Updating post from Reddit.
Hi, I’m moving abroad and will keep my house and rent it out. I’ve contacted a few estate agents for tenant-find service only, and many of them are pushing towards a managed service or rent collection. I’ve refused as I don’t see much value in that for the price (about 10% + Vat), maybe I’m missing something? They keep saying it’s good to stay up to date with the renters bill and changing regulation…
for the tenant find service, most are charging 100% of first months rent, another 72% and another just £700 (from a reputable nationwide agency). Rent should be around £2500. The low fees of one agency makes me doubt if their service/quality, but I don’t see any difference as it’ll still be advertised in the same platforms as the rest (and includes same services: referencing, credit checks etcccc). Seems like a no brainer to go for the cheapest one, but is there anything i might be missing?
Thanks for your help!
I live abroad and rent out a house in the UK. Did so independently for 5 years without problems, but recruited the tenants myself. Now the house is managed by a local agent, and while they can be a pain to deal with at times, on balance I wouldn't go back to letting independently because:
- A managing agent will be more invested in signing optimum tenant(s), as they will have to deal with any future issues that arise.
- 6 monthly inspections give you insight into the condition of the property and allow you to tackle tenant/repairs issues before they escalate.
- Tenants may a different attitude to a landlord living abroad vs a local estate agent.
- Legislation changes regularly, as has been pointed out. Failure to keep up with compliance can mean fines, and issues in recovering possession of the house from the tenant.
- The agent will be able to arrange repairs much easier than a landlord living overseas.
- If a tenant decides to stop paying the rent, either because they can't or they won't, it will be a long and expensive process to resolve.
Fair point. Securing an optimum tenant is key. Comprehensive referencing, and strong checks should help minimise risks. Rent guarantee also helps.
First time landlord, living abroad, please get it managed by a reputable agent and don’t do this yourself.
Any agent can find you a tenant, even the really cheap ones. It’s when things go wrong that they prove their worth and value to you.
It might be a super smooth tenancy and you might feel you’ve paid them for nothing. Or it might be a nightmare and they are worth every penny.
NRL sorted?
NRL isn’t straightforward when doing the self-assessment? Anything j should do beforehand?
No, not hard. Just a necessity for a non-resident landlords to register properly to receive their rent gross each month.
If you don’t register, either the tenant (direct payment to you) or agent (when they collect rent) must withhold basic tax rate i.e. 20% and pass to HMRC quarterly.
I’m surprised none of the agents have talked you through it as I assume you told them you’d be abroad.
Who will the tenants be contacting in the event of an issue or an emergency? Will you be available 24/7 to deal with issues whenever they arise?
The benefit of an agent is that they can be there 24/7 so you don't have to be. Plus they will do all the advertising, viewings, paperwork, references etc. Even though I live a walkable distance from a property I rent, I still prefer to use an agent to do everything so I don't have to. I'm essentially paying to offload much of the hassle.
If they aren’t managing it who is? You from abroad?
What are they managing though?
Need a plumber, phone a plumber, need a decorator…..
Managed fees a a rip off and are really not needed. All they do is send overpriced trades and send you the bill.
But you check if plumber, decorator etc… have done a decent job don’t you. Who does this for him if he’s not in the country? Who checks on the state of the property when the tenants move out?
Agree that very often it’s not required but if you are not in the UK.
I’ve lived here long enough to know a list of trusted tradespeople. I know their work, and I trust them.
You have video and photos..You also speak to the tenants?
I’m not saying there might not be fuck ups, but you will quickly establish a list of trades who you trust and who appreciate the work.
I agree. An Agent does nothing you cannot do for yourself but with the added cost of acting as intermediary between you and your tenant.
Agents make money on both ends and do very little. Like lawyers, every time they contact you or act for you they will levy a fee or charge. If they call out a plumber you can bet the costs will be loaded for them and their plumber (you can find one for much less on the open market).
Honestly, your money, do what gives you peace of mind.
Oh and the 6 month visits, you can bet they’re outsourced to the work experience kid who is given a ticklist to check off - bet you didn’t know you had a study or garden shed when you get the list back.
Invest your time in vetting tenants properly. Trust your instincts and get good LL insurance.
I’m still living in my property, but I’m moving abroad. I’m nationalised UK citizens
When you’re not here who is managing the property?
Is fall one of the trade people I know to address the issue? Otherwise I have a few trusted people in the area in case of emergencies. Not sure if this is a sustainable way, but I also don’t know what’s the added value of agents
I've managed a portfolio (8+ properties including 2 HMOs) from Asia for over 5 years. No problems or hassle
You have a power team (plumber, electrician, handyman) who know the properties. Any problems from the tenants go straight to the relevant person to fix, and just pay the invoice
If you insist on doing this it will be hard to manage yourself. A tenant find (only) service is generally worse than doing it yourself. Agents make their money from managing reliable tenants, and you will likely be the last on their pecking order for choice of tenant. They would rather place the good prospects in properties they will manage.
