New to Renting

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  • New to Renting

    Hi guys. I work away from home and last xmas the wife & kids decided to move with me leaving our family home sitting empty. I since decided to rent and found a tenant straight away willing to pay the required rent - all good.

    The tenant is a branch manger for a property agent, which has to be a good thing.

    The house was extended and fully refurbished last year and dressed with very expensive furniture, which I have agreed to let fully furnished!! I have asked for 1 months rent deposit (1k), should I insist that any damage that exceeds the 1k is tenant responsibility to repair/replace? Or do I insist on Tenant providing building contents insurance?

    Or do I maintain my current content insurance and have the tenant agree to pay the excess?

    I also intent spending additional monies on the property, internally and externally – should I be aware of anything that legally I should include in the contract?

    Thanks

  • #2
    a tenant cannot insure belongings that do not belong to him....

    BTL insurance will cover you for excessive tenant damage

    You could increase your deposit requirement to just under 2 months rent....

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    • #3
      Originally posted by mark09 View Post
      Hi guys. I work away from home and last xmas the wife & kids decided to move with me leaving our family home sitting empty. I since decided to rent and found a tenant straight away willing to pay the required rent - all good.

      The tenant is a branch manger for a property agent, which has to be a good thing.

      The house was extended and fully refurbished last year and dressed with very expensive furniture, which I have agreed to let fully furnished!! I have asked for 1 months rent deposit (1k), should I insist that any damage that exceeds the 1k is tenant responsibility to repair/replace? Or do I insist on Tenant providing building contents insurance?

      Or do I maintain my current content insurance and have the tenant agree to pay the excess?

      I also intent spending additional monies on the property, internally and externally – should I be aware of anything that legally I should include in the contract?

      Thanks
      Firstly make sure you have a very comprehensive inventory as this will be your only proof of damage if any is done (with photos) secondly for a furnished house take a bigger deposit and finally if there is damage at the end of the tenancy that exceeds the deposit, you can use the small claims court to recoup losses.

      T can insure L's possessions against accidental damage but not for damage that L should be covered for.

      Make sure your contract explains what the deposit is being held for (damage and rent arrears) and make sure it is protected in one of the deposit schemes.

      A property agent makes no difference, they could be a party animal just as much as librarian or a rock star.

      On the spend, again make sure the inventory records the condition of the property/furnature but remember T is not responsible for the fabric of the property, that is your job under section 11 of the 1985 landlord tenant Act

      Comment


      • #4
        Also, be aware that by renting out your principal residence, you may well find yourself liable to capital gains tax if you eventually decide to sell up and move to your current work location. Accountancy advice strongly recommended!

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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        • #5
          Originally posted by mark09 View Post
          Or do I maintain my current content insurance and have the tenant agree to pay the excess?
          Just checking, but you do have insurance for a rented property, not just your original policy from when you lived there yourself?

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          • #6
            Have you advised the mortgage lender?

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