Renting a house out
Discussion
So im in a dilemna atm and dont know what to do.
Basically ive dropped my property a lot and all interest ive had, all the feedback is its too small, and it is its a small house. Ive been told that the rental market is very strong in my estate and i cant see me getting a sale for anything near what i want for it.
So im tempting by renting it out as we have found a house we would love to buy.
My main issue is, how much of a nightmare is it? The company im dealing with charge 18% monthly charge and that includes rent paying if tenants wont pay, and legal costs to take them to court and so on.
The one thing that pees me off is the extra stamp duty i would have to pay for my next house if i rent it out (another 5 grand), would it even be worth my while?
Also do all buy to let mortgages charge a small monthly fee and a couple of grand up front is this normal? (It would be a 75% LTV)
Basically ive dropped my property a lot and all interest ive had, all the feedback is its too small, and it is its a small house. Ive been told that the rental market is very strong in my estate and i cant see me getting a sale for anything near what i want for it.
So im tempting by renting it out as we have found a house we would love to buy.
My main issue is, how much of a nightmare is it? The company im dealing with charge 18% monthly charge and that includes rent paying if tenants wont pay, and legal costs to take them to court and so on.
The one thing that pees me off is the extra stamp duty i would have to pay for my next house if i rent it out (another 5 grand), would it even be worth my while?
Also do all buy to let mortgages charge a small monthly fee and a couple of grand up front is this normal? (It would be a 75% LTV)
I rent my own props out. you can get insurance to protect you from non payment.
yes you've tax to pay, gas service to sort each year and clearly you'll have repairs to do.
and a tnt isn't like you- they'll generally expect you can do things instantly !!
you need a reserve of cash for unexpected stuff. handy gas plumbers/builders unless you can do stuff like that yourself.
eg I had a porch to fully rebuild on one prop the other day-(and a few quid) that's 3 days out of my life I guess for no reward to me, but of course it is.
you might have to pop round every so often and sort a garden out- generally tnts are a bit slow at stuff like that.
end of the day- there are good people/bad people- just pick a good tenant. Don't forget you also now need to check their right to reside !.
18% is a lot of money for doing nowt in my view.
you'll get wear and tear on yr house- so expect a few costs bringing up to speed before you rent/sell in the future.
fundamentally prop goes up in value: in the great scheme of things you'll win.
yes you've tax to pay, gas service to sort each year and clearly you'll have repairs to do.
and a tnt isn't like you- they'll generally expect you can do things instantly !!
you need a reserve of cash for unexpected stuff. handy gas plumbers/builders unless you can do stuff like that yourself.
eg I had a porch to fully rebuild on one prop the other day-(and a few quid) that's 3 days out of my life I guess for no reward to me, but of course it is.
you might have to pop round every so often and sort a garden out- generally tnts are a bit slow at stuff like that.
end of the day- there are good people/bad people- just pick a good tenant. Don't forget you also now need to check their right to reside !.
18% is a lot of money for doing nowt in my view.
you'll get wear and tear on yr house- so expect a few costs bringing up to speed before you rent/sell in the future.
fundamentally prop goes up in value: in the great scheme of things you'll win.
Selling mine off, it’s a massive risk these days and if you work it out I think putting your money away for a while will get you some returns, maybe not as much if things go well with your rental but it could be a lot more if it goes tits up!
Just imaging a boiler failure, a leak and then non paying tenants who wreck your house. It’s very possible!
Just imaging a boiler failure, a leak and then non paying tenants who wreck your house. It’s very possible!
Gooose said:
Selling mine off, it’s a massive risk these days and if you work it out I think putting your money away for a while will get you some returns, maybe not as much if things go well with your rental but it could be a lot more if it goes tits up!
Just imaging a boiler failure, a leak and then non paying tenants who wreck your house. It’s very possible!
The package i was tempted on taking up with the estate agents covers non paying tenants and the legal costs to take them to court. Just imaging a boiler failure, a leak and then non paying tenants who wreck your house. It’s very possible!
My plan was to do an interest only mortgage for the buy to let
Petrolsmasher said:
Little Lofty said:
It can be worthwhile, just check out your tax position, as you can no longer claim relief for the mortgage.
What do you mean? Im in the 20% tax bracket in my job. https://www.themortgageworks.co.uk/support/tax-rel...
Petrolsmasher said:
mike74 said:
Alternatively you could just stop being greedy and/or delusional and sell if for what it's worth?
Excuse me? My property is on for 10% less than the equivalent houses in my estate and in a better decorative state so stfu. Your house will sell - it will be worth between £100 and £1m I would guess?
You just set the amount you want to start at and keep reducing it until it does sell.
if it was priced at £100 it would sell within 1 hr. if it was at £1m it will never sell so somewhere in the middle of those figures it will sell. The stumbling block is what you "think" its worth now.
Edited by superlightr on Tuesday 2nd July 17:15
Petrolsmasher said:
Little Lofty said:
It can be worthwhile, just check out your tax position, as you can no longer claim relief for the mortgage.
What do you mean? Im in the 20% tax bracket in my job. superlightr said:
Petrolsmasher said:
mike74 said:
Alternatively you could just stop being greedy and/or delusional and sell if for what it's worth?
Excuse me? My property is on for 10% less than the equivalent houses in my estate and in a better decorative state so stfu. Your house will sell - it will be worth between £100 and £1m I would guess?
