To ask what mistakes you have made as a landlord?

[Ditheringdooley]

Finding ourselves in the position of being a landlord for a 2 bed flat in London. Have not done this before- after 6m empty during lockdown etc we now have it on the market and are doing viewings.

Please share any lessons you have learned - things you would do differently this time?

Will be managing it myself. It is in a block with a managing agent who manages the building (well, mostly just passes stuff back to us so I’d rather not pay 2 sets of agents to not do their job).

Any wisdom gratefully received (and horror stories shared if it’s cathartic for you!).

Don’t let to diplomats.

Don't take any sob stories regarding non payment of rent and if they end up on benefits get direct payments going immediately - in fact write it into the contract.

Get rent guarantee insurance. The tenant checks they’ll do will in itself minimise the risk of a dodgy tenant (ie if they pass the checks you’re unlikely to ever use the insurance), but still.

Oh and check the terms of the rent guarantee insurance & your landlord policy. We had that all in place but turns out it is a LOT more difficult to claim than it would seem.

No pets. And don’t necessarily go for the highest rent. Taking a reliable, clean, stable tenant at mates rates is better than dysfunctional ones paying more rent.

Get the right insurance, yes. But also, be massively in top of utilities, make proper records of check-in and checkout readings, and assume your utility provider will utterly fuck things up anyway. Phone them to make sure that your account and the tenants account are separate, and check in with the tenant to ensure they understand they have to set up their own utility account and pay it. We've pretty much lost our income because the tenant was foreign, seems not to have read their contract and didn't open any red letters. They had their power cut off by EDF, who then automatically install a top up meter. This costs tonnes of money for the tenant, who is moving out as a result of their own fuckup, and we can't let the place with a top up meter.

if they end up on benefits get direct payments going immediately - in fact write it into the contract.

Again, check your legal rights and this is another unlawful clause.

Payments have to be made direct to the claimant, the landlord can only ask for direct payments if the tenants have rent arrears of 2 months, or 1 month if they’ve had arrears in the past. As soon as their rent arrears are cleared the landlord has to inform DWP so that payments revert back to the claimants.

Just be a decent human being and not a complete knobber. When DH and I moved out of rented (that we had lived in and treated as our home for a decade) we asked what the landlord would like us to do. He insisted, absolutely insisted we got the carpets professionally cleaned (we were going to anyway). We also repainted every room in the same colour it had been in check in, weeded the garden, mowed the lawn. Cleaned and disinfected every surface.

On checkout day he came in, nodded, said it looked nice and then said he was going to rip up the carpets the next day as he'd always wanted to put laminate in! I know it's petty, but why insist we make ourselves £300 out of pocket to clean the carpets if he knew he was just going to rip them up?

Also, he threw a hissy fit about the fire surround being broken and tried to deduct it from the deposit even though we'd noted it with the letting agent years before and on every subsequent inspection and he'd done nothing about it.

Rant over, as you were.

@AWiseWomanOnceSaidFuckThisShit thanks :)
Maybe a better way of putting it is if something puts you off someone, follow your gut. Even if you think you're being silly.

I have been a landlord for 4 years and have had no problems at all, touch wood (just wanted to start with some positivity!). My letting agent had been fantastic but not sure I would want to manage it on my own. My advice would be (and I have noticed this when I was a tenant too), if the flat is well kept when they view it and move in, you will attract a tenant who wants to take care of it.

Our tenants have my contact details. We have full agency services but I'd rather sort something myself ASAP than leave a problem to get worse.

We have a British Gas insurance policy and I've said if they have a problem to report it if they can't get hold of me and pay the excess and I'll refund them ASAP.

We sort out the big things quickly and in return they sort out the little things themselves.

We used to rent out my dads microscopic London house to help cover the nursing home bills.
We did the following:

1. we didn't use an agent because I thought it was a total rip off what they were offering to charge us to do basically nothing or at least moving I could do myself. We did everything ourselves, we advertised it on Right Move, we found the tenants, we did the credit checks, references, inventory not not difficult as there was nothing it, tenancy agreement, deposit scheme, energy efficiency cert the lot. It cost surprisingly little we were happy because we choose good tenants they were happy because we did everything at cost so they thought we were very straight and fair (which we are). It cost them considerably less than it would have cost them going through an agent.
2. My dads house was immaculate when they moved in, completely redecorated, quality curtains carpets etc and all appliances fittings etc were a good quality brand and brand new. The tenants liked this.
3. We added a few personal touches, silly little things that were not overly expensive but all who looked at it liked it they felt it looked like we cared about the house and wanted it to be nice for the tenants; a long mirror, coat hooks behind the door, curtain tie backs. We were overwhelmed with people wanting rent it most said it was the little touches that they loved.
4. We treated our tenants fairly, any problems we or someone else depending what the problem was were there within 48 hours ideally quicker they were 200 miles away.
5. Eventually my dad ran out of money and we had to sell the house we kept them informed of the situation all the time and offered them either three months notice to leave or stay and show prospective purchasers round and we would reduce the rent by £100pcm. They choose the latter and everyone commented on what great tenants they were the purchaser was very keen that they stayed but the tenants good a bad feeling about her and declined. When the house was finally sold the agent and the purchaser said it was immaculate inside.
6. As hard as I found we were quite fussy about the tenants. They had to be professionals on a good wage, I had POA and the solicitor said I had a legal duty to get the best possible tenants/rent this was not the moment to be altruistic.

They have moved three times since and said in an email we were the best landlords they'd ever had and that they loved the house and missed it. We used to be tenants ourselves so we treated them as we would like to be treated (and often weren't) ourselves.

Make sure you know of the tax implications. You can’t deduct the whole mortgage payment from the rent which is a common misconception. If you’re doing it without an agent don’t be too ‘nice’ treat it as a business and make sure you and tenant know where you stand. Keep everything in writing. Even if it’s email or text.

I’ve done it all myself and find it fine tbh. Reference checks through employer and asked to see payslips and ID from prospective tenant.

Make sure that you let utilities and council tax know that someone is moving in, don’t rely on tenant doing it.

Use the deposit scheme properly
Don't get suckered in by a sob story
Trust your gut

Don't allow subletting. I had some excellent Polish tenants. Who asked to let the spare room to someone. Escalated from there until I had to issue a notice to quit. Left the place in a state.

Get the locks changed between tenants.

I'm not a landlord but my parents were, and I've private rented for many years.
Always remember that though you may own the property, they are paying to live there, you're not doing them some wonderful favour. As someone else said it's a business thing, a service really. They're paying you money to live in the flat.
From your post I don't think you'd have that attitude, but I've known a few landlords who think they're bestowing some kind of wonderful, kind hearted favour on their tenant by 'letting' them live there, and forgetting they get money for that in return. If you don't get the money, well that's a different matter to be dealt with accordingly!
Write everything down and take photos, and make sure your tenants know their side of the bargain and what happens should they fail to stick to it.
If you do use a letting agent then keep in touch with your tenant yourself, I reported a roof leak to an agent...... Who did sod all about it for 6 months despite repeated emails. Eventually after a very cross phonecall to the agents the landlord was contacted, and lo and behold the agent denied all knowledge - good job I had a few months worth of emails to prove I'd reported it! It cost a lot more than it needed to have and had I the landlords contact details I'd have by passed the agent after they fobbed me off with 'we're trying to contact the landlord' and gone directly to the landlord myself.
As a tenant I've provided references from previous landlords - I'm not sure if you can still ask this but it's worth doing if you can.
As a tenant I paid my rent and just wanted to be treated fairly, one landlord pratted around over a broken boiler, wanting the cheapest deals etc (fair enough but....) I bought heaters myself but it was the only hot water, I spent months boiling water and kettles to have baths (no shower) and wash up etc and, I gave notice and moved out before it got fixed! I paid my full rent on time, and the landlord wasn't inconvenienced at all by the lack of boiler, I was, so he really had no cause to fix it fast. Doubt he'd have lived like that for long to save a few quid.
Apart from those two, one of which it wasn't the landlord, I've had pretty good landlords who've been fair and made sure that they keep their end of the deal, and I've kept to mine.
One allowed me to get a dog after I'd lived there a few years too and they knew me. I stayed in that house 10 years because both me and the landlord were happy. They let me put pictures up, decorate (pre approved colours etc) and fixed things promptly. They also understood that I work, and in order to earn I can't take random days off for stuff, they always made sure that appointments were convenient to me too, or went to meet tradesmen themselves if I couldn't be there.
My parents looked for someone like me, that wanted somewhere long term (more likely to look after a place) and moving out for reasons like landlord selling or moving areas for jobs etc. And they got references, and we're clear about what they expected from the tenant.
Good luck! Good tenants do exist and another good landlord in the mix is no bad thing!

