Advice on letting

[raceboy]

Due to no one at the moment wanting to buy the better halfs house we're thinking about the pros and cons of letting it.
Any pointers, or helpfull websites anyone can point me in the direction of?
I think it's a pretty rentable abode but not sure what the fine print on things like the mortgage, insurance, maintanance, etc are.

[singlecoil]

The big question is whether you are going to manage it yourself, or to let (and pay) agents to do it.

[eldar]

singlecoil said:

The big question is whether you are going to manage it yourself, or to let (and pay) agents to do it.

Doing it yourself will save 10-15% of the rental, and isn't difficult with a bit of effort. Lots of regulations, though.

[raceboy]

I don't mind a little work but to be honest at 10% it might be worth letting someone else sort out the issues, I'd guess the place would rent at approx £400pcm just boils down to how much all the 'extras' cost?

[singlecoil]

One (of the many) problems with agents is the way they charge for dong anything more than sitting at their desks surfing PH. If the handle breaks of the toilet they will have to send a plumber, and you will be paying not only for the plumber, but for their 'administration' of the work (when it might well be something you could have fixed yourself in 15 minutes).

[raceboy]

haworthlloyd1 said:

if you can't sell now do you think you could sell in 3 years for more? how about 5 years? if not then there is little point to letting as there won't be that much profit after hassle insurance letting agent fees, petrol, repairs, maintenance, new bathroom etc etc

To be honest 'profit' isn't whats driving the decision, at the moment we have 2 houses, we want to live together in one house, so other than board it up and default on the mortgage I don't see that many options.
If we can get someone else to pay the mortgage in the form of rent for the foreseeable future than great, if in a few years the housing market is more buoyant than it'll be for sale, if not it'll be more renting, then in 20 years it's a nice little pension.

Take the point on letting agents, I'd always have the thought it'd be money throw away.

[TallPaul]

singlecoil said:

One (of the many) problems with agents is the way they charge for dong anything more than sitting at their desks surfing PH. If the handle breaks of the toilet they will have to send a plumber, and you will be paying not only for the plumber, but for their 'administration' of the work (when it might well be something you could have fixed yourself in 15 minutes).

If you instruct an agent to manage the property, you can decide on repairs when you sign up. Most have 4 sorts of agreements-
1) For a one-off fee, the agents can source and vet prospective tenants and then hand controll over to you.
2) ALL repairs are your responsability, you organise and carry them out.
3) Minor repairs are done by the agents contractors (usually upto a cost of around£300)
4) All repairs are carried out by the agents contractors, regardless of costings.
However, in the current financial climate, you can strike whatever deal works best for you with the letting agents.
If you decide to source the tenants and manage it yourself, remember that the deposit must be placed in a government approved holding fund.
Option 1 may seem very attractive, but remember, the agents may not pass on to you the best tenants, as they have no interest in them once they become your responsability.