BTL: property self-management after/without Agent

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

    #31
    Hey guys

    Thanks so much for the help so far, it's good info and has sent me off researching other stuff. Someone asked if I should just negotiate a better rate, I did think about that, and also changing agents as I know one that will charge only 8%/month compared to my 12%. My original deal was 15% with maintenance, but I renegotiated this to 12% whereby I managed any maintenance issues (see point 2).

    Anyway, it turns out my agent likes me; I got an e-mail this morning from them saying that as they have had the property for a few years and that as I am giving them almost two months notice, they will not be asking me for the £300 and that they will just let the agreement end! So that's good news, and they havent asked about the tenants taying there.

    So here is why I think I should be setting things up myself....

    1. My house is in pretty good shape and most of it is has been totally renovated in the last three years (it's about 110 yrs old and the only original things are the walls and roof)

    2. My best friend, who is a builder/handyman lives about 20m away from my house, and he is happy to take on any maintenance issues without charge, as long as I pay him if anything needs attention. I also know a lot of builders of pretty much every trade, including two friends who run maintenance contracts for let properties, so I'm pretty sure I can get any issue resolved sooner rather than later. I should add that for two years I have managed the maintenance myself, and as I was out of the country for most of those two years everything has been dealt with promptly using this system. My tenants also aren't the type of people who want small problems dealt with NOW. They are pretty laid back, and as long as I come up with a solution fairly promptly they have been happy so far, not that there have been many issues.

    3. My tenants seem to be very decent people, and we have a very good relationship. I know relationships can go pear-shaped occasionally, but you have to have a start point, right, and it couldn't be much more amicable.

    4. I will probaby be saving myself around £1800 per year in agent's fees.

    Also, in answer to another question, the house is almost unfurnished. I say almost, there is a wardrobe and a dining room table plus chairs, so there isn't much of an inventory to speak of. I know my agent used to check it once every few months and charge me £60 for the privilege, but is it more complicated than it sounds? I can also cover in/out inspections using the maintenance contact if I am not available.

    Does it sound like I am moving in the right direction? Thanks to everyone so far, it's all starting make much more sense.

    p.s. thanks to the person who PMd me the link to this;

    Comment


      #32
      Originally posted by tef View Post
      Does it sound like I am moving in the right direction?
      It certainly sounds like you know what you are doing. I don't think you will have any problems with your current tenants --- where it might get complicated is if/when they want to leave.

      But I guess you could always re-engage the LA if you needed to.

      I must admit that your post does show a positive attitude and I would certainly be happier dealing with you than with many LA's.

      Peter

      Comment


        #33
        Originally posted by tef View Post
        Also, in answer to another question, the house is almost unfurnished. I say almost, there is a wardrobe and a dining room table plus chairs, so there isn't much of an inventory to speak of. I know my agent used to check it once every few months and charge me £60 for the privilege, but is it more complicated than it sounds? I can also cover in/out inspections using the maintenance contact if I am not available
        Yes it is more complicated than it sounds. Even if a property is completely unfurnished you should still have a full (and preferably independently drawn up) inventory in place.

        As a quick example - imagine your tenants decided to scribble all over the walls, requiring the whole house to be redecorated at a cost of - lets say £800 - would you be happy to bear this cost when they say "it was like this when we moved in" and you can't prove it...

        A good inventory will cover the ceiling, lights, walls, woodwork, doors, windows, floors, electrical fixtures and fittings as well as any furniture and white goods that are in the property.

        Get one done. Its a small cost for the protection of you investment

        independant impartial inventories

        Comment


          #34
          [QUOTE=tef;66966]
          Does it sound like I am moving in the right direction? Thanks to everyone so far, it's all starting make much more sense.

          (QUOTE]

          Just a bit of advice - IMHO a good tenancy is like building a house - use quality materials - the better the foundation and preparation the better the house and it should'nt fall down.

          A good tenancy agreement written for the property, a good in depth inventory - get all the t's crossed and i's dotted at the very begining and you should have very little trouble.

          When I managed a large estate, the people who had the best credit records and paid on time were usually the drug dealers and thieves cause they had loadsofmoney so dont put all your faith in credit checks and the tenant vetting process either.

          Best of luck, I hope it goes well for you.

          Comment


            #35
            Originally posted by tef View Post
            Hey guys

            Thanks so much for the help so far, it's good info and has sent me off researching other stuff. Someone asked if I should just negotiate a better rate, I did think about that, and also changing agents as I know one that will charge only 8%/month compared to my 12%. My original deal was 15% with maintenance, but I renegotiated this to 12% whereby I managed any maintenance issues (see point 2).

            Anyway, it turns out my agent likes me; I got an e-mail this morning from them saying that as they have had the property for a few years and that as I am giving them almost two months notice, they will not be asking me for the £300 and that they will just let the agreement end! So that's good news, and they havent asked about the tenants taying there.

            So here is why I think I should be setting things up myself....

