Renting out a house

[Bill]

A relation is thinking of renting out his house for a year or so while he works away. He has had a very tentative contact with a local estate agent who has quoted the possible rent and offered to manage the whole arrangement. The agent hasn't seen the property.

My immediate thoughts were about the state of the property. It was originally bought with a plan to refurbish it to a high standard, but he hasn't had time to start. It has been fine as-is as a home, but, for example, many of the interior doors don't close and are visibly out of true. 2 surveys 10 years apart said that this was due to historical settlement which has now stabilised and is no longer a problem. There are other problems with things like garage doors that scrape on the path, soakaways that need investigation and so on.

It is his main home and he needs to be able to return to it after the current job.

We can get the garden tidied for him and do small jobs so it looks OK, and I might be asked to get involved in meeting one or more estate agents on site. Is it likely that he would have to get all the doors right before it was rentable? What do these inclusive estate agent deals involve? If a tenant is installed and a light bulb needs replacing, is the agent likely to call in a contractor at great expense?

Any comments from anyone who has experience of this would be very welcome.

[Tim Watts]

It will need to meet certain minimum standards - smoke alarms, and gas certification being the first 2 I can think of.

Agents generally do not handle light bulbs, but more serious electrical problems will be farmed out to a contractor.

[tabbypurr]

Letting agents are never good.

bed & bath doors must close, others less important. Failure to drain is a health issue, so that needs looking at. The question is whether that can be done before or after move-in.

need to read up on the law on that then, plus what the agent's contract says about it

If it's a halogen security light out of reach, the tenant can't be expected to know which bulb to use, how to install it, have a ladder or climb it, so yes it would be farmed out at daft expense. This is an area where landlords typically get burnt.

It's like anything in life, if you engage in business without knowing what you're doing you'll get taken advantage of.

NT

[Theo]

IANAL but I don't think door fit is likely to be an issue unless it's a House of Multiple Occupation (HMO) - ie rented out as rooms - which requires higher fire safety standards. I think three-storey properties also require higher standards, BICBW.

OTOH tenants are likely to complain about eg blocked drains so it would be well to fix things like that up in advance.

Ask the agent for a copy of the tenancy agreement, as well as the agency agreement. Typically the tenant might be asked to do things they are provided with tools to do the job for - eg mow the lawn if you give them a lawnmower - but not things that require training or risk (eg clearing the gutters from a ladder). Those things expected of the tenant should be in the tenancy agreement.

Theo

[ss]

From what I have been told the less electrical things you have if renting furnished the better, If the tenent cant work something properly then it usually means a call-out as they will claim its broken, my son got hit with some expense when his tenant screwed with the settings on the central heating then claimed it wasnt working.

[charles]

My daughter & son-in-law let ther house to some nice Spaniards - who wnt home for Christmas and New Year and turned the heating off before they left. The house took nearly 6 months to be made habitable again. Sensibly, they had told their insurance company that the house was being let.

[spuorgelgoog]

Any property is rentable in any condition, but the quality will affect the rent achieved and the calibre of tenant. Although a good well maintained pr operty is not a guarantee the tenant will respect it, if the tenant thinks the landlord doesn't care then the tenant is unlikely too either.

In many cases yes. You should replace all fancy lights with standard BC bat tens and pendants. Paper ball lampshades can be had from B&Q for £1 to pretty them up.

Owain

[tabbypurr]

not legally

and that's not good news.

NT

[bert]

Electrical certificate also.

Don't accept DSS tenants at any price. Ask the agent what vetting of tenants they carry out. Be aware of the Disputes Agency when it comes to handing back the tenants deposit. Make sure the agent does a through inventory with photos before and after the tenancy. Read the tenancy agreement also. Then you will understand what the tenant is expected to do with regards to day-to-day maintenance. Supply the tenants with copies of user instructions for all appliances, Ch, alarms etc. but don't give them the bit on how to change the code on the alarm (and make sure you know how to get engineers access to reset it!! Make it a condition in the tenancy that the code be left as found

-then nay cost can be reclaimed under the Dispute Service. Be a reasonable landlord and if you are lucky you may get a reasonable tenant. It has worked for me so far :-)

[Chris Green]

Yes, I'm afraid so in general. We have a rented flat (i.e. we're the landlords) and it's mostly handled by an agent. Things like the annual gas inspection cost a *lot* more if I let the agent do it all rather than doing it myself directly with a 'gas man'. I think it was something like £150 via the agent versus £80 if I arranged it myself (with the same bloke that the agency used).

