Letting a property without using letting agent
Discussion
I have asked for a little adivce in the past on becoming a landlord and was grateful for the info PH provided
But I have a few more questions. and this is my first time being a landllord
In short I have a property that I am currently updating. I have a heating engineer sorted to sort a few things and do the landlord checks for gas, the same with a electrician. Landlord certificate's etc...
EPC I know I need to do before letting and know where I need to source this from.
I know about the Tenancy deposit protection via direct.gov I need to look at sorting
But I have a few people I know well who would possibly (coming in next week) who would like to rant the property. It's not 100% but looking like I can rent the property without using a agent "Possibly". But I have a letting agent I know I can use and would use locally if needed.
What other legal things to I need to do before going ahead without using a letting agent? thinking legal contracts ?
Having a google and seen Assured Shorthold Tenancy Agreement and Tenant Guarantor Form. Also what check's I would need to do before someone agreed to rent my property. thinking Financial.
Can anyone enlighten me to what I need to do and also point me in the right direction.
cheers
Matt
But I have a few more questions. and this is my first time being a landllord
In short I have a property that I am currently updating. I have a heating engineer sorted to sort a few things and do the landlord checks for gas, the same with a electrician. Landlord certificate's etc...
EPC I know I need to do before letting and know where I need to source this from.
I know about the Tenancy deposit protection via direct.gov I need to look at sorting
But I have a few people I know well who would possibly (coming in next week) who would like to rant the property. It's not 100% but looking like I can rent the property without using a agent "Possibly". But I have a letting agent I know I can use and would use locally if needed.
What other legal things to I need to do before going ahead without using a letting agent? thinking legal contracts ?
Having a google and seen Assured Shorthold Tenancy Agreement and Tenant Guarantor Form. Also what check's I would need to do before someone agreed to rent my property. thinking Financial.
Can anyone enlighten me to what I need to do and also point me in the right direction.
cheers
Matt
Probably need to look at referencing, let insurance etc etc.
Have a look on here :
http://www.landlords.org.uk/
Should hopefully give you some pointers.
Have a look on here :
http://www.landlords.org.uk/
Should hopefully give you some pointers.
If there is a mortgage on the property, then you will need the mortgage company's approval to let, and building, contents insurance (Jelf Insurance Brokers)
Now a requirement to both have a carbon monoxide detector for each appliance gas fire, cooker boiler etc., and a smoke, fire alarm.
You do not say whether you are letting furnished or unfurnished, if the former then bed, sofa etc. should be labelled fire retardant.
Surprising that there is no legal requirements for electrics and electrical white goods, although in both there is always a "Duty of Care" that will empower responsibility on the landlord for health, safety etc. For electrical white goods legislation just requires the inspection by a responsible person>
As a landlord I let my properties unfurnished, that is apart from carpets, curtains, lampshades, cooker and occasionally a washing machine. I do so since the few items left in the property, means the fewer items I am held responsible for both there repair, health & safety etc..
Gas safety certificate should cover every gas appliance and boiler.
References should be obtained from any previous landlords, employers, friends etc., together with previous residential addresses.
A good monetary Deposit should be obtained, between 6-8 weeks of the rental amount.
Then once references are found to be OK, prepare a sound Tenancy Agreement, what the tenant can and can not do, ie painting the ceilings orange, sub letting, drilling walls, pets etc. etc.then arrange for a Ingoing Inventory to be carried out, the same should contain photographic evidence of internal rooms, garden, garage etc.
PS. Join the South West Landlords Association, for £40 per annum you will receive both legal, health & safety information, but free tenancy agreements and other rental documents.
Now a requirement to both have a carbon monoxide detector for each appliance gas fire, cooker boiler etc., and a smoke, fire alarm.
You do not say whether you are letting furnished or unfurnished, if the former then bed, sofa etc. should be labelled fire retardant.
Surprising that there is no legal requirements for electrics and electrical white goods, although in both there is always a "Duty of Care" that will empower responsibility on the landlord for health, safety etc. For electrical white goods legislation just requires the inspection by a responsible person>
As a landlord I let my properties unfurnished, that is apart from carpets, curtains, lampshades, cooker and occasionally a washing machine. I do so since the few items left in the property, means the fewer items I am held responsible for both there repair, health & safety etc..
Gas safety certificate should cover every gas appliance and boiler.
References should be obtained from any previous landlords, employers, friends etc., together with previous residential addresses.
A good monetary Deposit should be obtained, between 6-8 weeks of the rental amount.
