Renting out a property

[Womerry2 10]

Being a landlord is easy until you encounter a truly bad tenant - and there really is no telling how someone is going to behave. We have had no problems at all for 17 years, but are currently stuck with the tenant from hell who sees no real need to pay rent, has turned a lovely house into a disgusting hovel and refuses to leave, in spite of the fact that we gave him three month's notice.

 

We have to go down the court route, which takes time and money. Meanwhile, the family friend who needs a place to live has had to go back to Afghanistan without being able to move his things in during his recent leave.

 

The moral: It all depends on the tenant you get. So if are not in it for the money but care about the house/flat, be very, very careful indeed who you rent to and NEVER buy into any hard-luck-stories ...

[wadsleyblade 10]

Being a landlord is easy until you encounter a truly bad tenant - and there really is no telling how someone is going to behave. We have had no problems at all for 17 years, but are currently stuck with the tenant from hell who sees no real need to pay rent, has turned a lovely house into a disgusting hovel and refuses to leave, in spite of the fact that we gave him three month's notice.

 

We have to go down the court route, which takes time and money. Meanwhile, the family friend who needs a place to live has had to go back to Afghanistan without being able to move his things in during his recent leave.

 

The moral: It all depends on the tenant you get. So if are not in it for the money but care about the house/flat, be very, very careful indeed who you rent to and NEVER buy into any hard-luck-stories ...

 

 

 

Wise words...... had that experience on more than one occasion!

[Guitargirl 10]

Hi

 

Posting on behalf of a friend - He is looking at buying a property in Rotherham as a future investment and then renting it out. He is very new at this so can anyone advise on what things he ought to consider before going ahead.

 

Suggestions appreciated.

 

Thank you

GG

[dan2802 53]

He will need a buy to let mortgage and at least a 25% deposit.

Talk to a financial advisor.

[ccit 10]

There are plenty of empty properties for rent in Rotherham. He should consider that if he cannot let it he will still have to pay the mortgage. He will also have to pay council tax even though it is unoccupied. There is always the possibility of getting bad tenants who wreck the place and don't pay their rent. Evicting them is not easy and the landlord has to abide by the law.

 

Unless he uses an agency he will have to maintain the property himself. If he isn't very skilled at DIY or is too busy then he will have to employ tradesmen to do the work, the cost of that needs to be factored in.

 

He will also need to complete self assessment for income tax (UK Property). The best advice you can give this person is not to do anything until he has studied every factor. Tell him to head off over to the Landlord Zone Forum where there is advice and horror stories.

[tlangdon12 13]

They should talk to a big letting agent to find out what sort of properties are in demand. But they should be clear that they will not view any properties for sale through them; otherwise they will just tell them that they have exactly what they need!

[Jeffrey Shaw 93]

NB: do not rely on a Letting Agent (big or small) for knowledge of law and legal advice.

Few seem to have sufficient depth of knowledge, sad to say.

[Fitproperty1 10]

Hi,

 

Overall basics,

 

He will need a Buy to Let Mortgage with minimum 25% deposit and funds to refurbish the property to a good standard (poor quality housing generally means you get poor quality tenants and things get worse from there)

 

When you make an offer on a property I would always advising getting a full building survey done (some people will disagree) but for the sake of a few hundred pounds I think its better to be safe than sorry)

 

Landlords buildings and contents insurance (normal home insurance will not cover the property)

 

Maybe a good rent guarantee policy (they start from around £70.00 for a years cover) its an absolute must if you are reliant on the rent to cover your mortgage payments (always check the terms as some policy's are not that good)

 

As far as what type of property to buy for a first timer I would advise either a 2 or 3 bed (covers the widest section of the market, good strong supply of tenants pretty much everywhere) if you buy a flat/apartment remember to the check the service charge (this can eat away at all of your potential profit in some cases) also if its leasehold check for any restrictive covenants (Jeffery is the man to speak to about such things)

 

nice and neutral inside, I always tend to spend extra to get really hard wearing stuff (again some people will disagree) but for me every time I move tenants out of my houses it takes very little to make them look brand new again so I think its worth it.

 

Then he needs to decided if hes going to let it himself (I would strongly recommend against this for a first timer) use a let only service (letting agent markets and references tenants for you then you take over day to day management) or fully managed where the agent manages everything.

 

I would say never use a large agent as they cost a fortune, the service is poor and the staff for the most part have very little experience (apart from maybe the branch manager who you will never be able to contact). but also make sure small agents have been up and running for sometime etc etc (for me its down to gut feeling) again some people will disagree.

 

If he wants any specific advice feel free to private message me.

 

Cheers

[GrannyGranny 10]

I've just bought my first BTL and it is a daunting subject if haven't doner it before.

Do lots of research online.

Go and chat to an Agent even if you don't decide to rent through them.

They can do varying levels of management from just finding the tenent for you to fully managed.

Research the area, are there lots of rented? Do houses take long to sell? What type of tenent does he want? DSS, couples? families? shared?

Go and talk to a mortgage lender and find out firstly how much he can borrow.

This will depend on, among other things, the predicted rental income so he will have to have some idea of this initially.

Go on the forums for landlords?

TBH if he hasn't thought of most of this already he has a fair bit to find out before he buys anywhere.

[Guitargirl 10]

Thank you for the wealth of advice you have all sent me. It is so rewarding to see people who take the time and trouble to help others.

 

Thank you

gg

[lawsom34 10]

Just one thing to add its not always necessary to have a buy to let. This I know as I let my house off a normal mortgage with the lenders permission and all the agencies involved are aware.

[Fitproperty1 10]

Hello Lawsom,

 

This is true, I've done it my self when I first started (you tend to be on a better rate too) but its not a long term plan and not possible to do if you are looking to build a portfolio.

 

Cheers