To ask would you bother being a landlord in this situation?

[Letitrow]

I am fairly unexpectedly being posted abroad for 3 years with work, DH and our DC are moving too so our 3 bed house that we own will be essentially vacant for that period- we definitely want to move back there after this posting though so aren't looking to sell.

As we are in the fortunate position of having all expenses paid for the move, including not having to pay accommodation, I'd love to rent it out whilst we are away (rental properties are in great demand and short supply where we are) for a very small charge. Be more than prepared to invest of course to make sure it meets all of the standards for rental, the boiler is only a year old and everything maintained to a high standard and have family nearby who could help assist if anything needed doing 'in person' and we'd obviously pay for repairs etc.

Only issue is I don't want to come back at the end and have to go through a lengthy process to get our home back. Even if we were up front for the period it was available for I am aware there are (rightly) tenancy laws that mean it's not always that simple. There's also the risk of damage and stuff but that would be covered by insurance so not overly worried perhaps naively about that, and aware it's only a tiny minority where that happens.

Landlords or anyone really, would you go for it? It seems a shame to leave it empty (well just family and friends going to check on it periodically and run the water etc) for 3 years but similarly could it all go very wrong?

S21 will almost certainly be gone by the time you got back. You'd need to look at the proposed details behind S8 to see if there will be a clause that would apply to your circumstances on your return.

Please don't take advice from here when a lot of people know nothing about LL legislation.

Or could help that family save for a deposit to get a mortgage for own place. It is so hard as all depends on who moves in good luck either way.

If you do decide to rent it out, I would recommend finding a property management company - it will cost you some % but is well worth it for the peace of mind- someone who vets the prospective tenants, makes sure the tenants pay rent but also maybe inspects the property once in a while and deals with any issues, calls the plumber etc since you’re far away to deal with these things. Get appropriate insurance. And fixed term tenancy for sure.

Also something to consider - how much you could possibly get in rent, minus the commission (potentially), minus taxes, minus whatever you need to spend to get the house on the market (repairs, furnishing etc), minus whatever repairs you will have to pay for once you’re moving back. If you don’t need the money (for example I still pay mortgage on the studio flat I’m renting out so I do need that covered ideally) I’m not sure it’s worth the hassle, but that’s just my bitter experience after I discovered a lot of hidden damage after my previous tenant that cost me $$$ to fix.

You could ask your local council if they would like it for temporary accommodation - you rent it to them for 3 years, they put homeless families into it whilst waiting to get them something long term. Atm most councils are having to put people into b&b’s.

there would be more risk of damage with multiple tenants - but your council housing office will LOVE you and might bend over backwards to get the property. And you’ll know that you are helping to make the lives of people forced out of their own homes a little better

I wouldn't, for the reasons given above. There are so many disincentives now; why would anyone bother being a LL. Crazy, because there's such a demand for properties. And of course you shouldn't be financially 'punished' (WTAF? 😂) for going to work abroad for a period and choosing not to rent out your own property. Although of course no doubt the poster who made that ridiculous suggestions would be complaining that you're a greedy LL if you did make money by renting it!

Is it in an area that would work as a holiday let?
No problem with people staying too long, less wear and tear.
There are companies that will manage it for you.

We lived overseas for five years and rented our house out during this time. I didn’t really want to be a landlord, but I don’t think it is good for a property to be left empty for any significant length of time. Our house was quite rural and didn’t attract long term tenants, so we had a few that lived there for a year or so.

It all worked out well until the last one, they quickly stopped paying rent and they didn’t look after the place. I had to take legal steps to remove them, which was largely due to the unpaid rent, but even this takes time. I kept the house empty for about the last twelve months we were away.

They also left the house in a bit of a mess and no insurance will not necessarily cover this, my claim was turned down because the damage was “not malicious” it was more of a lack of care (a lack of care that meant I have to re carpet and redecorate throughout for example).

As somebody said, you have to look at it as a business not your home, we have been back a few years now and there is no trace of the people that lived here X years ago.

My following suggestion may not work, so please tell to ignore 😁 but would it work to put it on air bnb?

Why is it hilarious?

It’s morally bankrupt to leave a property empty in this country. Money taken should be used to convert other properties (other empty commercial property for example) or build new social housing.

If we were swimming in property, and people were homeless, being extorted by the private rental system, I wouldn’t care less if she left it empty for 100 years.

Yes hare agree. A lot of the advice about fixed terms etc will be null and void if an S 21 can’t be served.
Regardless of the end date on the contract if they wanted to stay they could and you would have no grounds to serve an S8 and could be fucked

The stuff about evictions on here is rubbish - if the LL needs the property back they can still issue a s.8. The new laws are to stop LLs evicting tenants for no reason - usually as retaliation or to significantly increase the rent and get new tenants.