Then once references are found to be OK, prepare a sound Tenancy Agreement, what the tenant can and can not do, ie painting the ceilings orange, sub letting, drilling walls, pets etc. etc.then arrange for a Ingoing Inventory to be carried out, the same should contain photographic evidence of internal rooms, garden, garage etc.
PS. Join the South West Landlords Association, for £40 per annum you will receive both legal, health & safety information, but free tenancy agreements and other rental documents.
Edited by Wings on Friday 8th May 15:18
Wings said:
If there is a mortgage on the property, then you will need the mortgage company's approval to let, and building, contents insurance (Jelf Insurance Brokers)
Now a requirement to both have a carbon monoxide detector for each appliance gas fire, cooker boiler etc., and a smoke, fire alarm.
You do not say whether you are letting furnished or unfurnished, if the former then bed, sofa etc. should be labelled fire retardant.
Surprising that there is no legal requirements for electrics and electrical white goods, although in both there is always a "Duty of Care" that will empower responsibility on the landlord for health, safety etc. For electrical white goods legislation just requires the inspection by a responsible person>
As a landlord I let my properties unfurnished, that is apart from carpets, curtains, lampshades, cooker and occasionally a washing machine. I do so since the few items left in the property, means the fewer items I am held responsible for both there repair, health & safety etc..
Gas safety certificate should cover every gas appliance and boiler.
References should be obtained from any previous landlords, employers, friends etc., together with previous residential addresses.
A good monetary Deposit should be obtained, between 6-8 weeks of the rental amount.
Then once references are found to be OK, prepare a sound Tenancy Agreement, what the tenant can and can not do, ie painting the ceilings orange, sub letting, drilling walls, pets etc. etc.then arrange for a Ingoing Inventory to be carried out, the same should contain photographic evidence of internal rooms, garden, garage etc.
PS. Join the South West Landlords Association, for £40 per annum you will receive both legal, health & safety information, but free tenancy agreements and other rental documents.
Cheers for the info Wings. There is no mortgage on the property and we are letting it unfurnished and I have a heating engineer sorting out a few things and tickets for gas and heating. Electrician sorting out anything we need with regards to carbon monoxide detector and heat detector. Now a requirement to both have a carbon monoxide detector for each appliance gas fire, cooker boiler etc., and a smoke, fire alarm.
You do not say whether you are letting furnished or unfurnished, if the former then bed, sofa etc. should be labelled fire retardant.
Surprising that there is no legal requirements for electrics and electrical white goods, although in both there is always a "Duty of Care" that will empower responsibility on the landlord for health, safety etc. For electrical white goods legislation just requires the inspection by a responsible person>
As a landlord I let my properties unfurnished, that is apart from carpets, curtains, lampshades, cooker and occasionally a washing machine. I do so since the few items left in the property, means the fewer items I am held responsible for both there repair, health & safety etc..
Gas safety certificate should cover every gas appliance and boiler.
References should be obtained from any previous landlords, employers, friends etc., together with previous residential addresses.
A good monetary Deposit should be obtained, between 6-8 weeks of the rental amount.
Then once references are found to be OK, prepare a sound Tenancy Agreement, what the tenant can and can not do, ie painting the ceilings orange, sub letting, drilling walls, pets etc. etc.then arrange for a Ingoing Inventory to be carried out, the same should contain photographic evidence of internal rooms, garden, garage etc.
PS. Join the South West Landlords Association, for £40 per annum you will receive both legal, health & safety information, but free tenancy agreements and other rental documents.
Edited by Wings on Friday 8th May 15:18
thanks for the info on references
Just need to find out a little with regards to what needs to be put into the contract before letting one anyone (if we do this ourselves)
cheers so far
I am a member of https://www.rla.org.uk/ been very good for all the required help and downloads of documents etc.
BGARK said:
I am a member of https://www.rla.org.uk/ been very good for all the required help and downloads of documents etc.
thanks for thatSeems there are a good few associations out there to join. next question which one is best for me. A little light reading is needed this week
RemaL said:
thanks for that
Seems there are a good few associations out there to join. next question which one is best for me. A little light reading is needed this week
so wanting to save a few quid by DIY with renting out your property worth a few hundreds of thousands of pounds with no experience or knowledge of letting. Seems there are a good few associations out there to join. next question which one is best for me. A little light reading is needed this week
What could possibly go wrong on your first letting?
As a letting agent - what is your thinking behind a DIY approach to not using a Letting agent? Serious.
Both Wings and I are Letting Agents and he has kindly giving you some good pointers.
Edited by superlightr on Tuesday 12th May 11:26
I use an agent to vet new tenants do credit checks etc... I don't pay them to manage it month to month. I did once but found it wasn't worthwhile I still approved any repairs and very often got a cheaper quote myself so why would I pay an agent 10% plus spend more using their people for repairs and call outs?
