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

coachman12

brianposter said:

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

Yep.........it's called "letting a fox run the henhouse "

Fosterdog

The logical thing to do would be to sell the flat, rent somewhere with your girlfriend and keep the money from the sale safe for when you are ready to buy again. If you rent it out and living with your girlfriend doesn't go well you will find yourself unable to move back into your own place. At least if you sold up first if things didn't work out you would have the money to buy again, or cover the cost of renting on your own while you get back on your feet.

grumiofoundation

coachman12 said:

brianposter said:

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

Yep.........it's called "letting a fox run the henhouse "

Well no it would be letting the hens runs the henhouse.

But should the hens run it since they provide all the eggs ? 🤔 

[Deleted User]

brianposter said:

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

Yes, it is, if the rent is 13% lower to compensate them for their time!

london1990

Fosterdog said:

The logical thing to do would be to sell the flat, rent somewhere with your girlfriend and keep the money from the sale safe for when you are ready to buy again. If you rent it out and living with your girlfriend doesn't go well you will find yourself unable to move back into your own place. At least if you sold up first if things didn't work out you would have the money to buy again, or cover the cost of renting on your own while you get back on your feet.

Hi there - I wouldn't be able to sell within the timeframes unfortunately.
Even if I did, where would I put that amount of equity?  Would I instruct the conveyancer to keep in in my client account and gain interest or would I have to put it in a special bank account given the issues with current accounts in the UK only being covered up to a certain amount in the event of collapse?

notrouble

london1990 said:

Hi there - I wouldn't be able to sell within the timeframes unfortunately.

Even if I did, where would I put that amount of equity?  Would I instruct the conveyancer to keep in in my client account and gain interest or would I have to put it in a special bank account given the issues with current accounts in the UK only being covered up to a certain amount in the event of collapse?

Solicitor' client accounts pay 0% (or maybe 0.1% if you are lucky).

Proceeds from a property sale are protected, without limit, for 6 months in bank accounts- currently paying around 1.5% instant access.

london1990

notrouble said:

london1990 said:

Hi there - I wouldn't be able to sell within the timeframes unfortunately.

Even if I did, where would I put that amount of equity?  Would I instruct the conveyancer to keep in in my client account and gain interest or would I have to put it in a special bank account given the issues with current accounts in the UK only being covered up to a certain amount in the event of collapse?

Solicitor' client accounts pay 0% (or maybe 0.1% if you are lucky).

Proceeds from a property sale are protected, without limit, for 6 months in bank accounts- currently paying around 1.5% instant access.

Yeh it would need to be for much longer than 6 months - possible a few years.

notrouble

london1990 said:

Yeh it would need to be for much longer than 6 months - possible a few years.

If keeping a large sum for 'a few years', consider investing, rather than saving. Go over to the savings and investments board here for advice.

brianposter

Poster_586329 said:

brianposter said:

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

Yes, it is, if the rent is 13% lower to compensate them for their time!

Someone seems to have an exaggerated idea of how much their time is likely to be worth.

[Deleted User]

Its not that bad being a landlord. Anyone with half a brain you can ensure you comply with the regulations etc. Personally Id just get the agent to do the important stuff like finding a good tenant, all the checks, EPC and the gas cert etc, secure the deposit. 

Sounds like your flat is in a decent area, so hopefully increase over the years you let it out! I can see your logit for definite. 

Once your tenants are all found and checked, have the rent sent to you direct by the tenant. Know a few good reliable tradespeople you can call on if things need repairing. The money you would have spent on the agent, just put in a separate sinking fund account for any repairs. 

Being a landlord of one single flat is hardly a full time job - good luck !