Tell me all about renting a property out

[Vixpy1]

So, going to be renting our house out long term. I have however never done this before, so know nothing.

Can someone please fill me in on the agencys, what they do, how much they cost, whether its worth using one.

Also, for tax, can i offset the costs of running the property against the rent ?

Cheers,

Charlie

[pimpin gimp]

Nothing to add, but I'll be watching this closely, we're thinking of doing exactly the same - saves me making my own topic!

[phib]

Charlie here we go :

Yes I would use and agency and they usually come in with three offers :

1. Arrange the deal only 8% of monthly rental.

2. Arrange the deal and colect the rent 10ish%

3. Arrange the deal, collect the rent and manage the maintainence of the property 15%

All ours are on the 2nd option and we sort out any issues ( local handyman) but dont have the issue of collecting money.

You will need buildings insurance only (tennents will do contants)

You should also take out legal cover that covers evicting tennents leagl issues etc I think ours was circa £100 PA.

You need to do an inventory when you rent it out and for gods sake do it empty not fully furnished our your tennents will call every time they break a spoon !!!#

Basically thats it but any more questions ask away

Phib

[whirligig]

Good advice above! We have just sold a flat we rented out for 10 years in Edinburgh and went down the fully managed route at 13.5%

On the whole quite a painless affair apart from one lot of tenants who were causing misery to one of the other neighbours and ended up being evicted at considerable expense so worth taking insurance out against that. Also, the less furniture the better - ours was more or less fully furnished but no electricals apart from white goods in kitchen. The agency inspected the place every six months and let us know what was what, they also did the inventory in the first place.

You can offset lots of things against tax (we let an accountant sort out that side of things).

All the best with it!

[HiAsAKite]

Yup - we rent a property out -

Above all- remember to check, and double check everything yourself, do not 'trust' that the agents have done it, my experience is that the will do the bare minimum they can get away with (including leaving you legally up sh!tcreak and exposed) -

-I'm sure there are a few 'good ones' out there who don't, and deliver good service to their customers, but until you know for sure, and they've proved themselves to you - make sure everything is done correctly and do not 'trust them' to do it without checking..

Happy to talk about it to you offline..

[Wings]

I have been a landlord now for over 15 years, and in those early days used Letting Agents, but due to some very bad financial charges and experiences, decided to take over the management myself.

There is however some advantages in using agents, possibly the main one being that the letting transaction is kept on a business footing.

I always let my properties unfurnished, even where possible without any white goods, washing machine, cooker etc., the reason being apart from being responsible for fire risk on furnishings etc., the more goods left in the property, the more goods the landlord is responsible for repairing if they should go wrong.

If any mortgage on the property, then if standard residential mortgage, then the mortgage company needs to be informed that the property is being rented out, also the building insurance needs to cover residential renting/letting.

Prior to showing potential tenants around, the landlord will need to acquire for the property an Energy Performance Certificate cost £50, and an Annual Gas Safety Certificate for all gas appliances, boilers in the property, cost again £50.

There are no required Electrical Certificates for a standard one up residential property, although a competent person should carry out a check of any white goods etc. As for sockets, lighting and main consumer unit, it is advisable to just ask a competent electrician just to quickly check over these items.

Once you find a tenant/s then one needs to carry out checks, obtain a Deed of Guarantee , then draw up a suitable Assured Shorthold Tenancy Agreement, which I usually do for a 6 month fixed term period. Then together with the tenant/s carry out a full inventory of the property, listing any furniture, effects, white goods, and the condition of the same i.e.” carpets fair with two cigarette burn marks near patio door entrance.”

Inform Local Council's Rating Office, Water, Gas and Electricity Company etc. etc.

From April 2007 all Deposits have to be protected/registered under the Housing Act 2004, there are three types of Tenancy Deposit Protection Schemes, I myself use http://www.mydeposits.co.uk/ , which allows me to physically retain the Deposit/monies, thereby having more control over the refund of the same to the tenant/s at the end of the tenancy. As to how much Deposit you ask the tenant for, I tend to ask for the equivalent of 6 weeks rent.

Possibly one of the best postings I have ever read on renting out a property, was made recently by Jamiefromconcord at this link http://www.pistonheads.com/gassing/topic.asp?h=0&a...

[Nollub]

Not sure exactly where your house is, presumably in Surrey. I have two properties let out and I use an agent who has been acting for me for 25 years now. Take a look at APW or call them (their original office is in Weybridge, 01932 857300) but they do have other offices. They charge 13% for finding tenants, checking references and full management and I have no real complaints about their service or I would not have stayed with them for so long.