[Bill]

In message , bert writes

Thanks, Bert, and everyone else. I'm cobbling together a resume of the various points for him (and me) to read and digest.

I had a look at the house again today, and think he really will have to get some electrics sorted out (eg the fridge is on an extension reel in a lean-to), and perhaps the soakaway that takes all the water from the house gutters. The main house foul water drainage seems separate and OK.

[Davey]

From personal experience:

If you really care for something, remove it from the house first. The more valuable to you it is, the more likely it is to be damaged or nicked. Make a very, very thorough inventory, with photos. If the first rent is late, start proceedings immediately.

If you don't use an agent, then you have to provide the 'phone number of somebody who can respond quickly if there is a problem. This might be your number, in this case. There are also rules now about putting the deposit into a special protected account, but that is too recent for me.

[Davey]

Both will need to be sorted, yes. A proper certificate of electrical safety would be a good idea, if it isn't needed already.And don't forget to tell the insurance company that it will be let.

I suggest joining one of the Associations, such as The National Landlords Association, they can give you a potted version of legal requirements:

Worth a look even if you don't join.

[David]

Depends on location and agent, but our annual gas check cost £50 through the agent.

If you live close to the property and you are strong enough emotionally to deal with difficult issues with difficult tenants then rent the property directly.

If you are any distance away (or don't want to be always on call for the smallest thing) then employ an agent. You have to have (just like any business) cover for sickness and holidays if you are managing the property yourself.

Expect the property to be treated with less consideration than you would use, and to need refurbishing after any rental. You may be lucky, of course, but set your expectations realistically.

Cheers

Dave R

[Davey]

Agreed on all counts. We had to restock with brooms, brushes etc after several successive rentings, as though the departing tenants could not be bothered to go to the hardware shop themselves for their next places.

[Tim Watts]

And price it in to your plan.

If you can keep tenants for 2-3 years, then you should be doing a full repaint anyway between tenants - so scuffing and a few dings will not matter.

If you expect to rent to families, do NOT have carpets in the lounge, kitchen or loos. Unless you factor on replacing these or choosing "university grade pre-puked-on" patterns.

OTOH if you are targeting upper middle class professionals without kids, then light carpets throughout may be the order of the day.

Make sure everything is robust and well fixed - no loose taps, rails and so on. It has to survive reasonable use without a mile long list of caveats (which you or I might be able to tolerate in our own homes).

Appliances: either go cheap and replace often (and thus not mind if they get knocked about a bit) or put decent stuff in. Depends on the target market.

Find a good plumber, or ideally 2. Ditto electrician. Either put on a retainer, or give the names to the tenant with instructions to call directly if they cannot get hold of you. Sod's law says the heating will blow up in January when you have nipped off for a holiday. Better they call someone you approve of than a cowboy - or the most expensive firm in the county!

You need the electrician and plumber anyway to do the required safety checks, so that's a good time to meet some.

[Jonathan]

I pay £50 for mine

Jonathan

[Chris Green]

Mine's in London so would expect it to be pricier. I just checked and my memory was right £80 paid direct to the gas man, proper invoice and everything though.

[spuorgelgoog]

And only ever use white or magnolia paint, which will be easy to match.

No rented property should ever have carpet in kitchen or loo.

yeah, the carpet in my room, err hall of residence, survived a wastepaper bin fire

Freestanding white appliances always quick and easy to replace and can often be got second-hand or scratch-n-dent.

A new cheap stainless-steel sink can also do wonders in freshening up a kitchen.

Owain

[Handsome Jack]

Davey posted

But remember that while people are always saying "you have to have this by law, you have to have that by law", it isn't necessarily true, or is only true under certain conditions. I spent years installing and maintaining CO monitors before discovering they weren't required in my house after all.