How to be a good landlord?

[WhereAreMyGlasses]

I'm renting my flat out for the first time as I'm moving elsewhere - what tips do people have for being a good landlord.

I've looked up the regulations on Gas Certificates etc and will be getting them but what are the little things that make for a good tenant-landlord relationship?

[specialsubject]

1. would you be happy to live in the place? (obviously you were, as you did - but are all the little quirks fixed?) As it is a flat, how will they dry their washing without filling the place with mould? Immaculately clean to start with? Not necessarily all brand new but respectable.
   
   
2. 100% on gas safe, deposit protection, all insurances (inc legal protection, malicious damage). Mortgage company informed. Check in and inventory arranged.
   
   
3. leave instructions for the tenants for appliances, bin days, 'block rules' (i.e. where they can leave bikes etc)
   
   
4. be contactable and have emergency cover for when you can't be
   
   
5. dissociate. Your property, but their home. All your stuff out, only visit for inspection with plenty of notice and with their permission.

[wowfudge]

Know the law, know the detail of the AST signed with your tenants. Also make sure you are properly insured. Have prospective tenants thoroughly reference checked beforehand. Make sure their deposit is properly legally protected. Before the tenancy starts get an inventory independently drawn up and agreed/signed with the tenant. Leave manuals for any appliances (boiler, cooker and anything integrated, etc.) in a folder for their reference.

Make sure any issues with the flat are swiftly dealt with for the tenant. Remember it is their home. You may want to have someone manage things for you, but if you do that make sure they are doing their job properly. Do not, under any circumstances, think that because you own the place you can turn up when you like and never, ever, ever let yourself into the flat once you have tenants.

If you have ever rented yourself you will know what you considered good and bad about the landlords you had. I find thinking how I would feel as a tenant is a good way to approach things. Remember it's a business relationship - don't let the personal get in the way of that - you're not the friend of your tenant, it's quite a different relationship.

Hope that helps. Do your research thoroughly and if you are going to use an agency to advertise your flat, look on Rightmove at who appears to be securing lettings in your area and get several to come and look at the flat, give you their appraisal on rent you can command and give you full details of their services/ts and cs. Choose the one you are most comfortable with and who you feel likely prospective tenants will relate to/feel they can deal with.

[WhereAreMyGlasses]

Thanks for this - I've found tenants as I'm moving for work and they're moving into the area. I therefore know what line of work they're going to be in but should still do a credit check, do I need to do any other checks?

I haven't ever rented except when I was a student and seemed like a totally different kettle of fish

I'm researching ASTs at the moment and drawing up one. Am up to date with deposit protection and will be using Deposit Protection Service as I think that's the only free one.

I am definitely going to detach, to be honest I won't be around in the area unless I specifically go to inspect it.

Insurance, I assume this is landlord insurance not anything else I haven't come across when researching on the web?

[specialsubject]

do you have an agent? If you won't be around you really need one to inspect occasionally and act as intermediary. Make sure they are ARLA at least and ask tough questions. And make sure the deposit is properly protected because it comes back on YOU if they get it wrong.

the insurances you need are
landlord; buildings and contents (you have carpets and curtains)
malicious damage: some big names don't include this
legal expenses; in case you need to evict, which means court and bailiffs. Also liability cover.
emergency cover: for when the boiler goes wrong and you are on holiday
rent guarantee; if you can't cover the rent if they stop paying. To get this you will need to reference them fully.

they should be earning such that the rent is no more than 40% of their income. If they are on HB then that may still work but you need to check with your insurers.

[specialsubject]

sorry, just seen you are DIY. Be very careful with this, could go big time wrong.

[WhereAreMyGlasses]

With regards to an agent is it really worth paying them to manage? I am not far away in terms of getting there and could go down on any weekend and after work / coming back before work the next day at a push.

I know what they earn as they do the same work as me just in a different part of the country (as I've just moved away from there).

[WhereAreMyGlasses]

specialsubject I'm not sure if you're a landlord but it looks pretty simply to do referencing checks through a company for approximately £50 - do you have any recommendations? I've found this one which looks pretty sound www.upad.co.uk/tenant-referencing

[rhubarbcrumbleplease]

I'd make sure you have a trusted DIY expert close by.
If your own loo goes wrong, e.g. the flush is tricky, then you'd probably wait a few days to fix but IME tenants want things done immediately. Emergency call outs are pricey.

[wowfudge]

If I were you I would use an agent's management service, at least for the first few months. Once things are more established and you are more confident about things you can then take over.

[WhereAreMyGlasses]

What would I be using them for though? I don't even know what they do that I couldn't do - surely if something goes wrong and there's an emergency call out I'd still have to pay for it anyway?

