Renting out home

Knward3

We’ve lived in our house for just over a year. We love it and thought we’d be here for a while. 

Unfortunately partners parents have become unwell and it looks like we might have to relocate across the country for about 12 months. 

As we don’t want to sell, we are thinking about renting this house out. 

I know we’ve have to let the mortgage company know to get approval but does anyone have any advice in a situation like this, 

Estate agents are coming around next week for valuation 

housebuyer143

Knward3 said:

We’ve lived in our house for just over a year. We love it and thought we’d be here for a while. 

Unfortunately partners parents have become unwell and it looks like we might have to relocate across the country for about 12 months. 

As we don’t want to sell, we are thinking about renting this house out. 

I know we’ve have to let the mortgage company know to get approval but does anyone have any advice in a situation like this, 

Estate agents are coming around next week for valuation 

Only advice is to read into what being a landlord entails, all the safety certificates you need and what can we does go wrong and what you do if it 12 months you wanted to move back and your tenants didn't leave. 
Also, can you afford it if the rent isn't paid. 

Sorry for all the doom and gloom. It has a good chance of going fine but in my experience it's the ones who have no idea about property rental that are shocked and upset when something like this happens.

 Best line from a landlord "I need the rent to pay my mortgage, if he pays late then I do too".... don't be like this landlord. The consequences for you are much worse for not paying than they are for the tenant.

Brie

I am not in the rental market as I have heard too many stories about the difficulties (from both sides).  

But if I was ever to venture into this I would want to make it as easy and as hands off as possible.  This would mean getting in an agency that dealt with everything.  Possibly including guaranteeing the rent.  There's lots of experiences landlord/ladies that obviously don't go down this route but if you are thinking of it for only a relatively short period then it may make life much easier for you.

Exodi

Expect short shrift from this forum on your idea.

Nationwide (as an example) levies an additional 1% interest rate for temporary letting: www.nationwide.co.uk/-/assets/nationwidecouk/documents/mortgages/m30-letting-requirements.pdf

You'd also want to consider insurances and that's not starting on the gargantuan responsibility of being a landlord, and the risk of being able to get the property back when you want.

macman

Brie said:

I am not in the rental market as I have heard too many stories about the difficulties (from both sides).  

But if I was ever to venture into this I would want to make it as easy and as hands off as possible.  This would mean getting in an agency that dealt with everything.  Possibly including guaranteeing the rent.  There's lots of experiences landlord/ladies that obviously don't go down this route but if you are thinking of it for only a relatively short period then it may make life much easier for you.

Using an LA does not remove any of the many legal and statutory requirements of being an LL. The agent may do the admin, but if they screw up, it's the LL who is still liable.
OP, the problem with a 12m let is that it could take you as much as 8 months after notice is given to evict a tenant, should they stay in occupation at the end of their notice period. And they may not be minded to pay any rent during those months.

Stubod

..bad idea if you are looking to move back after only 12 months as the tenant may chose not to leave? ....and so much more to being a landlord these days...

MEM62

You need to clearly understand your obligations as a landlord.  You also need to understand the tax implications.  And finally, that year could be considerably longer if the tenant decides that they do not want to leave when the 12 months are up.  As a landlord you cannot end the tenancy.       

For a year - it's just not worth it.  

Knward3

Thanks

So would it be better just to sell the house? 

We don’t have the resources just leave it empty for a year and pay for 2 properties and it looks like we have to move 

housebuyer143

Knward3 said:

Thanks

So would it be better just to sell the house? 

We don’t have the resources just leave it empty for a year and pay for 2 properties and it looks like we have to move 

If you love the house then I would seriously look into renting it, but just ensure you know what you are getting into. 
Many people rent houses all the time and it's fine. 
I had 4 sets of tenants in mine, all left when asked, all mostly paid on time and all left the house in reasonable condition. You could get a bad one but just as likely you get one that's fine. 

If you do go into it just remember it's not your house and you can't expect the tenants to love it like you do. 

Go for a small local agent rather than a big one, like c...ls. vet the tenants very well. No rent upfront, no guarantors, no bad credit. No young couples trying to play house...

Exodi

MEM62 said:

You need to clearly understand your obligations as a landlord.  You also need to understand the tax implications.  And finally, that year could be considerably longer if the tenant decides that they do not want to leave when the 12 months are up.  As a landlord you cannot end the tenancy.       

For a year - it's just not worth it.  

Just to reinforce this message - there was a thread posted just a few days ago where a tenant is considering hanging his landlord out to dry for up to an additional year because the landlord may have forgotten to provide a 'How To Rent' booklet at the start of the tenancy.

There is no tolerance for mistakes as a landlord. Forgetting to protect the deposit within 30 days can land you with a fine up to 3x the deposit amount. You can not be casual about this - and I also wouldn't place all of your trust in estate agents getting it right either.

lookstraightahead

Knward3 said:

We’ve lived in our house for just over a year. We love it and thought we’d be here for a while. 

Unfortunately partners parents have become unwell and it looks like we might have to relocate across the country for about 12 months. 

As we don’t want to sell, we are thinking about renting this house out. 

I know we’ve have to let the mortgage company know to get approval but does anyone have any advice in a situation like this, 

Estate agents are coming around next week for valuation 

12 months is no time and most tenants don't want to move out that quickly. Personally if you can't afford to leave it empty for 12 months then you can't afford the 'safety net' finances you need as a landlord (eg not finding a tenant, tenant not paying, tenant not moving out etc).

I'm  so sorry for your situation I have been there with regard to looking after parents. Is there any way at all they could help you out financially to ease some of the worry?