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?

If you are going to rent it out you must rent it for market value, not a small fee. The tenants aren’t baby sitting your house. Can’t you let it on a rolling yearly let for three years on the understanding it will need to be vacated? Got to be better than getting squatters in your absence surely?

Can you air bnb it?

If you let your house meet the tenants first.
I didn't meet ours until eviction.
I knew immediately that the guy was dodgy.
Our agents were useless.

And I don't feel guilty that my house is now empty, I didn't scrimp to pay my mortgage for 30 years to have damage and rent arrears of £20k with no comeback.
If the government want people to let homes then they need to safeguard landlords as well as tenants.
I wanted our tenants to have a lovely home, they didn't give a shit!
Never again.

Yes of course rent it out fixed term.

I don't understand why you'd martyr yourself and rent it for a low price though. Just go for market rent, fixed term, get a decent tenant.

Whenever I've offered things below market price you get more dodgy people,not less. If the home is worth less to them more risk of not paying and destroying it.

Not necessarily true, heard plenty of anecdotes of people who rented higher-end properties that were left in a shit state because they don't care about losing deposits etc.

Rent at the market rate though, you don't owe a stranger a favour and they would then get used to the lower rent and struggle to move.

No, it won’t do that. There will be appropriate grounds under section 8

Eh? I don't disagree with your point but you've misinterpreted what I said.

Offering at a lower price doesn't decrease the likelihood of a non-payer or someone who will trash the place.

That doesn't mean people paying more won't also trash it.

Currently, Section 8 allows for repossession of family home as long as you tell the tenant at the time of letting that you intend to return. Think it's ground 1 of the current legislation.

It's unlikely this will be removed in the new S8 which will take over from old S21/S8 but they may include additional clauses such as providing an exact date. I imagine there will be a transition period where ASTs signed under the old system are exempt from new requirements, but I don't know for sure.

S8 evictions are currently taking months (some well over a year) due to court backlogs. But hopefully this will have been dealt with in three years time - unless it's got worse. The state of the UK at the moment, who can tell?

We rented ours out for several years while overseas, but corporate lets to foreign employees only, as advised by the lettings agent. We’re in SW London so don’t know whether it’d be an option elsewhere. We had no problems - apart from one lot (we had French, German and Japanese) nicking nearly all dh’s old Dinky Toys out of the loft! 🤬
Never did find out who - only realised after we’d moved back in.

Accidental landlord here and personally I wouldn’t bother if you don’t need the money.

As I said, I became an accidental landlord and rented my house for the past 2 years before choosing to sell for a number of reasons. I had to rent to keep my property as I needed it to cover its cost however I found the whole experience quite stressful despite using a letting agent, and even then I was 1.5miles round the corner, not in a different country.

Additionally, the changes to tax laws just eat away at the profit you make so without a substantial rent increase (35-40%) if I’d rented it for a third year I’d not have been able to cover cost plus the tax burden it creates, just to break even. If you are a basic rate tax payer the impact isn’t as great as relief is limited at 20%.

I am now in the process of selling and cannot tell you the relief I felt to go sale agreed on the property.

The house a few doors up from us has been empty for two years. In year 1 there was a huge water leak that went unnoticed until it impacted the neighbouring property. They got that all tidied up, then a few months ago there was some issue with the boiler and electrics resulting in a gas explosion and a fire. The entire contents of the house have been dragged out onto the street and into skips and the whole thing is a disaster.

Sounds awful but no, I wouldnt. It is your home that you are attached to, after three years as a rental it will not be in the same condition you left it in as there will be normal wear and tear at best. If your tenants don’t want to leave you will face a nightmare trying to get your home back. We were landlords once keen to do the right thing, mugs game.

Yes because although there will be wear and tear your home will be safer (from pests, water ingress etc). Obviously an empty home can be illegally squatted which is v hard to combat.
Pay for a shit hot managing agency.

Have skim read some of the replies to the OP so apologies if this is repeating something already suggested.

If you don’t get a lot of choice where, and for how long, you are sent elsewhere in the world
for your job, does that also mean the company bring employees into the U.K. to work? If so, would it be possible for your employer to rent your house from you for employees coming to work in the U.K. to stay in? You’d get the security of your house being occupied, more flexibility over it being available when you return to the U.K. and less risk of having to go through an eviction process when the time comes. You also avoid your home being empty for a prolonged period of time.

No fault evictions doesn't mean you can't state an end date to the tenancy.

OP don't let this put you off - there's so much misinformation out there about it

This is NOT what the new law states.

So much misinformation on this thread.

There are new laws under the renters reform Bill. This still needs to go through process but likely to be in place in 3 years.
There will be a new eviction ground under section 8 to evict a tenant with 2 months notice if you wish to return and live there yourself.

I'm a landlord, join NRLA £85, gives all upto date info and copies of all agreements etc needed

IF you can get the right tenants (and management agency) I'd go for it. The house will be safer and more secure if it's occupied (and heated in winter at someone elses expense).

Maybe your employers have overseas staff with family, coming to your location on a fixed term contract?

I would rent it out for 2 years, to allow for the full process at the other end. I would charge market rates and use an agent. Store anything valuable/ sentimental value, or store everything and have it unfurnished.

Rent only 2 rooms and keep one for maintaining possession even if you rarely use it when you're back. Keeps access to the house.

We had this exact situation, including the posting abroad being for 3 years! (Although in the end we extended and stayed for 7) we rented out, although we had it managed via an agency. Be aware you need to pay income tax on your rent, and you need to re occupy it when you come home to avoid some tricky capital gains tax issues. We were happier knowing we had someone living there - unoccupied property is a magnet for squatters and deteriorates when no one is living there. If you have a mortgage clear it with your mortgage company before you put tenants in.

and then enjoy your posting!!

I'd be more likely to rent with all its problems than leave a house vacant for 3 years with the worry of squatters moving in . At least with vetted tenants it might be easier to get them to leave than squatters that might actually trash the house .
You could always contact your local university that might have staff on a short term contract or do you have family that might be ready to move out on a low rental ?

Definitely speak to the council about whether they'd let it for you. My friend did this and when he wanted to sell it (after 5 years) the council found the occupants other accommodation so no issue with trying to evict them.

They also agreed to cover any damage and no risk of void periods.

Why do you want to rent it out at very low cost? Do you want to rent out your house to make money? Or have it occupied? Or help someone with houseI g?
I rented out my house while working abroad
(two years away). No problems, but I removed furniture. Into storage etc.

it equalled an additional income of 50,000 pounds. I am currently renting out house again via estate agent, management as well. One year contracts, and payment up front (there was a bidding war for property and as incentives people offered to pay six months in advance). Went with big estate agent. Still check thoroughly yourself though as I’ve twice had to week out people that the EA said were ok and turned out to have histories of quite easily traceable debt problems (one was bankrupt!). I did not want young families (wear and tear) or pets. Rented to professional people foreigners working in UK who I thought were set to buy or move on.
mid you want house for holidays try renting to academics who will come inly in term term (if you're in a university town) American academics pay well and you won't have to remove property. There are companies specialising in this.

We were in a similar position. We let the house to a single woman with one school aged child. Found out she also moved in two adult children, her partner, her partners child (part time) and three dogs - in a three bed house. We gave notice to quit, she barraged us with emails and phone calls and got really nasty. She eventually left and it cost us over twenty thousand pounds to get the place fixed up. Never again. Don’t do it OP, especially now section 21 is being abolished