rentng out my house - what do i need to know/do
Discussion
hi all,
i'm coming back to the UK on friday for 2 weeks. during this time i need to get my house ready for being rented out. i have never done this before so could use some pointers or a list of things i need to do and be aware/wary of.
for instance - gas landlord's safety cert, stuff to comply with fire regs etc.
also, what should i be looking for in a fully managed lettings contract and what is the typical spread of % fees? i take it i don't need a BTL mortgage if it's my only property?
i'm coming back to the UK on friday for 2 weeks. during this time i need to get my house ready for being rented out. i have never done this before so could use some pointers or a list of things i need to do and be aware/wary of.
for instance - gas landlord's safety cert, stuff to comply with fire regs etc.
also, what should i be looking for in a fully managed lettings contract and what is the typical spread of % fees? i take it i don't need a BTL mortgage if it's my only property?
Each type of property/premises to let, comes under different types of regulation, so to keep things simple, the following information covers residential flats and houses.
Due to fire & health regulations, I rent all my properties unfurnished, by that I mean no bed, sofa, chairs, wardrobes etc. etc., although white goods I may include, an example of those type of goods being a cooker, fridge, washing machine etc.
If the premises to be let has any gas appliances, fire, central heating boiler etc., then one requires a Landlord’s Gas Safety Certificate, they same supplied by an approved Corgi Engineer. As far as the electrics are concerned there are no requirement for an annual safety check, although for your own peace of mind just carry out a visual check of sockets, switches, lamp holders etc. White goods, washing machines, kettles only have to be checked by a competent person, so again one can do visual checks.
At the time of showing around the property a prospective tenant, you should have to hand a Landlord’s Gas (Corgi) Safety Certificate covering every gas appliances/boiler in the property, and an Energy performance Certificate see link: http://epc.direct.gov.uk/index.html
I tend to try and do most of the repairs myself, apart that is from the gas boilers and gas appliances. I always carry electrical fuses, plumbing washers and front door lock cylinders c/w keys. I don’t get many call outs, but when I do, particularly loss keys etc. I always like to be prepared.
If your property has a mortgage against it, then both ensure that the mortgage company is aware of you renting the property out, and also ensure that the building insurance covers the same. .
Any Deposit taken needs both to be protected under the Housing Act 2004, together with information of the same noted on the Assured Shorthold Tenancy Agreement. There are three types of schemes for registering Deposits, I choose to use this type which cost me £30 for each Deposit; http://www.mydeposits.co.uk/ since with this scheme the Deposit money stays in my bank account, so any dispute they have got to get the money off me.
I only use letting agents to find potential tenants, and not for full property management, although in my part of the UK, Bristol, letting agents charge between 7 to 12% of the gross rental income for doing the same.
Lastly, let unfurnished with few white goods, through a good reputable letting agent at a realistic market rent, should achieve viable results for you.
Due to fire & health regulations, I rent all my properties unfurnished, by that I mean no bed, sofa, chairs, wardrobes etc. etc., although white goods I may include, an example of those type of goods being a cooker, fridge, washing machine etc.
If the premises to be let has any gas appliances, fire, central heating boiler etc., then one requires a Landlord’s Gas Safety Certificate, they same supplied by an approved Corgi Engineer. As far as the electrics are concerned there are no requirement for an annual safety check, although for your own peace of mind just carry out a visual check of sockets, switches, lamp holders etc. White goods, washing machines, kettles only have to be checked by a competent person, so again one can do visual checks.
At the time of showing around the property a prospective tenant, you should have to hand a Landlord’s Gas (Corgi) Safety Certificate covering every gas appliances/boiler in the property, and an Energy performance Certificate see link: http://epc.direct.gov.uk/index.html
I tend to try and do most of the repairs myself, apart that is from the gas boilers and gas appliances. I always carry electrical fuses, plumbing washers and front door lock cylinders c/w keys. I don’t get many call outs, but when I do, particularly loss keys etc. I always like to be prepared.
If your property has a mortgage against it, then both ensure that the mortgage company is aware of you renting the property out, and also ensure that the building insurance covers the same. .
Any Deposit taken needs both to be protected under the Housing Act 2004, together with information of the same noted on the Assured Shorthold Tenancy Agreement. There are three types of schemes for registering Deposits, I choose to use this type which cost me £30 for each Deposit; http://www.mydeposits.co.uk/ since with this scheme the Deposit money stays in my bank account, so any dispute they have got to get the money off me.
I only use letting agents to find potential tenants, and not for full property management, although in my part of the UK, Bristol, letting agents charge between 7 to 12% of the gross rental income for doing the same.
Lastly, let unfurnished with few white goods, through a good reputable letting agent at a realistic market rent, should achieve viable results for you.
shirt said:
Thanks for that 
It'll be let unfurnished but with all white goods. I did intend to sell given I only just finshed renovating [4yrs worth] but it's not worth it right now.
Do you have any recommendations for landlord's insurance?
Just use one of the comparison websites, its doesn't cost much more than normal house insurance BTWIt'll be let unfurnished but with all white goods. I did intend to sell given I only just finshed renovating [4yrs worth] but it's not worth it right now.
Do you have any recommendations for landlord's insurance?
