Aibu to think mn may not be giving me an accurate overview of renting and being a landlord?

[FlyingElbows]

The chance of a lifetime has just fallen into my lap. To take it I will have to rent out my house to become the tenant of another. I have never done either before. There are lots of mn threads on this topic and, from what I have assessed, renting my house out will make me single handedly responsible for the housing crisis in London (despite being in Scotland) and I will become an oppressed victim of an evil right wing money machine (you're probably right on the right wing bit in this case).

I am really torn on what to do and more than slightly shitting at about taking the leap. Can anyone talk sensibly and rationally about this or do I just have to shut my eyes and jump in?

wits as a tenant that's exactly what you want. Clear communication, a quick response and fairness over the rent. I often wonder why more landlords aren't like this, it would maximise the chances of getting good tenants who will stick around and minimises the time the flat is empty.

I've been a landlord for 10 years now. Not through choice, I moved to look after a seriously ill family member, and it was midst of the recession and after putting my house on the market for months no one wanted to buy it, not even for a 'bucket price'. I found it daunting, but it's actually been OK.

Really, sod anyone who would judge you and doesn't know your circumstances. I was a single parent, young challenging kid, not able to work full-time, scraping together a living, no recourse to benefits, caring for sick relative, living in one room with my child in sick relatives house, crap Ex... Really quite a hard and poverty stricken time of my life - when I was a Landlord!! At one point I thought it might be easier just to default on the mortgage and get rid of the house - become bankrupt.

BUT I didn't, I got a good agent and my negative equity house and rented it out - I asked for families - and I made up my mind to make sure that the house was somewhere I'd be happy to live too.

I got screwed over by one or two people, and had to go into massive debt to do so. There are a few tenants who default on rent - that made me so angry. I was absolutely in tears one time, I had to find over a 1000 pounds to cover the rent once, put it on a credit card, worried that me and my child were going to cope that month. We are not all fat cats with plenty of money to spare.

But, as I still couldn't sell the house, I struggled on and now it's really fine. I always make sure any repairs are done straight away, I look after the house, but as it is through an agent I get a bit of a buffer - not loads of phone calls all the time and it is clear from the outset what is my responsibility and what is their responsibility. Some things you have to take on the chin, fences I have replaced that were probably damaged by the tenants, just not worth the hassle going through court. Cost in repairs and just do them, don't try to skim and cut corners. I get a gas and electricity check yearly, I got the firemen to check the property too before I let it out. I charge a rent that is a bit below what I could get for it, a nicer house than the usual soulless rental, and a reputation for being fair, and in return I can have a bit more choice of tenant.

Just do it, you won't regret it! And in return you can be a nice landlord.

even the thread about landlord hate has turned into landlord hate. Only on MN... Yes, 'all is well' doesn't make a thread but there's no other business where those who have problems get told 'serve you right'.

That said...it is a business and like any other business can go badly wrong. So you must know what you are doing and have plans for the worst. Malicious damage, non-payment, sub-letting, burnt to the ground etc etc etc. Not all of these would be deliberate but all can happen. You need to be able to cope if no rent comes in - you can get rent guarantee insurance but it doesn't kick in immediately.

the buck stops with you, not the agent, when it comes to your legal obligations. For example (England/Wales) if the agent doesn't protect the deposit as promised, YOU can't evict your tenant.

in England/Wales being a landlord is the only business where you must continue providing the service for no payment, for some months at least.

for full MN compliance, let your tenants live in your place for free, give it to them at the end of their tenancy, and don't pay the rent on the one you rent out. All these things have been suggested by some of the loonier tunes. And not all of those are people whose mummy has left them with an unattended computer, although it does get noticeably more common in school holidays.

P.s. It is true about responsibilities. Get a good contract, through a good agent, and a list of what is tenants and your responsibilities.

Basically, repair and replace anything - boilers, fridges, fences, doors, windows. Whatever. As soon as a problem occurs, just do it. It costs 1000 plus a year on these things, but it's just the way it is.

Upkeep of gardens is tenants responsibility - if they want to mow the lawn fine, if they don't, you can't make them. If they don't, just mow it twice a year if you can and cut back branches etc.

