Renting out a house

Discussion in 'Off Topic' started by Selectamatic, Jan 10, 2019.

  1. Selectamatic

    Selectamatic Member

    Location:
    North Wales
    Hello,

    I'm kicking the idea of buying a house to rent out about.

    Nothing swish, a two up two down type of affair in a nearby town.

    I am very green to the whole process, would any seasoned landlords like to pass on some hints and tips?

    Thank you all!

    :)
     
  2. Rowland

    Rowland Member

    Location:
    Northeast England
    Due to changes in taxation it’s not quite what it used to be.
    Try and stay away from the bottom end of the market, your tenants are the most likely to do a bunk , paying for a roof over there heads is low on there priorities.
    Not sure what sort and sized towns are near you. Think about house share where you rent each bedroom to different tenants and they share the communal parts of the house . There’s websites that specialise in this to rent rooms. SpareRoom.com is one .
    It’s more work but you will make more money. You might need an HMO .
    Treat your tenants like cattle, make sure there warm and dry and muck’m out every now and then.
    2 bed terrace around here would be around 450-500 per month.
    House share turn living room into a bedroom.
    3 bedrooms
    70-100 per room per week to include all bills .
    It’s different but not rocket science, good luck
     
  3. ewald

    ewald Member

    Location:
    Mid-Lincs
    One house is a high risk investment - a non paying tenant leaves you with no income. If you have 4 or 5 the inevitable problems are covered by the (hopefully) good tenants.
    Unless you are in an area with low house prices you are unlikely to get a decent return from rent - you are thus relying on capital growth. How certain is that over the next few years? Personally I feel that the Buy to Let boat has sailed.
    If you want more info, look at Landlordzone - I have always found it helpful.
     
  4. Rowland

    Rowland Member

    Location:
    Northeast England
    A house with a few tenants also means that you hopefully will always have rent coming in .
    Stay away from men who have just split up with there partners they will get back together or find a new partner and move on
     
    Last edited: Jan 10, 2019
  5. Exfarmer

    Exfarmer Member

    Location:
    Bury St Edmunds
    It’s all about the tenant, find a good one and treat them right. We are lucky to have a superb young family who treat the property better than I would. In return all landlord issues I sort immediately. Feel sorry for them as I know they would like to buy it , but cant afford to.
     
  6. rob1

    rob1 Member

    Location:
    wiltshire
    I have a retired couple in one of mine they were there when I bought it and intend to stay until they die, they are late 60's now so hopefully a few years, they are no hastle, look after it well and as you say in return any problems get sorted asap.
    Best earner is a student house in a uni town, high rent but more agro
     
    ollie989898 likes this.
  7. Rowland

    Rowland Member

    Location:
    Northeast England
    This is not necessarily true, it’s down to what you pay for the house in the 1st place It’s about 70-80 k per bedroom in local uni city now .
    Students are like the same as everyone else there’s good and bad ones most are ok . The good thing about students that they are only in the house about 8 months out of 12 and if you have a bad set they are only in it for a year. I’ve had very little trouble with my students this year so far .
    At the end of the day they are young people who have left home and what to enjoy life cleaning etc is not high on there list of things that they want to do.
    Been in the student game along time now and they are no different now from 20 years back
     
  8. Exfarmer

    Exfarmer Member

    Location:
    Bury St Edmunds
    Be aware that if you rent to students and one droops out and gets a job rates are due , the full whack!
    My sons house which was a rodent infested hole in Nottingham had just this happen. The landlord was a fraudster at best.
    The landlord suddenly demanded they pay rates, their rent agreement made no mention of rates and knew it was a con as students don't pay rates. However one tenant had left Uni. He looked into the situation and rates were technically due, thanks to his occupation, but the landlord had received no demand, how did he know? he was now working in the housing department!
    Further he discovered that the Landlord was claiming the house was the sole living accommodation of his disabled daughter, who did all the management work on the property, and said daughter was not only receiving housing benefit for living in the property, which she most definitely did not, but I never saw anything about her that lead me to think she had any disability at all!
    It was a scam from start to finish
     
  9. Rowland

    Rowland Member

    Location:
    Northeast England
    Is it not up to the resident of the house to pays council tax . When I lived in a rented farm I paid the council tax not the landlord.
    When I rent to students I sort the council tax exemption out for them and explain what would happen if they dropped out of uni . I also explain that even if they do drop and go home they are still liable for the rent due over the course of the year they can find a tenant to replace them or at cost I can sometimes find a one it’s all in the agreement.
    It’s not that different to farming buy a load of cattle or sheep one or two will give you problems or even die same goes for arable farming one or two fields will be problematic machinery will break down there just problems to sort out over come and learn from.
     