The more white goods one leaves in a rental property, the more one becomes responsible for both their electrical safety and the repair of the same. Another point is that certain tenants have different need/requirement of certain types of white goods, and I have got tired of moving white goods in and out of a property, simply to satisfy a tenant’s differing needs.
Lots of the main insurance companies now do landlord’s property & contents insurance, with some even guarantying/insuring cover for loss of rent. As with other types of insurance cover, being a member of the local neighbourhood watch, or one’s local Landlord’s Association (do a google search) can bring a discount on the property & contents insurance. My membership costs me £40 per year, and for that I get a discount on my insurance, legal advice and legal documents, tenancy agreement etc. , and the chance to meet and talk to other local landlords.
Lots of the main insurance companies now do landlord’s property & contents insurance, with some even guarantying/insuring cover for loss of rent. As with other types of insurance cover, being a member of the local neighbourhood watch, or one’s local Landlord’s Association (do a google search) can bring a discount on the property & contents insurance. My membership costs me £40 per year, and for that I get a discount on my insurance, legal advice and legal documents, tenancy agreement etc. , and the chance to meet and talk to other local landlords.
This is just the one house, not a business. Don't intend to ever live there but I would like to keep things as simple as poss.
White goods are mainly built in - fridge/freezer, dishwasher and range cooker. I'll be buying a washing machine as well next week and plumbing that in.
I'm not hugely desperate for the rent so can afford to vet prospective tennents carefully. My place is in a conservation area and so was a big faff having all the restructuring/renovations approved and I spent a fair bit restoring original features. Don't want all that work [not to mention by freshly plastered/painted walls] ruined by the great unwashed.
White goods are mainly built in - fridge/freezer, dishwasher and range cooker. I'll be buying a washing machine as well next week and plumbing that in.
I'm not hugely desperate for the rent so can afford to vet prospective tennents carefully. My place is in a conservation area and so was a big faff having all the restructuring/renovations approved and I spent a fair bit restoring original features. Don't want all that work [not to mention by freshly plastered/painted walls] ruined by the great unwashed.
Some 3 years ago my daughter’s employers moved from Bristol to the Midlands, so having a newly acquired home in Bristol, and not wishing to commute daily/weekly to the Midlands, decided to rent her home out.
Fortunately for our daughter we can both manage, keep an eye on the property, and carry out menial repairs. Like yourself my daughter has no real need for the rental income, but there are also cost savings on Council Tax, and an empty property can be much more vulnerable than one that is occupied.
Her home has been fully let for the 3 years, with her present sitting tenants requesting permission to carry out painting and decorating works inside the property, which we have regrettably refused the tenants permission to do.
Any tenancy agreement that you or your letting agents draw up, should make it patently clear your instructions on issues such as decorating (painting), drilling of walls, etc. etc.
Renting one’s home immediately becomes a business, with the owner of that property needing to immediately stop classing the same as his/their home.
Fortunately for our daughter we can both manage, keep an eye on the property, and carry out menial repairs. Like yourself my daughter has no real need for the rental income, but there are also cost savings on Council Tax, and an empty property can be much more vulnerable than one that is occupied.
Her home has been fully let for the 3 years, with her present sitting tenants requesting permission to carry out painting and decorating works inside the property, which we have regrettably refused the tenants permission to do.
Any tenancy agreement that you or your letting agents draw up, should make it patently clear your instructions on issues such as decorating (painting), drilling of walls, etc. etc.
Renting one’s home immediately becomes a business, with the owner of that property needing to immediately stop classing the same as his/their home.
shirt said:
it's never been my home, i moved out here the day it was finished. i still have a UK ltd co. set up, would this be at all beneficial to me given i don't pay UK taxes? what's the deal re: rental income limits?
A house left unoccupied will still cost the owner/s monies, so making a saving and an income can be achieved through renting the same out. I have always considered "a saving" is no different than "earning", save £100 being the same "difference" as earning a £100.I am not an accountant, perhaps a post on the Business section might get you a response to your question from Eric, who is an account. My own thoughts are that one needs to sit down with an accountant/ tax adviser and go through all the differing taxes, tax rules, ones own personal details together with possible future scenarios/circumstances .
quick update and query:
i went home for 2 weeks and did all the outstanding jobs, including gas safety cert and an elecrical safety report.
the sparky [really nice polish guy working for a large regional firm] rectified a few faults and did the report. he told me the only things he would be noting were that the lighting circuits aren't on the RCD so aren't up to current regs. he says it is still safe and a good install [extractors on isolator switch, zone rated lights which aren't even in the zoned area] but he had to note it regardless.
the letting agency got the report and told me this has to be rectfied prior to letting. i really don't think so and believe what a sparky tells me over some 17yr old front office girl.
who's right?
i went home for 2 weeks and did all the outstanding jobs, including gas safety cert and an elecrical safety report.
the sparky [really nice polish guy working for a large regional firm] rectified a few faults and did the report. he told me the only things he would be noting were that the lighting circuits aren't on the RCD so aren't up to current regs. he says it is still safe and a good install [extractors on isolator switch, zone rated lights which aren't even in the zoned area] but he had to note it regardless.
the letting agency got the report and told me this has to be rectfied prior to letting. i really don't think so and believe what a sparky tells me over some 17yr old front office girl.
who's right?
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