BTL: property self-management after/without Agent

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    BTL: property self-management after/without Agent

    I rent off a friend as a lodger. she's leaving the country and wants to continue to rent out the flat. She considered a letting agent but they seem to be way too expensive.

    She's offered me the option of managing & letting the flat for her. Eventually I may move on from the flat in the next 6-12 months, but I could continue to act as property manager. (Even if I don't live there)

    How would this work in practice? Would I just continue to rent the flat and sub-let, or would I be assuming the role of manager and keep tabs on repairs, rent etc?

    We would probably need a solicitor to draw up some kind of agreement so it's all clear.

    I know there would be all sorts of responsibilities as a landlord, plus the issue of getting trustworthy tenants in, collecting rent etc, but I'm really interested in how the arrangement could be set up.

    Any constructive thoughts welcome.

    #2
    Yeah right and all of my tenants aren't actually tenants they are "property managers". Silly me.

    Tell your friend to post her own message on this forum and get the correct information she needs to become an effective professional landlord. If she let's you stay as a "property manager" she is setting herself up for a fall.

    Property manager my @rse.

    Comment


      #3
      Bit Harsh

      However, most people on here would recommend a new Land Lord finds a good letting agent for the first couple of tenants so they can learn the ropes. If your friend takes you on she will bear the brunt if anything goes wrong and put your friendship to test. I would advise you to a) stear clear of something with so many pitfulls until you have enough experience and b) not go into this kind of partnership with your friend who could soon become an enemy (trust me, Ive been there).

      Comment


        #4
        Thanks for the reply dazalock.
        I take the point about not entering into something without experience, but the question is, how do you get experience without ever actually doing it? Don't think I understand what you mean by "learn the ropes", sorry.

        Our problem with the property agent is
        1)they are extorionate from both a landlord and tenant point of view
        2) they want to chuck me out before they would take on the property

        Both of us have experience of property agents which is not great - they don't seem to do very much in the long run, so my friend isn't keen on using them.

        Poppy, thanks for posting such an unhelpful comment. You should get some more experience using internet message boards. People come here to exchange ideas and advice, not to vent their personal problems - hence the request for "constructive" replies.

        Comment


          #5
          Hi - I really think Poppy is over the top here and unhelpful. All of us have to start somewhere in the renting jungle. Generally I think you should never rent to or from friends or relatives.
          However to try to answer your query. So you stay as a lodger until you leave in 6-12 months time. Then I would not sublet, this could cause problems. Become the effective manager and learn all you can about renting. I have never used agents having the same views as you both. You need common sense and the ability to know when you need help. Thats why this forum is so helpful. There are several very good books on the subject of letting property. You need to do as much research as possible. The most important item is to get good tenants and find someone to do the maintenance for you. I would also go to www.landlordlaw.co.uk, join for £10 and ask your question of Tessa the solicitor on the site. She will be able to point out any legal problems you may have. You will also find it very useful to read all the questions and answers on the site, if only to see how things can go wrong. Good luck Susan

          Comment


            #6
            That's really helpful advice, Poppy, just a shame about your tone.

            IMO You should act just like any other managing agent. Contracts should be between your friend and the tenants. You should not sublet - that might open up all sorts of cans of worms. But beware falling out with your friend... when the boiler goes and your friend cannot afford to replace it.
            The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

            Comment


              #7
              Self-management of BTL (dismiss Letting Agent)

              Hello,

              My name is Brian, I'm wanting to let my beautiful house out as I'm moving in with my girlfriend. It breaks my heart as I renovated it to the highest standards thinking I would live there forever - yada yada! that's life!

              So in a few months I'm planning on moving out and trying to rent the place out. First off I'll be local so I'm happy to maintain the place and source tradesmen when I need to, so I'm thinking of using an estate agent simply to find me tenenats and check them out. The agent I have been speaking to charges 75% of the first months rent to source a tenant. In my case this would be about £900 which is a lot. What I'm worried about is that my tennants are moving out every 6 months so I end up paying out loads of cash to the agent. So my questions are as follows -

              1. is it practical to find tennants yourself? adverts in papers etc...?

