Thinking of renting my house what do i need to know???

miss_corerupted

I've had my house on the market since febuary and only 2 viewers.
However i have just found out i'm pregnant so the need to move down with my boyf has become more urgent. It doesn't look like i'm going to sell anytime soon. So i was thinking of taking it off the market, renting for a while and put back on market when it picks up??

Does this sound like a good idea?? is it easy to be a landlord??? what things do i need to do?? etc

Badger_Lady

1) Are you on with an estate agent? You will need to check the terms and conditions to see what penalties (if any) you will incur by taking the house off the market. They're particularly tight on these at the moment, as they deal with a market downturn.

2) You need to find out whether you can get "permission to let" on your mortgage. Your existing mortgage lender may offer you this at a higher interest rate (I believe it's standard to add a full 1%). Alternatively, you may need to take out a specialist Buy To Let mortgage with another provider. If you're currently tied in to your existing lender, check how much it will cost you to switch.

3) You will also need Landlords insurance. Confused.com can offer quotes on this.

4) Research properties to let in your area and estimate how much rental income you could get. This will enable you to work out the financial viability, and your mortgage lender may also require this information.

5) Furnished or unfurnished? Does it need to be decorated? What do renters in your area expect, and how much more/less will they pay?

6) Letting management - would you deal with everything privately, or use a Letting Agent for all/part of the agreement? A Letting Agent can advertise the property and get tenants in place (carry out credit checks etc), and you can also ask them to manage it long-term for a fee. There are a lot of different deals out there, some of which will guarantee your rental income during periods of non-tenancy.

It can be cheaper to manage this all yourself, but it can also be a lot of work (particularly for a new family) - added risk of non-paying tenants, maintenance on the house etc.

Best of luck!

PasturesNew

When the market picks up it will be worth less than it is now.
Your best bet is to reduce the price and sell it now.

Renting your house out is a serious and complex undertaking which can go hideously wrong and backfire.

Plenty of threads on here about it. Even two still active in the last week where landlords have had tenants not pay/trash the place.

You should:
- join a Landlord Association
- check with your lender. They might say "yes" for a few hundred quid; they might insist you apply for a proper BTL mortgage (big fee up front, higher interest rate than for a residential mortgage). Notice I said apply, you won't get it unless the rent will pay 1.25x the mortgage interest.
- make sure you know the law on the rights of a tenant and the process/costs to get them out if they stop paying (months/£££s)
- work out how you will have maintenance done
- can you afford a new boiler if it breaks down a week into the tenancy?
- take out the right insurance so if the property becomes uninhabitable you can immediately get the tenant rehoused/paid for
- take out the right insurance so if it burns down your mortgage is still paid AND your tenant is rehoused

Being a landlord ISN'T a good idea.
It ISN'T easy, it's really hard work. What if you're in the middle of giving birth and you get a phone call that the boiler's blown up/property's flooded and your tenant is standing at the roadside needing you to provide them immediately with new accommodation.

And there's more ....

neas

would you be comfortable trusting tenants to keep it tidy and clean? You'd be responsible to maintain it and the furnishing (if any). Rental yield might not cover your mortgage it might though. Renting is tricky but not impossible and might be a good route for you.

In life we make choices,the future isn't certain so you could make the right call by renting or the wrong call by renting.

You might knock off 10k off the price now and then sell really fast... You haven't mentioned if you consider lowering the price of the house? Or are you expecting the housing market to 'pick up' soon?

As a FTB im not intending to be buying a house for 2 years after the prices have dropped significantly back to realistic value. You want most bang for your buck.. drop prices and sell quick.