You just set the amount you want to start at and keep reducing it until it does sell.
if it was priced at £100 it would sell within 1 hr. if it was at £1m it will never sell so somewhere in the middle of those figures it will sell. The stumbling block is what you "think" its worth now.
Edited by superlightr on Tuesday 2nd July 17:15
Petrolsmasher said:
Excuse me? My property is on for 10% less than the equivalent houses in my estate and in a better decorative state so stfu.
Congratulations on not being quite as greedy and/or delusional as the other vendors that are also failing miserably to sell their even more overpriced properties on your estate.Petrolsmasher said:
Post removed.
I know you don't understand the basics of how to market a property at a sensible and realistic price in order to achieve a successful sale, especially considering you're in need of a quick sale to fund your forward purchase of the house you 'love'. If I'm so wrong then post a Righmove link up here then you can really put me in my place and shut me up by proving how realistically priced your house is compared to others.
Petrolsmasher said:
mike74 said:
Petrolsmasher said:
Excuse me? My property is on for 10% less than the equivalent houses in my estate and in a better decorative state so stfu.
Congratulations on not being quite as greedy and/or delusional as the other vendors that are also failing miserably to sell their even more overpriced properties on your estate.Petrolsmasher said:
Post removed.
Even pricks have points though 
How's your price compared to actual sold prices (available here, for instance https://www.rightmove.co.uk/house-prices.html )
How many valuations did you get, and which one did you go with (agents often pitch a high valuation to get your business, then you find it doesn't sell and have to drop it down to the other valuations....)
If I was selling to you I wouldn't accept an offer until I had proof of funds and mortgage approval, which I suspect won't be available until you've actually let the place out (and thus made yourself homeless...) You could go through all this palaver and then find yourself outbid on your "dream property"...
Rather than the second guessing from know it all internet warriors I will answer the question raised by the OP instead.
If you have decent tenants then it isn't a pain at all.
The value of renting it will depend on a few things. E.g your property type - a 5 bed detached round my way doesn't command enough of a premium over a 2 bed semi for example. The rule of diminishing returns I guess. So if you have a small 2 bed semi or similar then you should have people queuing up.
To get a decent rental price and a hassle free let then you need to make sure you have the basics right. Kitchen and bathroom should be done, make sure central heating is not going to pack up (because paying for a new boiler is a PITA at the best of times). Make sure the house has nice neutral colours.
I wouldn't pay 18% fees to an estate agent. They are often lazy and won't do much for the money. Get insurance to cover yourself, get a contract off the internet for £30 and adjust it as you see fit and do decent due diligence on tenants. If you can find a married couple that haven't the desire to own then you ill have a long term tenant that will look after the place all being well.
Do a visual inspection once a year just to check and make sure you have a deposit assurance scheme and the rights certs before you let out.
Finally, if you need a mortgage make sure of your tax position, make sure the return is decent enough and also that it won't affect a mortgage application for your next home.
Personally, I would be trying to establish why yours isn't selling before going down this route any further.
All the best.
If you have decent tenants then it isn't a pain at all.
The value of renting it will depend on a few things. E.g your property type - a 5 bed detached round my way doesn't command enough of a premium over a 2 bed semi for example. The rule of diminishing returns I guess. So if you have a small 2 bed semi or similar then you should have people queuing up.
To get a decent rental price and a hassle free let then you need to make sure you have the basics right. Kitchen and bathroom should be done, make sure central heating is not going to pack up (because paying for a new boiler is a PITA at the best of times). Make sure the house has nice neutral colours.
I wouldn't pay 18% fees to an estate agent. They are often lazy and won't do much for the money. Get insurance to cover yourself, get a contract off the internet for £30 and adjust it as you see fit and do decent due diligence on tenants. If you can find a married couple that haven't the desire to own then you ill have a long term tenant that will look after the place all being well.
Do a visual inspection once a year just to check and make sure you have a deposit assurance scheme and the rights certs before you let out.
Finally, if you need a mortgage make sure of your tax position, make sure the return is decent enough and also that it won't affect a mortgage application for your next home.
Personally, I would be trying to establish why yours isn't selling before going down this route any further.
All the best.
mike74 said:
Congratulations on not being quite as greedy and/or delusional as the other vendors that are also failing miserably to sell their even more overpriced properties on your estate.
I think without knowing the location and price range of a property it’s not as easy to make the assumption. It’s def the case for certain types of properties in certain areas it can be a simple case of now is not the time - choice is cut your losses or hold onto it for a bit.As the EA reckons the rental markets good but sales are slow it’s probably more typically a btl property and people aren’t buying BTLs because of all the changes/an uncertainty that a change of government could be disastrous if you buy them now (ie never recouping even the tax).... it probably wont actually change the value negatively by the 20% you’re suggesting if it’s curtains for news BTLs - assuming you can afford to weather the storm.
I could be wrong aswell because I don’t know where the OPs place is or the regional factors at play.
Edited by Black_S3 on Tuesday 2nd July 18:26
We moved a couple of yrs ago.
Saw a house, went to the same agent to market ours. He came back with a "wait and see price" and a "sell it tomorrow price" about 5% between the two.
We chose the sell it tomorrow price, he did, and for a little bit extra. Everybody was happy and we were procedable.
Saw a house, went to the same agent to market ours. He came back with a "wait and see price" and a "sell it tomorrow price" about 5% between the two.
We chose the sell it tomorrow price, he did, and for a little bit extra. Everybody was happy and we were procedable.
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