Updating post from Reddit.
Hello there,
So! My mother owns a flat on the leasehold, bequeathed to her from her mother's passing and we want to let it out. We went with an agency for Full Management last time which was unnecessary as she lives in the same block of flats. I'm going to register as the landlord and save her the trouble, time & money. We went to go with another agency under Let Only but the more I read, I think what's the point? We'll be paying them more than 1k for set-up fees, write a contract, advertise and perform viewings. I live in the property myself at the moment so I can perform the viewings.
I'm more stressed at the moment dealing with the agency and it's led me to believe, amongst my research that I could do all this myself. I live in Wales it's worth nothing. My plan is to use Open Rent. The EIRC is a success, EPC is checked, no gas, smoke alarms are fine, will see about Landlord Insurance. I'm registering for a landlord license through Rent Smart Wales at the moment and am eager to learn more about this business and legislature (I'm aware of the new rental bill - the agency hasn't told me about this).
I'm thinking of using Open Rent to advertise the property and do the viewings myself (I've read about holding deposits which I will definitely not be using) Am I correct in thinking I can use a Deposit Scheme of my choice or must it go through Open Rent? With terms of contracts, ASTs are not legal in Wales now, only Long Term, I'm thinking I can use a draft found on the NRLA or Open Rent, same with inventory too.
Is it really as simple as simple going through Open Rent, performing the proper credit checks, writing a legal contract and going through a Govt. approved Deposit Scheme? It feels like I can do all this myself to avoid the agency, an unnecessary middle-man that just wants your money and doesn't about your tenants nor property. I just know if they found a good tenant (which is all that matters) sooner down the line I'd want to split from them. I just don't think, especially in this day of age, that they are really necessary. I live in the same city and have a good handy-man and it's only a studio flat so I'm thinking it's a no-brainer really.
Am I missing something here? I'm ready to commit to this, I'm quite enjoying learning the legal aspects of it all, it's a new venture for me being stuck in hospitality forever lol. I just need to learn about tax-returns, self-assessment form etc. My one concern is landlord relations, my mother lives in the same block of flats as noted, particularly right below the property in question, how best can I relate this to the possible-tenant? I don't want to base the tenancy on lies, but also, it might not be the best for relations as the home-owner lives downstairs but I will be dealing with everything instead.
Thank you everyone!
Another vote for openrent 👍🏽
Unless I lived a long way away or had multiple rental properties, I wouldn't bother with the cost or hassle of instructing an agent
I tend to travel a bit but not any time soon. Like you said, for one very small property, I see no reason not to fully manage it. Thank you for the reply! And indeed, most hassle thus far is emailing with the agent, with Open Rent, I can do everything in my own time, no middle-man business
I manage a couple of properties for my parents. I use openrent for this.
I use the TDS and lease provided by openrent. It costs nothing, and ticks the legal boxes. It’s all pretty easy.
I’ve found conducting the viewings and picking the right tenants the hardest part, but it gets easier.
Would you have any examples of screening questions for viewings? I would want to come off as professional as possible, don't want to appear as someone who can be taken advantage of, especially as I'm new to this. Thank you for replying! I have quite a good instinct so should be fine, feels better too screening tenants instead of the agency
I used the standard openrent ones for this. It does a great job screening prospective tenants for you.
The basics are:
When are you looking to move? Pets? Total household income Number of people living in the household. Student? Employment?
Those are the main ones.
Great, I was on similar lines. Thank you v much! I just needed some assurance really
I have used openrent to find tenants on several,occasions and always had a good result. I do my own checks and references and I use Mydeposits for the deposit as I get a discount through the NLA. I also use NLA tenancy agreements.
Thank you for the response. NRLA seems good, I'm thinking of signing up myself
I use and like Openrent. It's really good and they have a management option too (well more like arranging engineers and stuff when things break).
Watch out for the Openrent contracts putting a 6 month break clause in as standard
Noted, thanks for that. Anything else I should watch out for, if you may?
Nah it's all good.
They do credit checks - make sure to do them and use them to vet people.
They can also collect rent. It's not rent insurance but I find it handy. People are more likely to pay when they have to pay a company Vs bank transfer to a landlord
Good to know. I think with agencies too, I may be wrong, but people may be more able to trust them more as they are Ltd., professional and branded with a logo. But as I'm researching more, I think more and more people are ditching them. With regards to vetting, I plan on being very thorough, I've read some people too go through Open Rent because they can't be passed through checks anywhere else - is more lenient? Able to inspire sympathy to landlords too (I'm not a sucker lol) Is a tenant holding a British passport a requisite would you know? I forgot where I read but it may help in certain circumstances?
Open rent will run the checks but YOU vet them! Check they pay credit, have no ccjs etc. Show them around the place and see if all is normal.
People like to go for Openrent adverts because you're more likely to deal directly with a landlord. Some tenants hate agents and some tenants want to avoid agents because they have ccjs and hope the landlord won't check.
Having a British passport isn't a prerequisite but I heavily prefer it.
Noted, thank you for the info. I wonder if I could trouble you for one last question which has been on my mind. If God forbid the tenant decides not to pay rent, could I have some sort of rental insurance through a third party company? I know some agencies offer that. Or would it be just be a matter of sending them some sort of section, getting a solicitor and potentially going to court?
https://www.landlordvision.co.uk/blog/guide-tenants-stop-paying-rent/
Just read this quick, seems okay, section 8 etc, there is a!so insurance, may have answered my own query lol excuse me. As long as it's all legal, I'm not too bothered, it's the tenant that suffers from arrears not me
Best way to avoid the kind of thing you show is to vet properly! Wait for the right tenants, don't be afraid to reject.
I never give a reason. Just that another group is more suitable.
You don't want to be relying on insurance, going to court, etc. it's hell.
Fine good tenants, look after the property and get things fixed.
I understand, thank you very much!
Have you read the flat lease with regards to being allowed to rent it out?
Have you thought carefully about the economics of letting in the current environment. As a starting point how does 9 months rent per year minus say 1 month rent per year for maintenance and costs , minus 1 month towards service charges, and 1 month towards tenant issues= 6 months rent compared to 4% interest on the capital from sale sitting in a bank account.
Hi, mouse, thank you for the reply. I'm glad you mentioned the !ease because I read something similar in regards to what the lease may or may not allow. I've asked my mother but she's clueless i.e not all there. Am I right in saying I can use Gov.uk registry to find the lease?
Service charges meaning to the freehold owner? It's quite inexpensive. With regards to capital, way I look at it, the property has only increased in value, have discussed selling but defiantly not any time soon.
Reading the lease would be the first step. A lot of people moving against the tide of wanting to be a landlord don't understand the arithmetic or risks involved - you'd have to be extra special to make more money here than on any other low risk investment. But ultimately you need to make your own decision....
Thanks. Just to clarify, I would be technically subletting as I would be the tenant of the leaseholder who is then under the freeholder...?
The leaseholder is your mother. I guess you are living there per her decree. You need to read the exact wording of the lease -- it could say anything for example that only the named lessee can live there as their primary residence. Or it might just prohibit a paying tenant. Or it might prevent short-term lets.
I will have a look for it, thank you. We rented before with an agency but God knows if they looked at the lease, my mum doesn't know so better safe than sorry