Newby looking for advice / maybe even reassurance I think!

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    Newby looking for advice / maybe even reassurance I think!

    Just thinking of taking the plunge and renting an oldish property I have been left.!
    And so I have a couple of questions if you don't mind please?
    I have a terraced property that has just had a flash over to tidy it up as well as a rewire and a re plumb!
    I had {Mod - name removed} in to give me some ideas of rental potential and costs of their management service. Especially the 'Full package' as when in the UK tend to live about 50 miles away !
    Have you had any experience of having a property fully managed ie hands off?
    If so what are the pitfalls and shortcomings with it apart from cost , which in this case is 10% of rent + VAT? If not do you use anyone for any aspect of rental as in vet tenants etc etc or is it easy enough to do yourself?
    They also suggest that I don't close my mind to DHSS as it limits the potential for tenants ! Whats you thoughts on this please?
    They say they provide a full vetting service with Guarantor's etc. Have you experience of this kind of thing and does it really secure you or is it better to pay for rental insurance, though that seems just like more of the bottom line washing away!
    The place has no white goods and is unfurnished except for cooker and carpets etc. Is this a good stance or is furnished better? My thoughts are that anyone who invests in the furniture is likely looking to stay longer and is there fore more 'committed'. Is this just naive?
    I know its all a bit of a 'how long is a bit of string' scenario but dread getting someone who'll pull the floorboards up to burn them for winter and then rip out the plumbing to weigh it in! Or a drain collapses and costs two or more years rental to put right while I have to look after the tenant or what ever!
    the property is in a north of England city, terraced with a sale value of about £65000.

    #2
    http://forums.moneysavingexpert.com/....php?t=5180214
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Originally posted by eanp View Post
      Just thinking of taking the plunge and renting an oldish property I have been left.
      You'd be letting the property not renting it. Pedantic, but a massive difference between the two.
      "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

      What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

      Comment


        #4
        You’ll need to remove the name of the agent from your post. Even though you’re not saying anything negative about them, I think it’s against forum rules. Plus they may not want you publishing the fee they’ve offered.

        I’d get at least two other local agents out for comparison and I’d make sure they’re independent rather than larger corporate agencies. I’ve worked for the latter and now own and run the former. Large corporate agencies generally burn througb staff pretty frequently and tend to employ 18-25 year olds for many of the less highly paid positions; negotiators, administrators, property managers, etc.

        In an independent agency, you’re likely to have the owner of the business actually working in the office and, hopefully, caring about the quality of what they’re doing. Obviously there are plenty of crap independent agencies out there too, which is why it’s important to select carefully.

        Go on some courses, do some reading, learn. There are things you can do wrong when letting a property that can land you in jail. I’m not kidding.

        Comment


          #5
          The problem with tenants who are not earning anything is that theyre usually not worth suing if their arrears or damage exceeds the deposit. You therefore take the hit. Guarantor agreements are hard to get right and even harder to enforce beyond the first term. If your property is not the type to attract working professionals then at least make sure your involved in the vetting of prospective tenants and dont consider anyone whose history you cant verify

          Comment


            #6
            I manage my own and as a consequence they are <10 minutes drive away. The issue I'd have with not managing the property is having to employ the services of someone to do menial tasks all of the time. The cost you've quoted of 10% plus vat doesn' include these costs or the mark up of these costs that agents seemingly add for arranging these tasks.

            I don't know your family or financial position but how many years potential rent (using 10 months a year) is 65k?
            "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

            What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

            Comment


              #7
              which northern city are you letting this in? Someone here may know a reputable agent for that area.

              I let a number of properties in the UK and live overseas so all are managed by agents. I currently have three - all independent. One is superb, one is great (but was rubbish until I gave them an ultimatum) and one is mediocre but are learning from their mistakes. I manage all three letting agents. By that I mean that I take the time to learn as much as I can about the business so that I can hold them accountable. As far as I'm aware, only one of the three have done absolutely nothing wrong so far so that knowledge has saved me a lot of hassle when I've caught something that the less professional agents haven't.

