Renting Out My Flat

[Marty Funkhouser]

Had a couple of estate agents around yesterday to give me an idea of what they'd charge to let & manage (6 & 4% respectively). It got me wondering whether I should do it all myself - has anyone here got experience of being a 'landlord'? Is it a major hassle? (For a 2 bed flat)

TIA

[andy400]

6% / 4% is bloody good - if that's for a fully managed service. For me it depends a lot on how far the rented property is from home & work. If it's at some distance, as mine are, then getting someone else to manage for you - if they're half decent - is the stress-free answer. If it's in the same town/locality then you can make more money and keep closer control by doing it yourself without too much problem (quality of tenants allowing!!).

[Timmy35]

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

[Marty Funkhouser]

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

[andy400]

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500 what?

[no1special]

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

Whats £1500? A months rent?

[Jasandjules]

Are your mortgage company happy for you to let out your flat?

[Marty Funkhouser]

andy400 said:

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500 what?

Thats how much I'd be paying (4% of the annual rent) for the agent to manage it and therefore how much I'd save doing it myself.

[Timmy35]

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500.......if that's 4% of your rent, then your'e intenting to rent your flat out for about £37,000 a year?

Jesus it must be some flat.

I guess £3000 + to rent a flat in London isn't that crazy. But then again I stand by my point, if you've got a flat worth what, half a million, with a rental income that size saving £1500 might not still be worth it.

Edited by Timmy35 on Tuesday 27th July 10:42

[Curry Burns]

So at that small amount (relative to your rental income), I would just let them do it....saves you the stress.

[no1special]

Curry Burns said:

So at that small amount (relative to your rental income), I would just let them do it....saves you the stress.

agreed

[Brabus Jord]

Timmy35 said:

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500.......if that's 4% of your rent, then your'e intenting to rent your flat out for about £37,000 a year?

Jesus it must be some flat.

if above is correct, your monthly rent out would be ~£3k so effectively 2 weeks worth of rent lost to be hassle free is well worth £1500!

[Marty Funkhouser]

Timmy35 said:

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500.......if that's 4% of your rent, then your'e intenting to rent your flat out for about £37,000 a year?

Jesus it must be some flat.

Apologies - Its actually about £650 a year....

Edited by Marty Funkhouser on Tuesday 27th July 10:44

[Timmy35]

Marty Funkhouser said:

Timmy35 said:

Marty Funkhouser said:

Timmy35 said:

that's what I was thinking. WTF would you take on all of the hassle yorself for the sake of 4%?

About £1500.

£1500.......if that's 4% of your rent, then your'e intenting to rent your flat out for about £37,000 a year?

Jesus it must be some flat.

Apologies - Its actually about £650 a year....

Edited by Marty Funkhouser on Tuesday 27th July 10:44

Ah.

Well the point stands really, get an arsey tenant, or have maintenance that needs doing, etc etc. is it worth paying someone about £50 a month to handle that potential hassle, out of a rental of £1350 a month.

Knowing what absolute a-holes some people can be I reckon it's worth paying the 4% for the peace of mind.

[Marty Funkhouser]

Think you may be right.

It may all be moot though, just checked with my bank and they are saying I'd have to reapply for a buy to let mortgage.....

[Neil H]

I'd say £650 a year is well worth it. They'll do the tenancy agreements for you and be the first point of call for the tenants, I think these two alone are worth it.

[Timmy35]

Marty Funkhouser said:

Think you may be right.

It may all be moot though, just checked with my bank and they are saying I'd have to reapply for a buy to let mortgage.....

Bastids.

[Marty Funkhouser]

Whats the worst that could happen if I didnt inform the bank?

[Timmy35]

Marty Funkhouser said:

Whats the worst that could happen if I didnt inform the bank?

I imagine your building and contents insurance might be void, and also legally speaking you would be breaking the terms of the mortgage so they could require immediate repayment.

Having said that we all know perfectly well that there are hundreds of thousands of people up and down the country who have bought a new place, let out the old one and forgotten to tell the bank.

Having said that, how are they going to find out anyway? I've never heard of a man from ABC Bank turning up at your house just to check it's you living there.

Edited by Timmy35 on Tuesday 27th July 10:56

[Chilli]

Marty Funkhouser said:

Whats the worst that could happen if I didnt inform the bank?

I guess they might find out, and rip up your old agreement and stitch you up with a new one.
I've rented my house....trust me, a management company is the way to go.