Too risky to let out my flat ?

GDB2222

AdrianC said:

michael1234 said:

Crashy_Time said:

michael1234 said:

I'm emmigrating, selling the family home but plan to buy a 2 bed flat just to keep a foothold in the UK property market. Initially was thinking of letting it out but it seems incredibly risky to do so? As I understand it, a tenant for whatever reason could decide to stop paying rent and/or trash the place and it would take me a year or more of stress to get them out followed by a costly renovation.

It would seem a shame to leave a place empty and unused when housing is in such demand not to mention the rent would obviously be handy. Can I mitigate the risk with insurance or some other way or is there always going to be a risk of catastrophe in renting out one property ? Presumably the very wealthy can easily mitigate the risk by letting out dozens of properties but I'm not in that league.

Plenty of empty BTL around just now, that should be your first red flag IMO.

Do you have any evidence for that? Not saying you're wrong - just like to see the sources...

In my area (SE) I see rentals coming on to the market and then let out pretty quickly. That's partially anecdotal of course.

You expect Crashy's pronouncements to be based on reality and backed with evidence? Bless.

As it happens, the rental market in London is decidedly cool at the moment. Friends have had to reduce their asking rent by 15% compared to what they were getting. I had a lengthy void on one flat. 

Crashy_Time

michael1234 said:

Crashy_Time said:

michael1234 said:

I'm emmigrating, selling the family home but plan to buy a 2 bed flat just to keep a foothold in the UK property market. Initially was thinking of letting it out but it seems incredibly risky to do so? As I understand it, a tenant for whatever reason could decide to stop paying rent and/or trash the place and it would take me a year or more of stress to get them out followed by a costly renovation.

It would seem a shame to leave a place empty and unused when housing is in such demand not to mention the rent would obviously be handy. Can I mitigate the risk with insurance or some other way or is there always going to be a risk of catastrophe in renting out one property ? Presumably the very wealthy can easily mitigate the risk by letting out dozens of properties but I'm not in that league.

Plenty of empty BTL around just now, that should be your first red flag IMO.

Do you have any evidence for that? Not saying you're wrong - just like to see the sources...

In my area (SE) I see rentals coming on to the market and then let out pretty quickly. That's partially anecdotal of course.

The evidence of seeing signs when I walk along the street. Why do you think that Brexit/Covid wouldn`t affect the BTL market?

michael1234

Neil49 said:

You could use a managing agent to organise the letting and maintenance of the property and take out insurance to cover issues such as none payment of rent or eviction.

Yes, it all costs money but at least someone will be there to sort out any problems on your behalf.

Not sure what they would do in the doomsday scenario of tennant not paying rent and trashing the property ?

pumas said:

Do you need the money from the sale of the house? Why not keep the house and let it out.

Yes and we did think about letting it but its a large house and there are not many such houses for rent and those that are take a long time. If you could afford to rent a large house then why not but a slightly smaller one with a mortgage?

It also puts all eggs in one basket

.AdrianC said:

You expect Crashy's pronouncements to be based on reality and backed with evidence? Bless.

I can see that now. "Thanks" for your sarcastic comment.

steve866

michael1234 said:

Neil49 said:

You could use a managing agent to organise the letting and maintenance of the property and take out insurance to cover issues such as none payment of rent or eviction.

Yes, it all costs money but at least someone will be there to sort out any problems on your behalf.

Not sure what they would do in the doomsday scenario of tennant not paying rent and trashing the property ?

pumas said:

Do you need the money from the sale of the house? Why not keep the house and let it out.

Yes and we did think about letting it but its a large house and there are not many such houses for rent and those that are take a long time. If you could afford to rent a large house then why not but a slightly smaller one with a mortgage?

It also puts all eggs in one basket

.AdrianC said:

You expect Crashy's pronouncements to be based on reality and backed with evidence? Bless.

I can see that now. "Thanks" for your sarcastic comment.

You’ve said yourself it’s a doomsday scenario. Of course there is some risk attached but there are many, many successful landlords. Does anyone have stats in how many rentals require evictions through the courts? I would imagine area and value makes a difference also. 

Murphybear

steve866 said:

michael1234 said:

Neil49 said:

You could use a managing agent to organise the letting and maintenance of the property and take out insurance to cover issues such as none payment of rent or eviction.

Yes, it all costs money but at least someone will be there to sort out any problems on your behalf.

Not sure what they would do in the doomsday scenario of tennant not paying rent and trashing the property ?

pumas said:

Do you need the money from the sale of the house? Why not keep the house and let it out.

Yes and we did think about letting it but its a large house and there are not many such houses for rent and those that are take a long time. If you could afford to rent a large house then why not but a slightly smaller one with a mortgage?

It also puts all eggs in one basket

.AdrianC said:

You expect Crashy's pronouncements to be based on reality and backed with evidence? Bless.

I can see that now. "Thanks" for your sarcastic comment.

You’ve said yourself it’s a doomsday scenario. Of course there is some risk attached but there are many, many successful landlords. Does anyone have stats in how many rentals require evictions through the courts? I would imagine area and value makes a difference also. 

steve866 said:

michael1234 said:

Neil49 said:

You could use a managing agent to organise the letting and maintenance of the property and take out insurance to cover issues such as none payment of rent or eviction.

Yes, it all costs money but at least someone will be there to sort out any problems on your behalf.

Not sure what they would do in the doomsday scenario of tennant not paying rent and trashing the property ?

pumas said:

Do you need the money from the sale of the house? Why not keep the house and let it out.

Yes and we did think about letting it but its a large house and there are not many such houses for rent and those that are take a long time. If you could afford to rent a large house then why not but a slightly smaller one with a mortgage?

It also puts all eggs in one basket

.AdrianC said:

You expect Crashy's pronouncements to be based on reality and backed with evidence? Bless.

I can see that now. "Thanks" for your sarcastic comment.

You’ve said yourself it’s a doomsday scenario. Of course there is some risk attached but there are many, many successful landlords. Does anyone have stats in how many rentals require evictions through the courts? I would imagine area and value makes a difference also. 

Area does make a difference.  I was in the business for a long time in rural Devon.  Number of trashed properties = 0.  Number of times landlords took tenants to court = 1.  

brianposter

Do corporate rentals not exist any more ?