            1. My house is in pretty good shape and most of it is has been totally renovated in the last three years (it's about 110 yrs old and the only original things are the walls and roof)

            2. My best friend, who is a builder/handyman lives about 20m away from my house, and he is happy to take on any maintenance issues without charge, as long as I pay him if anything needs attention. I also know a lot of builders of pretty much every trade, including two friends who run maintenance contracts for let properties, so I'm pretty sure I can get any issue resolved sooner rather than later. I should add that for two years I have managed the maintenance myself, and as I was out of the country for most of those two years everything has been dealt with promptly using this system. My tenants also aren't the type of people who want small problems dealt with NOW. They are pretty laid back, and as long as I come up with a solution fairly promptly they have been happy so far, not that there have been many issues.

            3. My tenants seem to be very decent people, and we have a very good relationship. I know relationships can go pear-shaped occasionally, but you have to have a start point, right, and it couldn't be much more amicable.

            4. I will probaby be saving myself around £1800 per year in agent's fees.

            Also, in answer to another question, the house is almost unfurnished. I say almost, there is a wardrobe and a dining room table plus chairs, so there isn't much of an inventory to speak of. I know my agent used to check it once every few months and charge me £60 for the privilege, but is it more complicated than it sounds? I can also cover in/out inspections using the maintenance contact if I am not available.

            Does it sound like I am moving in the right direction? Thanks to everyone so far, it's all starting make much more sense.

            p.s. thanks to the person who PMd me the link to this;

            Unless you allow cracks to develop between you and your tenants, there is no reason why relationships should go pear-shaped. If you and your tenants are both decent and reasonable, there should be no expectation that things should change at all.

            I have been a landlord for almost 20 years and in all these years, I've only encountered a few minor problems with tenants, due to misunderstandings or tenant-to-tenant conflicts when I rented on a room basis. I've had few voids and also few maintenance problems caused by tenants. Most tenants in my market (85-90% or more in my view) aren't a problem, but often landlords focus on the 10% or so who are a problem and expect that all tenants will be like that. It also matters about one's attitude towards tenants and what condition your property is in when you let it out
            .

            If you don't value those items in your house at all and the decorative condition, carpets and the interior fabric of the property, you don't have much to worry about.
            But what if a tenant wanted to decorate - what would you do? How would you record the condition it was prior to their decorations?
            What if the tenants left and you discovered a problem with a wall, window, door, lock, floor, etc., that they hadn't mentioned to you - what would you do?
            What happens if the tenants you have now leave and new people come in who aren't as good as the current tenants - what will you do if they damage something?


            An inventory is an independent expert's opinion of what they see at that moment in time. What would you do if you didn't see the property for a year or more - would you remember its condition before the tenants moved in?
            If you don't have that document, its your word against the tenant's, even if they are as good as you say (and notwithstanding my previous paragraph about relationships). What if the had a party or someone staying over and and one of their guests damaged something.
            Also doing check-ins and outs by yourself could be seen as biased if ever a problem occurred. I've done these myself when I had rooms but not for flats and houses.


            Does it sound like I am moving in the right direction? Thanks to everyone so far, it's all starting make much more sense.

            In my opinion, success in the property letting game is principally about knowing who you are opening up your property to. If the people are tops, everything else becomes admin and not much more. If they're a tenant from a very hot and red place, your life will become upside down and quite stressful.
            Last edited by TenantsLuvMe; 11-03-2008, 22:02 PM. Reason: formatting problem

            Comment


              #36
              Again, thanks for all the advice, it's been really helpful.

              So at the moment, as far as I can see, I need to do the following.

              1. Draw up (or copy) a tenancy agreement.

              2. Get the inventory done, preferably by an independent with experience. Is the agent obliged to give me a copy of this, seeing as I have paid them to do it already?

              3. Give the tenants my bank details and tell them to change the standing order over after their final payment is made under the existing agreement.

              4. Get the deposit from them, either directly or see if my agent will transfer it; this has set alarm bells off slightly in my head, as there will obviously be a period where the tenants are living there and I won't have the deposit. Is there a way of avoiding this if the agent cannot transfer the deposit directly to me?

              5. Inspect the property myself maybe a week or two before the changeover in case of any issues/damage.

              Is there anything I am missing, or don't even know about yet!?

              Thanks.

              Comment


                #37
                4A. Protect deposit, if existing AST was created after new rules came into force.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #38
                  If you are using the DPS there is a function for change of lanlord or agents.

                  Comment


                    #39
                    Originally posted by jeffrey View Post
                    4A. Protect deposit, if existing AST was created after new rules came into force.
                    yes, sorry, that is on my list but i forgot to write it here.

                    Comment


                      #40
                      Could anyone tell me my agent is obliged to give me the inventory they made when I started the lease? Thanks.

                      Comment


                        #41
                        Originally posted by tef View Post
                        Could anyone tell me my agent is obliged to give me the inventory they made when I started the lease? Thanks.
                        Yes, if you've commissioned it and paid for it, of course - you're the client.
                        The tenants also should get a copy.

                        Comment


                          #42
                          Managing my first BTL?