I can get there in 2.5 hours if need be so do I need to be right on the doorstep?

[specialsubject]

Yes, I'm a landlord but I get my agency to do the referencing, that way I know my rent guarantee insurance works. But there are others on here that may be able to answer your question.

you are right that agencies don't do anything you can't - but will you always be on call? Do you never go on holiday? Do you have no possible family responsibilities? Are you happy to turn up, find things that need doing and stay overnight nearby to sort it? Tenants don't expect responses in seconds but they can't be left with a problem for a week until you get home from a trip.

the answer to these may be 'yes', of course.

I live 10 mins from my rental and still have an agent and emergency cover.

[wowfudge]

I agree with specialsubject on this: yes, you can do it all yourself and probably save money, but that's not the only thing to think about. A major issue is the time it takes to deal with it. If you don't live nearby and have your own home to look after, it could be trickier than you think. Also, I think a lot of tenants don't actually like having to deal direct with the landlord - they actually prefer going through an agent. It may be fine while it's all new and exciting for them, but if there's a problem it could be different.

[HelloLA]

I'd definitely use an agent, unless you have a reliable network of contractors and you'll be available 24/7 to address any real emergencies and authorize repairs. You don't live locally, and, as others have said, what are you going to do when you're on holiday or busy at work?

As a tenant, I don't expect everything to be fixed instantly, but I do want to have a proper emergency contact for when part of the roof comes off during a storm on Christmas Eve. Or when the boiler packs up during a freezing snowy March. Or when I wake up at 4am to find the kitchen flooded from a burst pipe. Those are the times I welcome having an agent and a professional response. I don't want to call your home phone at 4am and hear you freak out about it too. Or, worse, get no answer at all.

[HelloLA]

Oh, and also: if you're renting it out furnished, please do a hardline purge of all junk! Items that previous landlords have left us to look after: towering stacks of mismatched eggcups, stained bedlinen, broken hoovers, portraits of their deceased pets, John Grisham book collections, scrofulous shower curtains, a collection of slate tiles. It all takes up cupboard space and makes me feel like I'm living in a semi-abandoned second home.

Sturdy furniture, working appliances, basic kitchenware (if any), and a general air of blank canvas is much preferred.

[wowfudge]

A word of advice: don't let it as furnished. Kitchen appliances are one thing, furnished is something else entirely and should you ever have a void period you won't be able to get the council tax waived if it's furnished.

[WhereAreMyGlasses]

Thanks for the advice.

I'm letting it furnished but it's practically empty except a kettle and some plates at the moment. I don't know where I'd get rid of all the furniture and the tenants moving in would then have to get new stuff too as they have nothing at the moment. It's a strange situation as I'm guaranteed they're going to be there for at least 2 years as I'm also contracted for two years in an alternative location. As I said I do the same job as them but have just been moved somewhere else in the country, but can get back in 2 hours if needs be.

I have investigated agents, what is the standard fee? All the ones I've been looking at have minimum 10% monthly rent + VAT.

[Sizzlesthedog]

Honestly I think you need an agent. Some do full or part management.

They sort out all the rent collection, which I find easier.

Things will go wrong, tenants do not treat the property as you would.

Having the agents to guide you is worth the monthly fee.

[specialsubject]

that is the standard fee, if it is any consolation it is tax deductible.

make sure the furniture meets the fire regs (it would have to be very old not to do so). If your tenants are happy to take it on then fine.

also take note of HelloLA - owner-occupiers can also have these problems but are able to take their own action. Tenants have to contact agent or landlord, and the Christmas Eve boiler breakdown is not unknown.

BTW most councils (except the rich central London ones) are stopping the council tax waiver for empty properties so that makes no difference.

[HelloLA]

If you do rent furnished, and without an agent, then get a professional check-in inventory done: one with photos, careful detail, and signed by all parties (including the inventory clerk). Actually, this is probably a must even if it's unfurnished.

Recent case studies of disputes (available on the deposit protection schemes websites) show that landlords who try to deduct don't have a leg to stand on unless there is absolutely watertight evidence that the damage didn't exist prior to the tenancy starting. If you need to deduct for damages, the burden of proof will be squarely on you.

[justjuanmorebeer]

Use a reputable agent, ask around for recommendations for a good one. Ask your tenants afterwards what their experience of the agent was/is. I have various local agents that are so bad I refuse to even view properties with them to give them my money. As you already have your tenants your fee should not be much more than the check in, inventory and then monthly management fee.

As a first time LL is probably is important really that you do get it fully managed.

If you are furnishing it for them (?) ask them what they like beforehand colours etc so they can feel at home.

Be honest with tenants about anything at all that happens, deal with problems and repairs swiftly but otherwise leave them alone.