Tenant find or Managed? Thoughts...

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    Tenant find or Managed? Thoughts...

    Hi everyone

    I've only done tenant find before as I have found that to be okay and have been renting to "professional" tenants, due to the location and quality of the properties.

    However, I have just bought a BTL terrace in a slightly worse area (albeit not awful). A lot of the local agents offer rent insurance as part of their "managed" service.

    The cost options are:


    - Tenant find: £450+vat, being £540 p/a
    - Managed: 12%+vat, plus £150+vat per letting, being £1,130 p/a (based on £550 p/m rent)

    So, the benefits to me are that for just shy of £600 I get full insurance. The insurance is in the agent's name so I guess if it doesn't pay out I can sue them. It saves me messing around making sure I get the tenants properly vetted in line with Ts&Cs and, no doubt, if I use tenant find only, the insurance will not be helpful.

    The other benefits are that it is much more professional and they'll deal with all the s8 costs for possession and deal with the insurance claim. Whilst I'll attend and do some of the works myself, I'll likely appoint my own trades people directly to avoid the agents stitching me up. So the tenant wouldn't really see me too much.

    The other main benefit is that if the tenant leaves after 6mths then I only have to pay another £150+vat rather than another £450+vat.

    Additionally, they would do periodic inspections and finally they would also arrange (at a cost?) for check in and check out - and be liable for mistakes.

    I am 40% tax payer so the cost variance is smaller than if I were 20%.

    I'm looking to get a few in this area, so the 12% should come down on a portfolio basis - in fact, I'd hope to get it down to 10% straight away.

    Thanks in advance!!

    Rob

    #2
    Bump - 30 views but no comments

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      #3
      lettingaporperty.com charge £80 for their tennant find service so the difference on a competitve quote is rather larger, so I guess it depends on the cost of insurance. Have you tried running details through a price comparison website? What area are you in?

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