Most of these things are made easier by

A) a good agent - they will sort out vetting, contracts. But ALWAYS be clear about what kind of tenant - mine tried to stuff in a lot of male workers, 2 to a room and I said NO - I wanted a family. It's OK to be firm about who you would like, a good agent will check for references and credit checks.

B) Landlord insurance

C) Factoring in repairs / lost rent of at least 1000 a year

D) Electricity, gas, fire safety.

E) Not worrying then about it once it is let, getting on with your life, and take no notice of MN!

@ specialsubject.

Rent guarantee insurance is practically impossible to get for a typical single property as it's only granted for tenants who have a very high income. I've had quite a few tenants over 12 years, none of whom have had enough income to be insurable - seems they need monthly income of 3x the entire rent, which sharers and even their parents generally don't.

Postgrad students are often a good bet - turned down from most places, but aren't too rowdy, have guaranteed income for a few years and won't want to move during that time.

Only ever had one bad tenant, who started complaining about things like an ant walking in one day. I recommended Env Health who came out and confirmed the place was OK, advised me on how to keep it OK, and told her what was expected of a tenant. The courts and the bailiffs were very polite and helpful too.

Agree with joining the NLA, to get copies of good tenancy agreements (including Scotland-specific ones), and other documentation, and a list of what you need to have in place - EPC, gas safety cert, landlord's buildings insurance, etc.

special, are you naive or just chippy? I can't tell.

If you ever read MN - or really any forum - you will see people complaining. On MN, people moan about teachers, lawyers, doctors, MPs, GP receptionists, childminders ... pretty much any job you do, that involves you having contract with another person.

There is nothing special about landlords that means they should be beyond criticism. I am aware you seem to think we all live in the Victorian age, and all tenants should be tugging their forelocks at their LL and thanking them for their charity wot kept us out of t'workus.

But this is actually 2016. The OP didn't ask you to start a sniping row. She asked for reassurance. Lots of tenants - as well as landlords - gave her that, and some tips. Why is there a need to stir up a row?

Yes, if it's a great opportunity then do it.

But understand you will be out of pocket unless the house you are renting is much cheaper than the one you own. This is because you have to pay agents fees (if using an agent and I'd recommend doing so), then repairs and random things like safety certificates, then whatever is left is counted as profit and you pay tax on it. Eg say you rent your house out for 700 a month and rent an alternate for 700 a month. Agents fees would be about 100 and depending on what state the house is in say 100 for repairs average a month (it'll vary massively but if you need something like a boiler repair its expensive). That leaves you 500 which you are taxed on so depending on your tax rate you might be left with say 350, but your other rent is 700 so you're 350 a month worse off.

It's tempting not to use an agent to save money but I wouldnt advise this as they can keep you legal on any requirements like gas safely certificates.

Do it. Everyone on here, even those who mindlessly hate all landlords, would do what is best for them and their family financially. The fact some people despise landlords so widely is usually because of frustration over their own position and envy. Being a responsible landlord is providing a much needed service so you're not doing anything morally or ethically wrong. Just because you are fortunate doesn't mean you're wrong. Go for it!

There is nothing special about landlords that means they should be beyond criticism.

The MN landlords are a very sensitive lot!

I am really torn on what to do and more than slightly shitting at about taking the leap.

Because of some threads you've read on MN?

HowBadIsThisPlease

Do it if you must, with your eyes open, and a full understanding of your obligations. Think hard about the fact that when you let your house to someone you are responsible for their home, which is a big responsibility.

^^this should be rule number 1 in The Landlord's Bible.
Infuriatingly, there's too many unscrupulous twats don't seem to even to grasp that this should be an absolute necessity of letting your home out to someone.

Off school early, robins ? Try harder in English comprehension. I've said nothing in my post that bears any resemblance to what you are reading. No one is beyond criticism.

Sorry to ruin the fun with facts.

I think, in order to talk about 'facts', you actually have to cite those pesky 'facts'. Not just witter about how hard done by you feel.

I am in Scotland and rented out my flat while in England. Get a decent agent and don't expect to make money. Still worth doing to keep a foothold in your home market while planning longer term. I don't think ll hatred is so rife in Scotland as property prices are lower and stable and tenant protections are better. The agent should have a standard contract you can use and will advise on mortgage approval, insurance, ll regulatory compliance.