Is it a good time to rent your house out?

pippyt

going to put my house up for sale soon but dont think its guna shift, is it a good idea to just put it up for rent instead?

cheers

pinkshoes

Depends if the rent you get is enough to cover mortgage!

Don't forget to allow for mangement fees (12% of rent??), and empty periods (allow perhaps 2 months in every 14), and even tenants not paying rent.

It's worth using an agent to do the credit searches on potential tenants though.

Fred1_2

pinkshoes wrote: »

Depends if the rent you get is enough to cover mortgage!

Don't forget to allow for mangement fees (12% of rent??), and empty periods (allow perhaps 2 months in every 14), and even tenants not paying rent.

It's worth using an agent to do the credit searches on potential tenants though.

No it's not! You can get the credit searches and even references done for £35 (I used Tenant Verify, I guess you can find it on google). If you're that strapped for cash, you can even pass that cost on to your tenant. Most agents charge the tenant 1 week's rent plus VAT for doing the admin anyway. If you get a postitve credit search on the tenant / guarantor, there are insurance polices to cover non-payment of rent (although I haven't taken one out myself).

From what I've seen round here, houses that are rented by agents stay empty for weeks. I put a one line advert in my local rag (cost me £44) on the Saturday, showed 3 people round on the Sunday and all 3 wanted the house. I ended up renting to the first one, even though she's on DSS. She failed the credit search, but could supply a guarrantor who passed.

I don't understand the prejudice against DSS tenants. In my case, she's ideal. Single mum who wants a long term home for her and her kids. She pays the rent by standing order, keeps the house immaculate and gets on with the neighbours. I couldn't ask for more. If I'd gone through an agent, she'd never have been allowed to view the house and I would have had to put up with the agent;s choice of tenant not mine and of course forked out a fortune in agent's fees.

It's horses for courses, if you really want a hands off approach, then the agent;s fees might be worth paying. Personally, I would begrudge every penny. If you want, I can PM you with some info that I've picked up since I've been renting, which is only 6 months, but even in that short time, there are things I would have done differently, if I'd known.

Insomniac666

Fred1 wrote: »

No it's not! You can get the credit searches and even references done for £35 (I used Tenant Verify, I guess you can find it on google). If you're that strapped for cash, you can even pass that cost on to your tenant. Most agents charge the tenant 1 week's rent plus VAT for doing the admin anyway. If you get a postitve credit search on the tenant / guarantor, there are insurance polices to cover non-payment of rent (although I haven't taken one out myself).

From what I've seen round here, houses that are rented by agents stay empty for weeks. I put a one line advert in my local rag (cost me £44) on the Saturday, showed 3 people round on the Sunday and all 3 wanted the house. I ended up renting to the first one, even though she's on DSS. She failed the credit search, but could supply a guarrantor who passed.

I don't understand the prejudice against DSS tenants. In my case, she's ideal. Single mum who wants a long term home for her and her kids. She pays the rent by standing order, keeps the house immaculate and gets on with the neighbours. I couldn't ask for more. If I'd gone through an agent, she'd never have been allowed to view the house and I would have had to put up with the agent;s choice of tenant not mine and of course forked out a fortune in agent's fees.

It's horses for courses, if you really want a hands off approach, then the agent;s fees might be worth paying. Personally, I would begrudge every penny. If you want, I can PM you with some info that I've picked up since I've been renting, which is only 6 months, but even in that short time, there are things I would have done differently, if I'd known.

I may be forced down the route of renting my house after a sale has not materialized, see my other post called "help" any info you got would be much appreciated.. as it'll probably be DSS i'll be looking at.

gerad_way

Hi Fred 1
Hope you don't mind me being cheeky but I have just read your post to pipyt. I was wondering if you could pm me with all the info that you have picked up.??? The reason I am asking is that I am renting my first property out in a few weeks, and I have done lots of reading up about it, but no doubt I will have missed something.
I have never had a pm before so hope it is not too complecated to access.
Hope you don't mind

Fred1_2

Don't mind at all. I'll try to cobble something sensible together tonight and send it to you tomorrow, or should I just post it here so that if I say something that's complete rubbish, others can highlight it?

pinkshoes

Fred1 wrote: »

I don't understand the prejudice against DSS tenants.

I don't remember mentioning DSS, so not sure where the prejudice bit came from.

If they fail the credit check, but can either pay 6 months rent upfront, or have a guarantor, then there's not an issue.

Obviously the OP would do some research about agents and whether they were worth it or not. If they're moving away to a different area, then often getting someone to manage the property is helpful. Or at least have someone nearby that come pop round and sort any problems out.

Fred1_2

pinkshoes wrote: »

I don't remember mentioning DSS, so not sure where the prejudice bit came from.

You didn't and I didn't intend to accuse you of prejudice. I'm sorry if it came over that way.

I meant that I don't understand why there is the general prejudice against DSS. Many landlords and virtually all letting agents refuse to consider people on DSS - that's the prejudice that I don't understand.

pippyt

pinkshoes wrote: »

Depends if the rent you get is enough to cover mortgage!

Don't forget to allow for mangement fees (12% of rent??), and empty periods (allow perhaps 2 months in every 14), and even tenants not paying rent.

It's worth using an agent to do the credit searches on potential tenants though.

Thanks for the relies, yeah my mortgae is very low so that is not the worry, its just actuallt finding someone to rent it, with the market at the mo being so bad

i will defo go through a agent because i hav been stung several years back with a "friend" who kept on putting off paying me, and another tenant who didnt pay the council tax (couldnt prove to the council i was renting it because i never got the new tenants (friend of the original tenant) to sign a tenany agreement! yeah i know my stupid fault!))

anyway

can you put your house up for sale AND rent at the same time????

lil_me

pippyt wrote: »

can you put your house up for sale AND rent at the same time????

Yes but if it sold before the tenancy ended it would have to be sold 'with' the tenants. It would also put anyone looking for a 'home' rather than a 'short term rented house' off.

Bungarm2001

"I don't understand the prejudice against DSS tenants."

The reason why LL's are wary of taking on people who are on benefits is the LHA rules that came into force nationally on the 7th April this year.

Part of what this means is that anyone in receipt of housing benefit will now have it paid direct to them instead of directly to the LL. It's not difficult to see why LL's are very wary of of taking on anyone on benefits (it's the DWP not DSS by the way;) )

As far as I know, it applies only to new rental and LHA agreements.