiner, electrician, roofer etc then you just call them out yourself, which is all an agent would do.

Windofchange

notrouble said:

Windofchange said:

.... If your situation is very different and you don't know how to put an Ikea bookshelf together, then you may well be best opting for the managed option.

But even if you can't DIY yourself, if you know a good local joiner, electrician, roofer etc then you just call them out yourself, which is all an agent would do.

Quite. In a previous home that I lived in, I found tradesmen off checkatrade.com and never had any cause for complaint - they did a fantastic job with things that I couldn't. This is how I now know them and have used them from time to time as needed in other properties. As above, if you are talking flat in London, I am assuming the rent is going to be north of £1300 a month, so you lose £150 or so a month? Over your two years, that is something in the region of 3.5 grand. If you are going to be renting for £2000, that is around the 5 grand mark. For me, that would be worth spending the occasional weekend doing some painting, or shopping in Currys for a replacement fridge. 

If you get nightmare tennants who don't pay their rent and trash the place, then you may wish you had a letting agent to take the stress of that off your hands slightly. If you do your due diligence with references, get some slightly more mature London professionals in there who won't be throwing mad parties all week long, then you likely won't have very much to do. 

brianposter

AdrianC said:

brianposter said:

Is it no longer possible to find tenants who will do the property management themselves ?

TENANTS to manage the property...?!?!

Sorry, do you want to explain your thinking there?

Many years ago when I was in a shared flat, we not only replaced any white goods that failed but also ran a sinking fund to make improvements to the flat. Given that the rent was reasonable the system appeared to work well and seems to be what the OP might hope for.