              Don't evaluate agents solely on price. Quality is worth paying for and good independent agents can afford to charge higher fees because their reputation sustains it. It's not the only criterion of quality though. Compare agent contracts and read through them very carefully. Insist they remove any clauses that you aren't comfy with. Typical clauses are that they insist on being sole angents for the duration of the agreement, that they charge for annual or regular renewals of ASTs and that you pay anything to them for terminating the contract, especially anything about keeping the tenant they have found. If they refuse to remove anything reasonable, simply walk away.

              Comment


                #8
                Originally posted by tatemono View Post
                which northern city are you letting this in? Someone here may know a reputable agent for that area.

                I let a number of properties in the UK and live overseas so all are managed by agents. I currently have three - all independent. One is superb, one is great (but was rubbish until I gave them an ultimatum) and one is mediocre but are learning from their mistakes. I manage all three letting agents. By that I mean that I take the time to learn as much as I can about the business so that I can hold them accountable. As far as I'm aware, only one of the three have done absolutely nothing wrong so far so that knowledge has saved me a lot of hassle when I've caught something that the less professional agents haven't.

                Don't evaluate agents solely on price. Quality is worth paying for and good independent agents can afford to charge higher fees because their reputation sustains it. It's not the only criterion of quality though. Compare agent contracts and read through them very carefully. Insist they remove any clauses that you aren't comfy with. Typical clauses are that they insist on being sole angents for the duration of the agreement, that they charge for annual or regular renewals of ASTs and that you pay anything to them for terminating the contract, especially anything about keeping the tenant they have found. If they refuse to remove anything reasonable, simply walk away.
                The city concerned is Hull

                Comment


                  #9
                  There was a thread recently about Hull - https://forums.landlordzone.co.uk/fo...ouse-in-strood

                  ( The agency in question does have a full list of fees on their website - I think they are pretty steep, and I note that they have very few rental properties in Hull. For example, tenants would pay over £500 in application / arrangement fees - and you will pay over £50 every year for deposit protection, and nearly £100 for 'arranging' a periodic tenancy. )

                  Comment


                    #10
                    Not for much longer though.

                    Comment


                      #11
                      Originally posted by Ted.E.Bear View Post
                      There was a thread recently about Hull - https://forums.landlordzone.co.uk/fo...ouse-in-strood

                      ( The agency in question does have a full list of fees on their website - I think they are pretty steep, and I note that they have very few rental properties in Hull. For example, tenants would pay over £500 in application / arrangement fees - and you will pay over £50 every year for deposit protection, and nearly £100 for 'arranging' a periodic tenancy. )
                      Hi Ted E Bear

                      Are you referring to the agency that I mistakenly included within the original post which has been removed ?

                      Comment


                        #12
                        Originally posted by Wannadonnadoodah View Post

                        I don't know your family or financial position but how many years potential rent (using 10 months a year) is 65k?
                        Not quite understanding this comment Wanna' . If I were to sell after costs etc I would probably see 62k In terms of rent that would equate to about 14 years using the gross, or 16+ using the net.

                        Comment


                          #13
                          Originally posted by Ted.E.Bear View Post
                          ( The agency in question does have a full list of fees on their website - I think they are pretty steep, and I note that they have very few rental properties in Hull. For example, tenants would pay over £500 in application / arrangement fees - and you will pay over £50 every year for deposit protection, and nearly £100 for 'arranging' a periodic tenancy. )
                          Most agents in London doesn't charge that much. I would love it even more if they use a custodial scheme for the deposit!
                          I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                          I do not answer questions through private messages which should be posted publicly on the forum.

                          Comment


                            #14
                            Originally posted by Ted.E.Bear View Post
                            you will pay over £50 every year for deposit protection, and nearly £100 for 'arranging' a periodic tenancy. )
                            those are exactly the kinds of things I was referring to that you need to walk away from in LA contracts. Both are completely unnecessary and the fact that they charge these fees means they cannot be trusted to be honest with you and to respect the fact that you are both in business for mutual financial benefit. Plenty of competition that will treat you better.

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