              2. I have seen lots of places that do checks on tenants to make sure they are who they say they are - is there a good recomended company for this?

              3. If I were to decide not to use an agent how would I go about getting a contract or tenancy agreement drawn up?

              Please feel free to give me any advice as I'm new to all this.

              Many Thanks

              Brian

              Comment


                #8
                I haven't let many properties, but I have found the newspaper and (for individual rooms) the internet much more effective than the agents. Out of four properties that we started with last year, the agents let one in about two months and we let the other three in about three weeks when we got fed up waiting. Also, as far as I can see the agent's management fee is basically us paying for a telephone messaging service since we end up liasing with tenants and dealing with any problems.

                There are some excellent cheap AST agreements on the internet or in landlording books, and all the advice you could need on forums like this.

                Other people may have had different experiences of agents, but I don't think the tenant finding service that I've had is worth £900.

                Comment


                  #9
                  BTL landlords managing it themselves

                  I have been looking for the best way to manage my portfolio (7 houses). Until recently I have used an agent but I am falling out of love with the relationship. The way I figure it I have 3 options:

                  1 Find a new agent
                  2 go it alone
                  3 Online services such as Ezylet
                  4 Sell the bloody things before the crash!!


                  I’m thinking that doing it myself might be a bit fulltime on top of my job and the online management with a 3rd party seems the most desirable.

                  Any thoughts or suggestions?

                  Comment


                    #10
                    Originally posted by parrot_D View Post
                    I have been looking for the best way to manage my portfolio (7 houses). Until recently I have used an agent but I am falling out of love with the relationship. The way I figure it I have 3 options:

                    1 Find a new agent
                    2 go it alone
                    3 Online services such as Ezylet
                    4 Sell the bloody things before the crash!!


                    I’m thinking that doing it myself might be a bit fulltime on top of my job and the online management with a 3rd party seems the most desirable.

                    Any thoughts or suggestions?
                    7 Houses is not a full time job. Even 3 times that amount is pretty easy.
                    Give it a go on your own, see how you get on, if it's not for you, then look at another agent.

                    Comment


                      #11
                      Originally posted by Colincbayley View Post
                      7 Houses is not a full time job. Even 3 times that amount is pretty easy.
                      Give it a go on your own, see how you get on, if it's not for you, then look at another agent.
                      thanks for the response

                      It would still be nice to just hand it over / email it to someone and have them take care if the rates were good. I have noticed the online options often offer a lot of services for free which, although it isn't a full time job as such, would still save me some time.

                      Comment


                        #12
                        I have done a little more digging and decided to go with these guys here

                        I am looking to move things and step up the pace over the next 6 months and they are offering free advertising and are also still building and developing more features for the site. I gave them a call and it all sounds potentially very exciting and most importantly value for cash and should be coming of age at the right time for me.

                        Comment


                          #13
                          Originally posted by parrot_D View Post
                          I have done a little more digging and decided to go with these guys here

                          I am looking to move things and step up the pace over the next 6 months and they are offering free advertising and are also still building and developing more features for the site. I gave them a call and it all sounds potentially very exciting and most importantly value for cash and should be coming of age at the right time for me.
                          Ahha, i'm with you now!!!!

                          Comment


                            #14
                            Yeah I think it is best for my position and they look like a good company, have you used them before or know of them? They are quite new and when I spoke with them they had lots of stuff on the agenda for the coming months.

                            Comment


                              #15
                              Originally posted by parrot_D View Post
                              Yeah I think it is best for my position and they look like a good company, have you used them before or know of them? They are quite new and when I spoke with them they had lots of stuff on the agenda for the coming months.
                              As I said I get it!!!

                              Did it take you long to get the website designed?

                              Comment

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