  10. Lazy Sod

    Lazy Sod Member

    Location:
    Warminster
    One of my sons has 3 properties in a uni city. 2 have 4 bedrooms an 1 has 6. The uni is the tenant of 1 of the houses, which makes things easier.
    With the other 2, the students have an agreement which makes them all jointly and severally liable, and they all have to have guarantors.
    He's formed a limited company to do this, which I understand has some tax advantages.
    Edit: Forgot to mention that he also has a flat and a house let outside the company. My other son moved into a larger house and kept the old one to let out. I understand that all their tenants are satisfactory.
     
    Last edited: Jan 11, 2019
  11. solo

    solo Member

    Location:
    worcestershire
    As of now the house will need to meet an energy performance certificate standard of at least a grade E in order to be able to rent it out. I would cost that into your budget if it needs upgrading. Annual gas safety certificate will be required as well as working smoke and carbon monoxide monitors. Kitchens and bathrooms are usually high wear and tear along with floor coverings. Downstairs is better with hard surface flooring and carpets upstairs. If you use an agent to fully manage then fees are usually about 10-12% per month. They then take care of collecting rent and property inspections. This is the route I would take if you are new to renting; at least until you find your feet, as there can be all sorts of tenants and issues to resolve. Tenants can be good and a pleasure to deal with, but on the other side they can also be poor and their manner of living standards may not live up to your expectations. I have managed several farm cottages over the last 20 years because it comes with the farm but I personally wouldn’t choose to buy and let.
     
    JCMaloney likes this.
  12. JCMaloney

    JCMaloney Member

    Location:
    LE3 9EU
    solo likes this.
  13. Rowland

    Rowland Member

    Location:
    Northeast England

    In my student houses I’ve started to include heating water internet electric etc in with the rent it means I’m in control of the utilities .
    The rent reflects the extra cost of the bills and as said before the students are normally only in the house 8 months.
    I do this as the students when they pay the bills don’t use the heating much so they have wet clothes on radiators every where all the windows closed which means the house is cold and full of moister so you get black mould every where , parents tend not to like this and no matter how many times you explain the reasons it’s there they don’t believe you . They just think your a thieving tw!t and full of sh?t
     
    rob1 likes this.
  14. chalk farming

    chalk farming Member

    Location:
    North Hampshire
    As above really. Don't go for the bottom end of the market the more you charge generally the better the tenants you get. Go through an agent it may cost a bit more but they have to do the dirty work, collect rent and inspections etc. Be anonymous to the tennant makes it easier if you need the property back for any reason, no tugging on heart strings because they have become your new best mate. Be reasonable about things if something needs doing just get it done (within reason) it's for your benefit in the long run. If they miss paying the rent act quickly the laws very much favour the tennat, the longer you leave it the worse it will be.
    I say this from experience, I used to half own a property with my sister she became too friendly with the tenants made things a nightmare when we needed them out.
    The wife and I have since let out property and have I think been firm but fair with tenants. The tenants have to realise that they are living in your house and if your circumstances so will theirs.
     
  15. Rowland

    Rowland Member

    Location:
    Northeast England
    Use an agent to find a tenant but not for managing your property they won’t get repairs done.
    Say there’s something a miss tenant rings agent and tells them agent rings trades to repair problem often tradesmen never turn up and the problem never gets fixed the tenant gets peed off ,the agent is unaware and isn’t bothered. Get a good set of tradesmen you can call on including a handyman so you can call them when there’s any problems go yourself to see the problem as quickly as possible you may be able to fix it easily. This is from experience and you get to keep an eye on your investment.
     
    oil barron likes this.
  16. oil barron

    oil barron Member

    Location:
    Aberdeenshire
    ^^^

    Deffinately this. The agents are terrible at fixing things and take the tenants side when rent doesn’t get paid.
     
  17. Dman2

    Dman2 Member

    Location:
    Durham, UK
    Good tenants are few and far between
    You can get left with a load of sh!t ( literally )
    20170105_145522 (2).jpg
    This was 1 of 3 loads that a girl left behind after just 6 month
     
  18. Rowland

    Rowland Member

    Location:
    Northeast England
    Can I ask a couple of questions?
    What is the rough value of the house where the tenant was ?
    How much was the rent?
     
  19. We do both as a trial.

    Actually our local agent Pennine letting is spot on & demands the house is 100% full spec.. But then carefully selects the tenant, checks & photographs the house every month. Any work that needs doing she is straight on it with her own trade contractors. We've been lucky but any bad tenants are evicted. Pennine letting seem able to get a higher rent than we acheive which allows a margin even after the higher maintance & commision costs.

    We've had good results doing it ourselves but Pennine letting makes life a lot easier.

    I've done my share of pulling out cat dropping soiled carpets & even had to sort out a house where the Lady of the house had been locked in her bedroom & used the carpet as a toilet for two days, (nurse 30 years old with excellent references, crazy body builder boyfriend did not pay her rent either).
     
    Rowland likes this.
  20. Rowland

    Rowland Member

    Location:
    Northeast England
    After you have removed all the rubbish what have you done with it now?
    Would it not just be easier to get a skip on site ?
     

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