Of course if you don't want to be hands on or bothered by tenants it's probably worth the monthly fee. Also if you had bad tenants it must be very worthwhile to take away the headaches hence me using them to find me good tenants who have jobs.
Of course if you don't want to be hands on or bothered by tenants it's probably worth the monthly fee. Also if you had bad tenants it must be very worthwhile to take away the headaches hence me using them to find me good tenants who have jobs.
Easily done yourself.
I let and manage three properties in central London (outside of work). It really requires minimal effort. There are masses of resources available to you regarding the legal requirements and procedures etc, list them and comply.
Previously I've used letting agents, the only value they add is finding a tenant. The market is changing though (in London anyway). My last set of tenants were found using online letting portals. Organised a few open house viewings after work, met and spoke to all the prospective tenants, answered questions, showed them things that would be rectified and those that would not. I achieved substantially more per week that the previous letting agent had managed. The prospective tenants like it as they don't have to pay the ludicrous fees agents charge for contracts/renewals etc.
With regard to credit checking you can do this yourself. Also bear in mind that you can reference and credit check people until you're blue in the face, they could still end up not paying you.
Ultimately you're running a micro business, if you're happy to put a small amount of effort in (which some investments require) you shouldn't find it to much of a hassle. Proximity to your BTL is also a factor worth considering.
P
I let and manage three properties in central London (outside of work). It really requires minimal effort. There are masses of resources available to you regarding the legal requirements and procedures etc, list them and comply.
Previously I've used letting agents, the only value they add is finding a tenant. The market is changing though (in London anyway). My last set of tenants were found using online letting portals. Organised a few open house viewings after work, met and spoke to all the prospective tenants, answered questions, showed them things that would be rectified and those that would not. I achieved substantially more per week that the previous letting agent had managed. The prospective tenants like it as they don't have to pay the ludicrous fees agents charge for contracts/renewals etc.
With regard to credit checking you can do this yourself. Also bear in mind that you can reference and credit check people until you're blue in the face, they could still end up not paying you.
Ultimately you're running a micro business, if you're happy to put a small amount of effort in (which some investments require) you shouldn't find it to much of a hassle. Proximity to your BTL is also a factor worth considering.
P
superlightr said:
RemaL said:
thanks for that
As a letting agent - what is your thinking behind a DIY approach to not using a Letting agent? Serious.
Both Wings and I are Letting Agents and he has kindly giving you some good pointers.
And I have been very grateful for the advice. As a letting agent - what is your thinking behind a DIY approach to not using a Letting agent? Serious.
Both Wings and I are Letting Agents and he has kindly giving you some good pointers.
Edited by superlightr on Tuesday 12th May 11:26
Main reason for the DIY approach was not knowing who would want to rent our property. But at the moment we have 2 couples who want to rent the property. Friends of friends sort of. And since I started asking on here about what I need to do I have learned quite a lot.
It's not taken me a huge amount of time in just under a week to find out most of the basics with renting from the legal side to whats needed etc.. I would not say for a second I know what letting agents know or would ever get the experience they have.
We have joined the SWLA who have provided me with lots of info and thanks to the PH'er who suggested them
We all have to start out somewhere, so a letting agent is not required unless you dont want the hassle, and at times it is a hassle.
First thing I would do is join one of the major landlord associations, even if it's only for a year, I'm registered with the RLA so can only speak about what they offer but every form is provided, including the AST's so your not going to trip up on the paperwork.
You have to get it in your head that the law is against the landlord, and will protect the tenant so you have to cover your back as much as possible. Research FULLY the ins and outs of evicting a tenant, its no good at the time of deciding as you may have inadvertently already fecked up the process at the start of tenancy. There is a lot to learn so I won't even begin to detail it here.
Deposit protection is another huge aspect of going at it alone. Feck that up and you will find yourself quite badly out of pocket and funding some tenant's next all inclusive in Mallorca.
Once you have the knowledge its an absolute doddle to actually manage your own properties and I find tenants appreciate being able to contact the landlord direct rather than going through a third party, not to mention huge cost savings.
Feel free to PM if you have any specific questions and I will do my best to answer them
First thing I would do is join one of the major landlord associations, even if it's only for a year, I'm registered with the RLA so can only speak about what they offer but every form is provided, including the AST's so your not going to trip up on the paperwork.
You have to get it in your head that the law is against the landlord, and will protect the tenant so you have to cover your back as much as possible. Research FULLY the ins and outs of evicting a tenant, its no good at the time of deciding as you may have inadvertently already fecked up the process at the start of tenancy. There is a lot to learn so I won't even begin to detail it here.
