Landlords help please

[morethanpotatoprints]

We bought a house yesterday and think we have a tenant willing to pay full price. There are several jobs that we would need to be doing whilst tenant was living in the house, but obviously when they were out. It has come as a complete shock to us and I don't mind admitting I haven't a clue what I'm doing. Having thought we would need to advertise, find an agent etc. It seems we have done it without their help.

1. Is it fair to ask for this as condition? Maybe offer a deal on the rent?
2. Tennant is a student, my dh knows students teacher. What problems may arise from renting to a student?
3. What deposit/ bond etc do we ask for, monthly rental is £425.00
4. What references/means of the student paying rent should I be looking for?
5. Can anybody recommend a reliable website that can explain what I need to do, law etc.

Thanks in advance for any help.

Sorry we always use an agent, to find tenant, do references etc, then we manage.

Student probably won't want to/have the money to do any work to your property.
Make sure you sign a tenancy agreement (you can actually buy the packs in asda!)
Deposit must go in deposit protection scheme.

Depends how disruptive the jobs are. Credit check and ask for other references and/or a guarantor of rent. Maybe a few bank statements to show cashflow, confirmation of any loan or grant. Get a month or two in advance. You could still employ an agent to do the references , contract inventory etc. You must have a Gas Safety Certificate renewed annually and use only Fire Retardant furnishings and carpet. Buildings and contents insurance including damage by tenant and non-payment. There is an online forum called landlordzone for advice and your local council may have info they can send you on your statutory responsibilities. Also register for tax Self Assessment with HMRC as you need to keep track on all income and outgoings related to the property with the net amount beign taxable .

Join residential landlords association pay annual fee and do it yourself. Honesty i have rented for 16yrs and agents are useless. I have several friends including my Current landlord and the hassle agents have caused make me wonder why they exist.

You can do own credit check too. Maybe do month and a half deposit. Ensure in tenancy deposit scheme.

Get good contacts for emergency repairs by recommendations.

Ah, thank you all for the advice and info. I will get onto these things straight away as even if the student isn't suitable or our house for them I will need to get sorting all this stuff.
Thanks for info on the contract from Asda, I will get one later when we shop.

Always get an independent inventory clerk to to check in and check outs. Put into tenancy agreement who pays for which (typically landlord check-ins and tenant check-outs).

Speak to the inventory person how you should handle the planned home improvements.

Speak with potential tenant if they fully understand how disruptive works will be (early start, workers in all day, dust, etc.). If they're non essential, tenant may prefer to rent as is and you could defer the work until they move out.

Contract and inventory included in residential landlords fee.

Would say deposit equal to rent. And ask for a guarantor and make sure they also sign the agreement and a letter of guarantee.

do you know about the deposit protection scheme which is a legal requirement?

do you know about the gas safety certificate which is a legal requirement if the property has a gas supply?

do you have insurance against malicious damage, legal expenses, non-payment of rent?

no special risk for students unless you have someone young and unhousetrained. I would never rent to the usual 18-21 students.

Don't bother with a credit check. They mean jack shit. Get bank statements. If a student how are eh affording the rent? Everything that specialsubject said.

Special.

I too thought this about young students too. I haven't met her yet but the house is quite a way from all the other student areas and she will have quite a commute.
I have sons aged 18 and 22 and they are very knowledgeable about how to live but our 18 year old would need some baby sitting when push came to shove Our 22 year old would be ok and will soon have his own home.
I have building insurance from today and will get LL insurance when we find a tenant.
I did know about the safety checks and certificate.
The work that needs doing won't be dirty or structural, just painting, decorating etc. Structural and plastering etc would be done prior to advertising/ accepting tenant, and is one room.
We will also be pulling down an outside toilet/shed as well. We were hoping to be able to do the clean jobs and outside work in due course.
I am looking on the website recommended, thank you all again

I'm not a landlord but I was a tenant for 15 years in London and consider myself a bit of an expert on the law - my experiences with landlords and letting agents were so shocking I had to educate myself. Ended up taking legal action twice and have won both times.

I second the recommendation about avoiding letting agents. All they do - at least in my experience - is rip off the landlord, the tenant, and drive a wedge between the two. The household names - Foxtons, Winkworth, Marsh & Parsons etc - are the very worst!

Borrow some books from the library so you can learn the basics, and read up on the dedicated forum on Moneysavingexpert.

Advertise where your target audience will see it (so if you're expecting professional students, a college noticeboard would be stupid but Roll on Friday wouldn't be).

Letting property is a business like any other. Treat your tenants like your best customers and be professional about putting problems right quickly. And stay on the windy side of the law with regard to tenancy protection, gas and electrics etc.

Sorry, should read "professionals rather than students" above.

If you go to Staples they have landlord packs which cover all eventualities. You will only get info piece-meal on here and it is important that all legalities are covered and that you and your property are protected. Otherwise go with your original plan of a letting agent.

the other thing I would suggest is 3 monthly inspections written into the contract, at a mutually convenient time and with notice of course. This is not to check if knickers are being folded but to ensure that all is well with the property. Some people don't notice water leaks, dripping gutters etc, and you can't fix what you don't know about.

You also need to be sure that it is being reasonably treated. EG if the bathroom is full of mould, have they disabled the extractor fan? (And a tenanted property MUST have one that goes on when the shower does and stays on for a while afterwards)

Just an update, and another silly question.

The student didn't realise how big the commute was, so maybe a blessing in disguise as I also didn't factor in the holidays when they won't be paying.
Thank you again special I had no idea about the extractor fan either. I have a safety check set for next week and we know the people personally so know they will be thorough and guide us through it.
I will also make sure the 3 month checks happen.

Ok my stupid question is a LL self employed or could they be a LTD company with only one property.
Also what type of deductions are allowed for tax purposes.

My husband is self employed as a LL but also pays PAYE in his day job. We do not make enough profit to be a ltd company. (it is more our pension fund)
You can deduct all expenses for tax purposes, this includes all mortgage interest, repairs etc also travelling to and from property, post.

You have to be careful with improvements, ie making the property better rather than repairing what is already there as this can be questioned. ie if you put on a conservatory or a new kitchen you wouldn't be able to claim this.

iirc the tax return has a list of the various allowable expenses ie. Mortgage interest, insurance, maintenance - ie. service and Gas cert, but not improvements such as new bathroom,

It will cost you money to run a Ltd company, so unless you are making huge rental profits, or buying and selling regularly, it is usually more cost efficient to be self employed and pay income tax.

I think being a responsible (and profitable) LL requires dedication and professionalism, its a profession not an easy money making sideline - you have to be up on all the legal requirements and issue all paperwork timely and correctly, any mistakes will cost you BIG... I'd join NLA £100pa for their training, resource library, legal helpline.