I want to self manage. What do I need to do?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    I want to self manage. What do I need to do?

    Hello,
    Newbie landlord, and new to forum. Can’t find a way of starting new topic. However, I had a LA manage a property. Without going into detail, a lot of things were not done and current tenancy lapsed into a periodic. After a lot of wrangling it has been agreed that we would part company and I would not be charged the contract cancellation fee of over £500.00. Tenants are happy staying and had agreed a rent increase with LA and a back dated tenancy. I want to self manage. What do I need to do? I know I need to contact tenants and ask for next months rent to be paid to me. I know that I need to agree a new fixed term tenancy for the rent increase and give them notice of rent increase. They hadn’t had notice from LA but nevertheless agreed. My problem is.... Do I need to do the rights to rent checks and take up references or just ask the LA for copies. Both the tenants have secure jobs and I know where they work. What happens to the deposit. If it is with the TPS does it automatically transfer over. Do I need to let TPS know? If the LA has it, do I ask for it to be transferred to me/TPS.
    Also, they are the second tenants in the property. When first tenants moved in, check in inventory and photographs were taken and signed for. At checkout, there was no comparison with photos and just a written report done and deposit returned without any recourse to me. When new tenants moved in a written conditions report was signed, no photos etc. If I now take over self managing, I have no photos for comparison except the written condition report (not a brilliant one) and original photos. I don’t want to inconvenience the tenants with new inventory etc. There are no written inspection reports available for current or previous tenants. It was all done verbally apparently. My worry is that previous tenants had changed light fittings etc and this may not have been picked up by LA. No permission was sought from me by previous tenants via LA. What else did the LA not pick up.
    Sorry for the long post.

    #2
    well you are starting out the right way by asking for advice. However, you are starting out late because you should have started learning all you could about letting property the minute you became a LL. Using an LA usually only works out well if you are clued up enough to manage the agent. Otherwise, you won't have a clue (as you've experienced) what they're doing right or wrong.

    For example, when you say the "current tenancy lapsed into periodic" you imply that there's something wrong with that. It's actually better for you as a periodic. You do not need to issue a new tenancy to raise the rent. You just need to give a month's notice if the rent is pcm if the tenants agree. These are things you need to learn by joining a landlord association, doing their courses, getting a book on letting property and reading about these things on the forum.

    You have a right to ALL paperwork from the LA in regard to tenants they have found for you who are still in your properties. That is a legal right and you can simply email them to ask for it. If they refuse, politely emphasise that you will raise a formal complaint to them and eventually to their redress scheme if they persist in withholding it.

    I don't believe any inventory can be done in a satisfactory way in the current situation unless you agree a new AST and start again at which point I would strongly suggest you hire a proper inventory clerk to do it as doing it yourself with no experience is likely to make it a complete waste of time if there's a dispute and a complete waste of time if there isn't one.

    Others will have to advise re the deposit as I'm not sure it won't be unprotected at some point during a transfer. I'm wondering if a new AST might cover this, the inventory and the rent increase all in one go - although doing it yourself with no experience leaves a lot of things open to being done wrongly.

    Comment


      #3
      Tatemono,
      Thank you for your wise words. Yes, naively, I thought having an agent would mean I wouldn't have to worry so much about it. They also came highly recommended. It was only after I had been in these sorts of forums that I realised they may have not been providing the service that I thought they should be. It worried me that everything they did was verbal, and always a delay in anything that was asked of them, I was always chasing things. Apparently, I'm not the sort of landlord they normally get. I was led to believe I was a pest. It's when I challenged that it was agreed we part company at no cost to me. I now have all the documents I requested and am satisfied that all the checks were done and appropriate paperwork issued. They have agreed to transfer the deposit to a custodial account in my name once tenants give permission which they have agreed. And yes I have found a good inventory clerk and would use them.
      I didn't realise that a periodic works in my favour instead of a fixed term. Please can you explain why?

      They are good tenants, pay rent on time, neighbours like them, and appear to look after the house; I didn't undertake an inspection, just first impressions when I went to have a chat with them about managing myself. So I don't won't to upset them but I want to protect myself at the same time as being a good landlord.
      And yes since posting, I have done a huge amount of reading various threads and posts and convinced myself that I needed to go on a course. I need to learn so much. I don't want to rely on the adage of learning from my mistakes before it is too late.

