Can anyone guide me on renting out my house?

[Everywhichway2018]

So today we were due to exchange but instead our buyer pulled out 😣

We are moving 200 miles away and are now considering renting out our property and renting somewhere for ourselves in the new area.

We think we could possibly get £1200- £1400 pcm here and could get somewhere nice for £900 -£1000pcm there. Our mortgage (not buy to let) is around 450 a month. We currently live in Hertfordshire and are moving to South Wales so w

Please can someone explain the pros and cons as we really are clueless!

If you are clueless I strongly advise trying to sell to someone else rather than renting the house out. There are many obligations on a landlord. You are unlikely to make a profit from renting out due to insurances, management costs, etc although the house may increase in value. Can you afford to pay rent elsewhere if you have a void period for any reason and what if the tenant fails to pay the rent?

Try landlordzone.

Also agree with fudge. Just sell.

We couldn't sell our flat 6 years ago & hired an agent who arranged all the certificates we needed- gas, electricity, land lord registration, etc & found us tenants. We are on full management which he charges 10% of the rent. We have given him a list of the tradesmen we want to use & he contacts them if anything needs fixed. The longest our flat has been empty is 5 weeks & we were actually painting the flat & fixing things so part of that was because it suited us. Most tenants have stayed around a year but I think our current tenant has been there nearly two. We haven't had any problem tenants but it's only a 1 bedroom flat with box room so we tend to rent to single professional females in their late 20s. Its a nice flat &

We kept our repayment mortgage & got permission to let from our mortgage provider. Our rent is £700 & our mortgage is £570 so including the agency fees & the factor fee on the flat we lose money every month. At the end of the tax year we complete a self assessment- well an accountant does- & send a cheque to HMRC with what we owe. You guys are still making some profit so might not be so bad.

The only negative is unexpected costs but as long as you have savings it should be ok. The renting rules have changed so tenants no longer sign 6 month lease but we haven't been affected by that.

those sums already dont work.forget it. add agent fee, all the expensive insurances, tax, etx etc - no chance.

landlording is not for the c lueless.

You could use a letting agent to do all the work for you!

The problem is that finding a truly good letting agent is not easy. As landlord the buck stops with you even if you use an agent so you must know your stuff and not leave things to chance. Lots of letting agents are clueless or wrong when it comes to tenant rights and landlord responsibilities and are, frankly, getting money for old rope.

I agree with Chocolate1984 all the way.
I rented out my two bedroom flat with an agent. Mind you I did not alert the mortgage company, would not advise you on that.
The rental paid for my mortgage and now I am mortgage free.
The agent got their accountant to do my taxes every year, send me a copy and I always ended up not paying because once you subtract all the outgoings, nothing is left.
I would see if I could find some really good trades people who would be willing to do work when it is needed.
Get the boiler, electrical etc properly checked out, rent the house out and move to Wales.
Who knows you may have or want to return, if you sell it would be more expensive to buy.
If after a couple of years you are happy, fix the place up and sell.
I would rent a flat in Wales for the time being to find your footing.

I am only clueless as it is not something we had previously considered. Hence the reason I am asking, got to start somewhere.

So for those who have had to do it, it has worked out? @Chocolate1984 @marjorie25

If you’re going to do it get yourself over to landlord zone and do some research. The fact you posted in MN rather than LLZ leaves me to belice you haven’t done any basic research.

Renting is a pain in the ass when things go wrong. Even with an agent. You need to be super clued up. You need to be prepared for worst case scenario and have good insurance!

You are unlikely to make a ‘profit’ as such after all expenses and tax but you might do.

Prob can get permission to let for 6 months from mortgage provider before you have to remortgage onto a BTL.

If you decide to leverage up and hold it and buy a second resi property (as people fleeing London used to do) remember you have the extra stamp duty now.

We let our house out last year. Decided to go down the fully managed route. They charge 8%. After mortgage and other expenses we have about 120 pounds left. They will call us each time there's an issue, if it's a small one then DH has been able to sort it. They've arranged all the paperwork etc.

So far, so good. I'm not sure it's as much as a minefield as people are making out. Do get decent landlord's insurance.