Also check with your mortgage provider, most contracts do not allow you to rent the property out unless you have a buy to let mortgage.

I'd rent it out I think. I think morally it's not great to have a house just sitting therefore 3 years and I think it impacts your insurance. Also you could end up with squatters which is worses than tenants.

I know there are loads of horrow stories on here, but we've let out our first house for over 10 years and never had an issue with people refusing to leave. IRL people move out when they are told to. Ask the managing agent to let out on a short term basis (tell people that it's only for a year and then do it 3 times), which might ward off some people who are looking for something more permanent. You have the luxury of being able to be picky so you could set requirements in terms of jobs, wages, relationship status to make it less likely that someone would want to try stay. And set the rent quite high to avoid people getting stuck there. Morally probably also not amazing, but better than just letting it sit there.

What about an Airbnb instead? You'll just need someone to manage it for you, plus a cleaning company but you won't have any issues with long term tenants, eviction etc

The short sighted government have exacerbated the housing crisis by screwing landlords over.

Those guilt tripping you can do one. Don’t rent it out if you don’t need the money.

Is it in an area where Airbnb would be in demand?might be a safer option .

I would let for a fixed term 2 year contract. That leaves time to evict if you need to, which hopefully you would not!
it would be a lovely nest egg that you don't have to do much for and provide much needed housing for a family.

Could you rent it for 2 years
then once you know you are coming back give notice

1year would generally be enough time to get some out even with having to evict them

however I have noticed loads of property in my city especially family type houses up for sale with no chain so I’m assuming lots of landlords are selling up while they can

If the property is empty you will still need to pay council tax, insurance & utility bills if you want water & electricity

It's really not good for a house to sit empty and only lightly heated for three years. Small issues go unnoticed, you're asking for damp, and for problems with things seizing up when they're suddenly being used again.

What about regular maintenance, sweeping up leaves, mowing the lawn, keeping the house looking occupied, or the possibility of squatters?

Yes, there is a risk to renting it out and the issue of wear and tear. If it were for a year I would agree either way with renting / not renting, but for three years, morally and practically, I think that's a long time for it not to be used.

With three years rent, you will easily be able to afford to have the whole thing redecorated on your return, and a new kitchen if you want one.

Use it as an air bnb type. Target companies who can use it for staff / contractors. Depending on where you are based.

although s21 is highly likely to be abolished S8 will definitely include provision for you to get your property back if you intend to move into it. Though as others have said that doesn’t remove the possibility of a protracted legal process to get there.

As others have said, noble as the idea sounds I wouldn’t let it out significantly below market rent as it raises the likelihood that whoever rents it will not be able to afford to move out, and they’ll be forced to wait for bailiffs in order to get homeless assistance from the council.

I think a lot depends on your level of emotional investment and preparedness to redecorate (or more) when you return. If you’ll be devastated by wear and tear etc then absolutely don’t do it.

if you go for it get a good property management company on board, thorough vetting of tenants, be clear upfront it’s for 2-3 years.

Half of mumsnet will think you morally repugnant for leaving an empty house and not selling it and buying again when you get back (!). Half will think you are morally repugnant for being a landlord.

Don’t rent it. The profit is a) in long term capital growth b) in my first year wasn’t that much after tax, insurance, rent insurance (not sure whether worth it but feel too risky to do without), agent fees, management fees etc. Plus a few hundred for “permission to let” from your lender which may only be finite and then you’d have to covert to a BTL mortgage. Plus the cost of storage, moving everything out then back in, redecorating, repairing and replacing. Plus the agro, cost, potential void period of evicting (well) before you need it - or perhaps worse- renting somewhere while you go through court to get it back.

read the govt paper on banning section 21. Actually they aren’t banning eviction for landlord repossession but you’ll get the gist of why landlords are selling up.

One option would be to rent it to a company for 3 years, if you have one nearby. My uncle rented his house in Aberdeen to an oil company and they gave it to a worker for 3 years. You won't have the same problems trying to get it back and tenants are far less likely to trash a property as it will impact their job.

Quite a lot of international companies do this.

Oh and there are specialist insurers who will insure a vacant property but will stipulate what needs to be turned off, and family might have to pop in every so often and document somehow that they have been there and checked it over.

Why should they be punished they’ve got a no oversea and will be coming back

the problem is eviction is a long drawn out and costly process
and they don’t pay rent again court process long and costly even if you win no guarantee you’ll get the money

they can cause £1000’s of pounds of damage again court Ian’s slim chance of recovering cost

you’ll be taxed on it and hit and miss if it will be look after

i was in a similar situation got a secondment for 2 years other end of the country stayed with family left house empty it’s not worth the risk it the law would of protect me from the above I would of rented it out

you will need to advise mortgage company and possibly change insurance as it’s being left unoccupied