      Comment


        #4
        a periodic works better for you because it's more flexible. If you need to, you can give 2 months' notice whereas with a 6 month fixed term, you can't give notice until 4 months in and then have to wait until the fixed term expires before your tenants (might) leave. I'm assuming you're in England, BTW.

        While some might say that it means the tenants are locked in for the fixed term if you keep issuing new ASTs. But a tenant who wants to leave will get their way eventually despite any fixed term. For example, imagine a tenant lost their job with 8 months of a 12 month fixed term left. They can't pay rent, you demand they pay for the remaining months if they want to leave, they refuse and the relationship goes down the pan. However this ends, it won't be pretty. The alternative is to agree a deed of surrender and thus the fixed term really is fairly pointless as a guarantee of rent.

        Letting an AST go periodic also means you don't have to re-protect the deposit, something which has serious consequences if you get it wrong. Nor do you have to re-issue paperwork such as the How to Rent booklet (if a new edition has been published). In fact, once the fixed term expires, apart from renewing insurance and the gas certificate each year, there's not a lot you have to do except keep an eye on rent payments and maintenance issues. Depending on the tenant, that might mean almost no work at all.

        You don't want to rely on learning from your mistakes, no. You're right about that. But you will make mistakes and so do be prepared in advance to simply chalk them up to experience and learn from them. Don't beat yourself up about it.

        We've been managing multiple properties through letting agents for the last 6 years. Once we return to the UK later this year, we'll take over almost all of them ourselves because we need to maximise our income from letting to live off it. I'm sure we'll make some mistakes too even though we're pretty experienced. That's life.

        Comment

        Latest Activity

        Collapse

        • Right to cancel query
          CandM
          Something that came up in a discussion in our office today;
          1) I understand the ASTs not signed in our office gives tenants 14 days to cancel their agreement. But what happens if the tenancy has already started?
          2) What happens if some tenants sign in office and some sign out of office,...
          14-02-2019, 12:55 PM
        • Reply to Right to cancel query
          jpkeates
          The distance selling regulations (2000) do seem to apply to rental agreements - which is interesting.

          It is possible to prevent the cancellation of an agreement once a service has started to be supplied, as long as that condition is confirmed in writing to a consumer before they sign the...
          17-02-2019, 14:29 PM
        • Reply to Right to cancel query
          CandM
          jpkeates,

          Thank you - that's makes sense
          15-02-2019, 11:21 AM
        • Letting/management agent increasing management fees
          vpr1
          Hi,

          I have received a letter from my letting/management agent, saying that from the 1st of April they are going to increase there percentage by 2%+VAT. They are stating that the reason for this is that their costs have increased over the past years. I have been with them for aprox 18 months...
          12-02-2019, 13:04 PM
        • Reply to Letting/management agent increasing management fees
          jpkeates
          Why not suggest that you will agree with the new fee structure once they have agreed that the tenant's rent will be increased by the corresponding amount and they've started paying it.
          14-02-2019, 16:19 PM
        • Reply to Right to cancel query
          jpkeates
          It's a general legal rule that applies to most service contracts.
          There's an automatic cooling off period if the agreement is signed on the business premises or done over the phone or by post.

          There are a number of exclusions and it doesn't apply to tenancies (as far as I know)....
          14-02-2019, 16:17 PM
        • Reply to Right to cancel query
          JK0
          Never heard of that before. Is that some bit of law that only applies to letting agents?...
          14-02-2019, 16:01 PM
        • Reply to Letting/management agent increasing management fees
          vpr1
          I agree with what your saying, it would be silly to move just to get get a worse deal elsewhere and ultimately the agents will recoup their money somehow, if they cant raise it by increasing landlord fees then they'll increase introduction fees etc instead.

          As to whether they are a good...
          13-02-2019, 14:04 PM
        • Reply to Letting/management agent increasing management fees
          jpucng62
          Are they a good agent in all other areas? If you would like to stay with them without the fees increase I would first try negotiating with them. They will not want to lose your business and if you go elsewhere you may get worse service & a fee increase too! As mentioned above, it seems likely that...
          13-02-2019, 11:38 AM
        • Reply to Letting/management agent increasing management fees
          vpr1
          It increases the fee to 11%+VAT, as you said thats an increase of 22%, which makes me suspect that its more to do with the banning of fees rather than an increase in their running costs. Interestingly the letter also references the banning of fees coming into force and does suggest that i might like...
          13-02-2019, 09:31 AM
        Working...
        X