Forgot to say our mortgage is about 470 and the rent is 750pcm.

Get 3 agents round for rental valuation. Ask them for fully managed charges. Don't let them charge you more than 8% plus vat. Call your mortgage company and ask how you get consent to let. Get quotes for landlord building insurance. I'd open a separate bank account for anything to do with the property. Register for self assessment.

Let the agent deal with maintenance etc

It’s not that difficult just ensure you are aware of your legal responsibility and landlord zone as suggested is good, you’ll need to inform your mortgage company. Mine allows 12 months before changing the mortgage which includes a slightly higher interest rate and employ an agent. Good luck with your move.

Oh prepare to have your house trashed, no rent paid and months of waiting around for bailiffs to evict.

penalty for not telling the mortgag e company - for eclosure.
penalty for wrong insurance - no payout. one on here didnt and house burnt down, no payout.

penalty for non compl ian ce with labdlord laws - fines, prison.
risks - non payment, damage, deal and steal, etc etc.

excuse spaces. mn crap coding.

It's not straightforward - many pitfalls with being a landlord. First of all you will have to notify your mortgage company who will probably make you buy a different type of mortgage from them, certainly with an increased interest rate. Landlords insurance, strict safety concerns re boilers, gas fires, fire alarms. You will also have to complete a self assessment tax form, as all rent is liable to tax. This is before the minefield of getting a decent tenant. We have always used agents to manage our properties, but at a suitable opportunity we sold up - so stressful and you're always wondering if the phone rings 'oh goodness, what now?'. Trust me on this one, it's not as easy as it seems!!!

We let out our old house when we couldn't sell, but DP had previously been a landlord managing several properties himself and I worked for a property management company so was up to date with legal requirements, etc. The same tenant lived there for about four years. No issues with the tenant but we had to sack the managing agent about a year in because they failed to act to fix issues the tenant reported - they hadn't even told us about them. We nearly lost the tenant at that point. Luckily with my contacts I got the issues resolved in less than a day. It is no picnic though and it cost to let the place out. That money was only recouped once the place was sold.

You should watch that slum tenants/landlords show on ch5.

Lots of scare stories on here op. Honestly if you use a reputable agency you are half way there. Also there are some agencies that do a guaranteed rent for a bigger commission.

-Find an agent to market and manage-8% fees is about right
-clean house throughout
-white goods will probably be needed even if unfurnished ie fridge/washing mc/cooker. Dishwasher optional but makes it more lettable
-I would have curtains up for presentation
-will need a gas cert.
-MUST HAVE agreement from mortgage company
-Will need an EPC cert (agent can help). If it below E you won't be able to rent it out.
-will need an accountant to prepare your tax return at year end. You are may have to pay some tax on your rental income.

Be aware that it may be empty for some time. You could market as 'for sale or rent'.

If you find tenants you will then hv to give 2 mths notice if you require them to leave. It is harder to remove them during the first 6 maths, not to mention a bit nasty unless advertised as short term let.

Having tenants could make it more difficult to have viewings.

Because of changes to stamp duty you may have to pay an extra 3% if you buy a new hse while owning this one. You may get this back if you sell original one within (I think) 3 years - check this out. The stamp duty could be VERY costly-I would speak to an expert. Your accountant may be able to help.

Sigh. It's a big faff and might just be easier to leave it empty.
Hope it all works out.

guaranteed rent is 'don't touch with a bargepole' because it means subletting. You can get rent guarantee insurance which covers you if a tenant stops paying, under certain circumstances. You cannot get cover for voids.

do not provide white goods unless you have to. You provide, you fix and maintain.

gas safe, right to rent checks, smoke alarms, how to rent guide, EPC; mess up any of these and your tenant becomes unevictable.

oh, and bollocks do you need an accountant to do a tax return! If you can't keep your own records for one property and can't fill in the simple form you REALLY shouldn't be in the business.

will need an accountant to prepare your tax return at year end. You are may have to pay some tax on your rental income.

Why?

It's a piece of piss to do your own accounts if you are sensible enough to cope with renting out a property.

@specialsubject ha ha xpost! Totally agree.