Property In Nice Area - Worried About Letting It Out - So many Horror Stories

[newcastlelad]

Hi Guys

I bought a nice 2 bed flat in a good area rather than have the money sitting in the bank.

I have never let out a property before so many horror stories about tenants refusing to pay rent and not leaving the property. I know all tenants cant be bad.

My questions

Agent reckon £650 ish a month

Should I pay for rent guarantee?

I am of abroad as soon as I can so will need a property management company to collect rent etc. Does anyone recommend any companies in Newcastle upon tyne.

How do i minimise my risks, should i insist management company ask for a guarantor,

Any advice greatly appreciated, take care guys

[Hudson01]

The only advice i can give you is before you go abroad ensure you are there to meet and interview every single prospective tenant until a good one is picked, do not leave that to any agent, they do not care as much about your property as you do. If you want them to find a tenant for you then all is good but do not simply rely upon them to pick the '' the right one ''. There are a number of horror stories out there so you are right to be wary also given this govt's attack on the PRS we have to be even more careful. The rent guarantee and guarantors you mention are fine but they do not compensate for not picking the right tenant, with a decent tenant in the place all the extra safety measures are made null and void. If you put all your efforts into choosing the right occupant you will have minimal hassle and no real drama, i have adopted this for years and had zero issues, i turn away far more people who the letting agents give the big green tick too than i accept. Always meet them yourself....... this is one of your biggest assets trust no one else to let them in the front door.

[newcastlelad]

Hi Hudson, great advice thank you.

What criteria do you use when choosing a tenant, what do you ask them also what info do you require from a tenant such as credit check and deposits and guarantors etc.

Your advice is really appreciated, thank you

[newcastlelad]

Another question Hudson, do you advertise your own properties for rent yourself, if so where thanks

[Hudson01]

I use an agent i trust to '' tenant find '', they do all the credit checks etc and i speak with them about each person before they arrive at the property to view it, so i know when i meet them how they fit the criteria i set (it is strict). It is very difficult to say exactly how i form my opinion on how suitable i think they will be, its a gut feeling really, in the job i do i meet a lot of people, some good a lot bad, and over the many years i have been doing this i can tell very quickly the type of person i am in front of. They have to work, and by that i mean something they have been in for a while (stable), just asking general questions about their life gives you an opinion of how they live and as such how they will live in your property. It really is very subjective but all i can say is that what ever, and how ever, i am assessing them it does appear to work.

I have said before in another post, look at them as you would either a lodger in your own home or a childminder........ if you would not want them to do either of these things, do not let to them.

[JK0]

Ha. Funnily enough some of my present tenants would certainly not have got the place if I'd met them back in Feb 18. (Loads of tattoos and weird piercings.)

Surprisingly the place has been well looked after, and the rent always paid. I almost wonder if they've kept their noses clean, as they know they'd have trouble renting elsewhere.

They move out tomorrow. I'll update this when I see the state it's left in.

[MdeB]

Another question Hudson, do you advertise your own properties for rent yourself, if so where thanks

If you are going abroad, then you need an agent to:

• Handle any issues that come up.
• Handle the withholding of UK tax.

Your first step is to find a good agent.
Talk to them, tell them what you want (I would think "long-term tenants" - unless you only plan to be abroad for a year or so, and "tenancy to become periodic after initial term - so they do not charge you every 6 months or year for renewals, and T can be got out quicker if things go wrong).
Negotiate on any of their "standard terms" that you do not like.

When you meet prospective tenants:

• Determine if their plans on length of tenancy match your desires.
• Give the chosen one your contact details, so that they can contact you if your agent appears to be acting unreasonably (eg giving tenant a S21 notice to generate fees for themselves)

[JK0]

They move out tomorrow. I'll update this when I see the state it's left in.

Small amount of paint damage, burn on carpet, and broken window pane. Par for the course.

[jpkeates]

What criteria do you use when choosing a tenant, what do you ask them also what info do you require from a tenant such as credit check and deposits and guarantors etc.

If you do not know this, why have you decided to get into a business where there is (as you have identified) significant risk?
You'd have been better leaving the money in the bank.

[Interlaken]

Dual income from paid work properly checked and referenced. No kids. Good credit score and meet them.

IMO that gives best chance of rent payment

[DPT57]

You will need a full management service from a good agent as you will not be here to deal with crises and without significant study, will not know how to deal with them either. Keep asking for recommendations on this and other landlord forums and someone may be able to send you a private message with some names.

[TykeL&L]

I agree. I meet every prospective tenant.
I use a web service to advertise and sign agreements. Openrent. I don't know others feelings on them but it's worked fine for me.
I am very picky. For instance if instead of calling , they text using "Hi M8 I ov seen UR ad for the flat" they don't get to view!
I also ask for ta copy of their last 6 months bank statements before early in the process It puts a lot off. But also I have never had a poor tenant across 5 properties in 15 years. Many will not like my methods , but a bad tenant can cause a lot of stress!

[Hudson01]

I meet every prospective tenant.

I am very picky. For instance if instead of calling , they text using "Hi M8 I ov seen UR ad for the flat" they don't get to view!

I have never had a poor tenant across 5 properties in 15 years. Many will not like my methods , but a bad tenant can cause a lot of stress!

Your methods mirror pretty much exactly how i operate and i too have had zero issues, it works for me so that is all that matters.

[TykeL&L]

But..... I also have never raised the rent on a tenanted property. If they look after it and pay the rent I'm happy to keep it as it is. And if there is a problem I fix it the same day if possible. Took 3 days to replace the boiler this year though.

[jpucng62]

Amongst the horror stories there are really good tenants - its just that they never get reported! Good news is no news and so we are led to believe that the world is full of rogue LLs and non-paying tenants. Good initial checks should weed out the worst and a nice house in a nice area will generally attract a nice tenant.

Good luck