Definitely insurance for loss of rent. We had a massive leak which meant the flat had to be completely gutted. It was empty for 9 months whilst the work was done but we weren't covered.

Regular inspections.

Let an agent advertise for a tenant and do the background checks.

Be firm sometimes. We've had tenants that demanded a top of the range shower, new boiler rather than repair then got stroppy when we put in a mid-range one!

Good communication if you're managing. I set up a whatsapp group so if they need anything sorting they can drop me a line and everyone is in the loop. Try and sort problems as soon as possible... it makes for a better relationship.

I let unfurnished now after some disasters. I find tenants are less inclined to trash their own stuff.

Most of our tenants were great. We had only one who caused any damage (deducted from her deposit, and her tenancy was not renewed).

Ask for previous landlord and current employer references and check for yourself (by phone) that they are genuine. You will encounter fake references, smartly dressed shameless liars, dodgy vibes etc; just trust your gut and sidestep.

Make sure the building and fittings are properly insured for letting.
Inventory everything down to the last teaspoon; and photograph all furniture, fittings, carpets, etc; even the bathroom.

I recommend you don't aim for being pals with tenants; better to keep it polite and professional and stick to the absolute letter of landlord correctness. Gas safety checks up to date, soft furnishings fire certificated, always serve the right tenancy forms at the right time, properly signed and dated. Keep a list of recommended tradesmen for emergency repairs.

How you present the house and contents sets the tone you hope they will live up to, so make sure it's sparkling at the start of  tenancy.  I  provided a one-off introductory  set of basic cleaning materials,  paper towel , bin bags,  fresh soap and loo paper in the bathroom.  IKEA is a great source of  cheap plain smart sets of crockery, pans,  glasses and , bedlinen etc. 

Keep records of all expenses and every tenant communication.

Agents can be pretty rubbish...don't trust them. They don't tend to bother to get things fixed, or check workmen have done the job properly. Also, agents are often rude and condescending towards tenants. That doesn't help the relationship.

Do not rent out any property you are emotionally attached or invested in. Each one of my tenants has treated my house appallingly from damage to rats and it broke my heart to see the home I had loved and worked so hard on being ruined. This prompted me into a reluctant sale. I will by another property but will treat it as a business and not a home.

[quote Ditheringdooley]@Socksey yikes- that would ruin us! Was insurance any help at all?

Thanks - trying to be very by the book in terms of obligations at the outset and making sure we have done everything to fulfil requirements.

Someone not paying and not being able to evict is a concern but not much you can do about that (except insure I guess).[/quote]
Yes.... pretty much did me too.... thankfully I had a lot 9f unused credit cards... ideally you should have a contingency.... but normally plan for 11 month occupancy and regular redecoration etc

I had awful tenants and will never do it again. Not all of them are bad but please get checks.

Agreed to a dog. Next thing we knew they had two.

Put yourself in the shoes of the tenants. If something needs fixing, imagine yourself being in their position. Sort stuff out fast. We had an agent at first but I ditched them because they were too slow. Find yourself some tradespeople you can trust. I find it stressful though. Generally something big goes wrong just when I'm really busy myself!

Also, I think some of the inspection regimes of agents can be a bit much. Every quarter I think is intrusive (speaking as a former renter), unless there's reason to be concerned.

We've been on excellent terms with the tenants we've had (to the extent of visiting them when they moved back to their home country. and our most recent tenants have found us a new tenant to move in straight after them because they recommended us to their friends and vice versa). We've perhaps got lucky. But treating them well has definitely helped.

I'm a reluctant landlord. I feel like it's a very lucky position to be in to be wealthy enough to own a home that you don't need to live in, and can make more money out of (i don't know your position - but this is ours).

We have rented out our own home, which i think is easier as you're usually renting to people who are in a similar financial bracket to you. But we have also rented out a flat that we bought as an "investment". The tenants who rent that are in a lower income bracket to us. And so I try to cut them a break because - despite being hard workers - they have much less socioeconomic clout than we do. and, as others have said, they are paying us for a service so we try to provide a good one.

Hope that helps. Good luck.

@TheCountessofFitzdotterel

If people smell of smoke and swear they only smoke outside/are giving up/don’t smoke themselves, they’ve just been in a smoky house, they’re lying.

Can confirm. (Never been a landlord, but have lived in flatshares where we advertised for flatmates).