                          Hi, for the last 18 months i have had the luxury of letting out my BTL property 'fully managed' through a letting agent.
                          The property has been vacant now for 2 months & im not sure my agent is pushing 'aged' landlords properties but only newly booked ones.
                          I have now advertised the property privately, if i get any interest, what is the best way to manage the property myself? I dont know how to set up AST's,get references etc. I would prefer to keep the property fully managed because its quite a distance from where i live but i cant afford for it to sit empty for much longer.
                          Any advice would be greatly welcome.

                          Comment


                            #43
                            Due to a lack of experience why not advertise it yourself, if you find someone before the agent negotiate a deal with him to manage at a reduced rate seeing as you found the tenant yourself.
                            Ambition is Critical

                            I don't profess to be a knowledge in all areas, my advice is based on life experience.

                            Comment


                              #44
                              Due to a lack of experience why not advertise it yourself, if you find someone before the agent negotiate a deal with him to manage at a reduced rate seeing as you found the tenant yourself.
                              thank you for your reply.

                              It is my first BTL so i would like to learn how to manage it myself otherwise i will never know.Is there a 'guide' or list of what to do & in what order?
                              Who to use for obtaining tenant checks & references?
                              How much deposit to ask for (1 month rent in advance with the same amount as deposit?)
                              Why agents ask for a bond as well as a deposit?
                              Is a TDS required for 1 property landlords?

                              I know its a lot of questions but if i can get pointed in the right direction im sure i could manage it myself.

                              Comment


                                #45
                                Don't wish to put a damper on your thoughts but it's too risky if you don't know what your doing.
                                The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                                Comment

                                Latest Activity

                                Collapse

                                • Reply to Agent vs Open Rent
                                  by Turbine Terry
                                  If you use the Openrent full tenancy creation service (£49 + referencing) they automatically serve the How to Rent guide and all prescribed information for you and protect the deposit, all done by the software (no human to mess it up) and by email and all parties are copied in for proof of service...
                                  22-06-2022, 11:16 AM
                                • Agent vs Open Rent
                                  by annam222
                                  Hello all,
                                  I wondered if anyone could give me some advice please.
                                  Tenants who have been renting my one bed flat for the past three years have just given notice that they will be moving out. I have used a local agent on a ‘let & rent collection’ basis which has worked well but they...
                                  20-06-2022, 20:07 PM
                                • Reply to Agent vs Open Rent
                                  by boletus
                                  I'm not. Other online letting agents are available....
                                  22-06-2022, 09:52 AM
                                • Reply to Agent vs Open Rent
                                  by Beswick
                                  Their process is about as simple as they could possibly make it. If you're logging into this forum and posting, it won't be a huge stretch of your abilities to get your property listed on OpenRent.

                                  Yes, I used their referencing service (£20 per person, plus £20 for any guarantor). I...
                                  22-06-2022, 08:19 AM
                                • Reply to Agent vs Open Rent
                                  by Turbine Terry
                                  I am a huge fan of Openrent. There are lots of threads showing users experiences of Openrent on these forums. If you type Openrent into the search box at the top of the page on the main forum home page you will see them.

                                  If you decide not to use Openrent, and so use a traditional agent,...
                                  22-06-2022, 08:08 AM
                                • Reply to Agent vs Open Rent
                                  by annam222
                                  Berwick thank you that’s so helpful! I will definitely do the inventory and great idea on printing and signing the Tenancy Agreement together- I shall do that too.
                                  Does the Open Rent site guide you through the steps of the process? I.e. advertise, meet/accept, reference etc?
                                  Did you use...
                                  22-06-2022, 07:46 AM
                                • Reply to Agent vs Open Rent
                                  by Beswick
                                  I've used agents for 'tenant find only'.

                                  After a bad eperience, I used OpenRent. I've now used them twice and got great tenants both times.

                                  It's so much better to have complete control. You get a gut feeling for the tenant when you phone them to arrange the viewings, even...
                                  22-06-2022, 06:56 AM
                                • Reply to Agent vs Open Rent
                                  by JBJ01
                                  In the window of a rogue agent!

                                  -the one's who actually benefit when a rogue tenant brings the landlord back to them much more often than a streetwise OpenRent landlord needs to re-let. My 'fees' are on average £29 for an average 4 year let, with rents only below market rate for exceptionally...
                                  21-06-2022, 17:11 PM
                                • Reply to Agent vs Open Rent
                                  by junglerower
                                  I have always done it without an agent; It is my show after all. I usually can filter out the right tenant by having a conversation through mailing. The referencing I do through a previous landlord or agent - big name agents is best though, as they are more thorough in their screening; if the Tennant...
                                  21-06-2022, 16:33 PM
                                • Reply to Agent vs Open Rent
                                  by gnvqsos
                                  If people are rude enough no to attend a viewing then it is a good thing -you don't want rude arrogant selfish tenants .I can usually find a few tasks so time is put to good use-irrespective of absences.
                                  21-06-2022, 15:23 PM
                                Working...
                                X