Deposit protection is another huge aspect of going at it alone. Feck that up and you will find yourself quite badly out of pocket and funding some tenant's next all inclusive in Mallorca.
Once you have the knowledge its an absolute doddle to actually manage your own properties and I find tenants appreciate being able to contact the landlord direct rather than going through a third party, not to mention huge cost savings.
Feel free to PM if you have any specific questions and I will do my best to answer them
Edited by dazwalsh on Thursday 14th May 22:04
poocherama said:
The market is changing though (in London anyway). My last set of tenants were found using online letting portals.
Can I ask which letting portals people are using? I'm about to pull the trigger on a new buy2let and am going to manage it myself. I have done this in the past but my tenants were found through contacts and word of mouth which wont work in this instance.voicey said:
Can I ask which letting portals people are using? I'm about to pull the trigger on a new buy2let and am going to manage it myself. I have done this in the past but my tenants were found through contacts and word of mouth which wont work in this instance.
Local news papers has worked best for us.I think it depends on where you are in the country as to the best way of getting tenants.
We have friends in Yorkshire who have a portfolio of around 10 houses. They have found all their tenants via advertising in the local rag and not had any major problems.
Here in Buckinghamshire, the local paper only succeeded us in finding tenants who would not be able to get a property through a standard letting agent, i.e. they would fail the referencing. We were going to let our flat to a young couple with a baby, but none of their parents were prepared to guarantee the rent. If your own parents can't trust you, then who will?
Using a decent letting agent means that they make sure you comply with all the legislation (gas safety, deposit protection etc.) and they will obtain a credit check and references on the tenant. I'd also recommend taking out rent and legal protection insurance. We have recently had to evict a tenant who was several thousand pounds in arrears, and the insurance covered most of the rent shortfall as well as all the legal costs. The policy was organised through Letrisks in Eastleigh and was worth every penny of the £200 or so it cost.
We have friends in Yorkshire who have a portfolio of around 10 houses. They have found all their tenants via advertising in the local rag and not had any major problems.
Here in Buckinghamshire, the local paper only succeeded us in finding tenants who would not be able to get a property through a standard letting agent, i.e. they would fail the referencing. We were going to let our flat to a young couple with a baby, but none of their parents were prepared to guarantee the rent. If your own parents can't trust you, then who will?
Using a decent letting agent means that they make sure you comply with all the legislation (gas safety, deposit protection etc.) and they will obtain a credit check and references on the tenant. I'd also recommend taking out rent and legal protection insurance. We have recently had to evict a tenant who was several thousand pounds in arrears, and the insurance covered most of the rent shortfall as well as all the legal costs. The policy was organised through Letrisks in Eastleigh and was worth every penny of the £200 or so it cost.
just to let you know as a letting agency of over 40 years we can normally offer new landlord a free legal and rent protection policy within our full management service of 10% +vat no hidden fees - universal costs are extra ie gas/elec/epc/inventory.
Saves a lot of work for the owners by using a reputable agency. NARLs /safe agent/ omnibus members. You can DIY but you must fully understand what you are doing legally and would recommend you are an experienced landlord.
You are looking at a service from an agency not buying a product so being the cheapest in not always how to judge - look at what service you will get and the confidence you feel in their agency. - your property is worth many hundreds or thousands of pounds saving a few £ each month can be a false economy.
ps we look after about 350 properties a year - thats 350x years issues we deal with EVERY year as well as hearing all the stories under the sun from tenants and prospective tenants - hence why we have the experience to make sure a letting goes well and is successful. If its successful for our landlords its successful for us. If we dont let the property we dont get paid. (that was my reply when asked about when I drive a 911tt are we charging too much !)
Saves a lot of work for the owners by using a reputable agency. NARLs /safe agent/ omnibus members. You can DIY but you must fully understand what you are doing legally and would recommend you are an experienced landlord.
You are looking at a service from an agency not buying a product so being the cheapest in not always how to judge - look at what service you will get and the confidence you feel in their agency. - your property is worth many hundreds or thousands of pounds saving a few £ each month can be a false economy.
ps we look after about 350 properties a year - thats 350x years issues we deal with EVERY year as well as hearing all the stories under the sun from tenants and prospective tenants - hence why we have the experience to make sure a letting goes well and is successful. If its successful for our landlords its successful for us. If we dont let the property we dont get paid. (that was my reply when asked about when I drive a 911tt are we charging too much !)
Edited by superlightr on Thursday 28th May 16:30
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