Updating post from Reddit.
Hi all,
My wife and I have recently inherited a house and wish to rent it out. We live and work in London, but the house is in Scotland. Based on this we were thinking of having an estate agent manage the property as we are 7 hours away. Does anyone have any insight on how this should work, from what I have seen online they take a large percentage the first month and then a smaller percentage every month after which seems reasonable but any additional tips would be helpful. We are also wondering whether to rent the house furnished as we don't need the couches, beds, mattresses,washing machine, dishwasher, fridge etc. is there any advantage to one over the other. With regards to tax, I assume as we are a couple, it is wisest to declare on the person with the lowest wage or ar e there any tax allowances for landlords? Anyway just looking for any input or advice for renting out a house whilst living too far away to manage ourself.
Thanks
Managing a rental at distance is not easy. IMHO I would use a rental company and suck up the 10% they would charge you monthly. Do not leave any furniture or appliances. As stated they would be your responsibility if they go wrong. It would also be advisable to cultivate a local handyman to sort out any issues rather than pay the agents exorbitant add ons.
I would agree, especially as the house came free. First thing to do is find the best local agent and get them to appraise the house for you. If it’s inherited from an older person it’s likely to need work to bring it up to standard for the rental market so you get the right kind of tenant. Plus they can advise on all the regulatory requirements etc.
No to open rent and find a good local agent. The small amount they charge is worth the hassle for being 7 hours away.
Second this. Tenants can be problematic when they live local let alone 7 hours away
Personally on the day to day side of it:
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Definitely on the separate bank account.
What about things like garden furniture that we ourselves do not want. Should we leave it or try to sell it. The house has some basic bedframes and mattresses, small table for 4 people with chairs again we would have to sell/dispose of if it's not recommended to keep.
Also what about the oven and hob - I assume they are normally left in the property?
My advice would be to not rent the house furnished. It’s more complicated and attracts a different type of tenant. I’d use a letting agency to manage everything, at least until you know the ropes. They usually charge 10-12% of rental as their fee
Thanks all for input, will get some agents round next week for an idea of rent value and decide from there Which route to take.
Look up letting agents in the area and pick one with good reviews. That 10% or so you pay will be well worth it compared to the time and cost of taking even one flight up there yourself. Take the agent’s advice about whether to let furnished or unfurnished, but unless there is a strong demand for furnished properties only in that area it will be much easier on you to go with unfurnished. Probably cheaper too, there tends not to be much difference between the rental charged for furnished properties versus unfinished. In terms of tax, if the property is in both your names then the income will be deemed to be split 50-50 and each of you will have to include that 50% on your tax returns (minus any deductible expenses). If one of you is the sole owner of the property, then that person is the one who gets taxed on all of it.
If you don't mind doing a little yourself might be worth looking at openrent. They'll insure the tenancy against non payment, do the rent collection and insure you for three emergencies a year for about £500. Advertising and tenancy creation is about £60 Then they can optionally arrange your gas and leccy checks, check ins, viewings, credit checks etc a la carte.
Quite nice as it works out a lot cheaper than an agent and you can pick and choose what they do for you.