And even ignoring the above, you always want to meet and choose tenants yourself even with a managed service.
You should strongly consider selling it..... unless there is a VERY good reason to want to become a landlord right now.
If everything goes smoothly, it will be fine, provided you follow NRLA guidance and are able to meet all the regulatory requirements. However, you may find it challenging to manage from a distance.
I do prefer DIY landlords, but new landlords certainly need an agent for their first few tenancies to understand how things work. Especially if you're in another country!
It could be a costly mistake not getting a professional, if you don't understand rentals yet.
Im not abroad but self manage. Im not great at diy but have a phone with decent handymen etc .
If you are still currently in the country I can reccomend open rent. Its alot cheaper. .. About 60 quid I think last I used it
Advertises - you take pictures / do the description etc they list in rightmove etc . People apply- you can organise viewings with who you choose .
Go with your gut on feeling to rule out anyone that doesn't fit
Openrent I believe have a load of bolt on services if you require them ( which you may if you are abroad)
Their platform sets up the tennacys etc
Where is the property located?
What address will you be providing for the serving of notices?
Had a family near us that were in the military, so they let out their house while abroad. Came home after 3 years, and the tenants had removed a supporting wall, leaving their home of risk of collapse. Then, they used an agency as they did 6 monthly checks. No further problems. My next-door neighbour rents out her dad's house, and now he has passed away. The agency deals with all the problems. She just gets a BACs.
Going to be renting my house, too as first time landlord whilst abroad and I'm going with a fully managed agent.
I'm also getting rent protection through GoodLord to reduce my risk.
For a fully managed service, the monthly fee is 15% of the rent. And to find tenants, it's 15% of the first months rent.
This post adds no value to the users of this subreddit, because it is spam.
Where is the property? This will determine largely the demographic of your audience and what you should do.
Based in camberley, how would the demographics impact my decision?
If you live in a sociodemographically poorer area chances are higher that you get deadbeat tenants. If you’re in Knightsbridge or Belgravia conversely…
Don’t use a corporate agent whatever you do. Independent small firm will look after you much better. Charges more reasonable. You don’t really need the stress of navigating 180 pieces of legislation, just pay them to manage it. One mistake can cost you thousands.
As a life long renter I have somehow managed to rent directly from the landlord, more recently I have replied to ads and done referencing etc through an agency but they were only involved in that part and have then been renting directly from the landlord.
Last year there was a serious leak from the bathroom of the flat above mine, it had been let to a young man who was running it as an airbnb. The landlord of the flat above was aware of the situation as were the agency he used to manage the flat. I reported the water ingress the moment I saw it, it then took 3 months for the agency to send a guy round after the plaster on my ceiling cracked and water was dripping from the ceiling. The handyman arrived, touched the detached plaster and the entire ceiling collapsed, it then took a further 7 weeks for the leak to be badly repaired and a further 4 months before the ceiling was repaired.
Don't get me wrong the owner of the flat is a grade A cnut (he had the gaul to complain that his tenants airbnb guest was put out by him having to repair the leak from his sodding shower), but the estate agent just made everything take so oooo much longer and it ended up being so much more expensive than it needed to me.
As a tenant I would say, just use the agent for getting the tenant in and then work with the tenant, your property will be better cared for and you won't be losing a percentage of the rent income to an estate agent, who are let's face it the UBend of the PRS
I know it eats into profits but I would strongly advise having a company manage your property unless you have a very good friend or family member who intends to check on the property and deal with the tenants.
I think it's seriously important to consider your "why" for renting out your property. If it's for profit then I can see why you may be reluctant to pay for management but if you're moving countries then I would imagine you are renting it out so that you can keep the property for when you may decide to come home or to keep a hold on a property in the UK market. If it's for those reasons then you want your property to be well taken care of for you and the additional expense for management may be worth it for your overall goals.
Some management companies offer rent guarantee schemes, I'm not advising it but just saying to check it out and see if it benefits you to have a consistent rental income if you still have a mortgage or depend on the rent. I've watched enough "can't pay we'll take it away" to know that being a landlord can be tough if you just make one mistake with a nightmare tenant and the more safety nets around you, the better.
With the changes I would use a property manager. I wouldn’t go with the estate agent as they are really set up just to find tenants and not to manage a tenancy. I use LandlordLab.co.uk - just a separate service that is manage only. They have a few landlords based abroad so get the hands off approach. I used to self manage but risks too high now. If you are okay to do viewings then they also can help advise you on doing it yourself if you sign up. Saved a lot on the rent collection where I wasn’t getting value and the prop management has been good. Good luck!