Renting out a flat without using an estate agent - has anyone done it?

[AmericanPastoral]

We have a 2 bed flat in central London we are looking to rent out. I've heard of www.openrent.co.uk/ and now easyproperty.com/residential-lettings Has anyone ever rented a property out themselves, either using one of these or another company? If so how did you do the reference checks? And how long did it take for you to find someone? Thank you.

I think if you are asking these questions, you should be appointing an agent. If you don't really know your stuff, you are very vulnerable. It just takes 1 bad tenant to find yourself in a sticky situation.

I used to self-manage but due to increasing complexity & legislation, I started using an agent.

Yes we did it for a while but switched over to an agent but didn’t use those companies.

It was a hassle having to be responsible for everything including all the references and inventory etc. You also need to think if you want to be contacted potentially 24/7 if there is a maintenance issue. There are different agent options such as tenant finding and referencing only so it’s worth exploring all options. I agree with the previous poster, would you be comfortable handling an eviction or missed payments?

I would speak to some agents and see what there fees are just to get an idea. The ones I’ve used have always allowed for a negotiated % so never felt like an extortionate cost to use one.

I let a property myself. The references, credit checks etc are really simple using an online platform. I used open rent to rent it last time, but a different platform for the references just because I still had credits on my account from previously. I really appreciate being able to build a relationship with the applicants to make a judgement about giving them a tenancy myself. I could get phoned at any time with a problem, but never have been disturbed at night etc. When friends have used a lettings agent this could happen too, as the agent wouldn't send anyone round without having the landlords agreement on the call out cost. I have a couple of tradespeople I have used before and am happy to use again, or just Google someone with a 24 hour emergency call out service if that's what is needed. I have a comprehensive landlord insurance and endeavour to maintain my property to a high standard/ prefer to pay a bit more to get a problem sorted properly with less inconvenience to me and my tenants. One of the problems I have is tradespeople who assume I want a crap job because it is a rented property, as this seems to be the standard in buy to lets. My property is also in London, and so I get a relatively high level of rent. The typical percentage fees for an agent would be the same cost as me spending a good few hours a week working managing the property. In reality the amount of time I need to spend to manage it myself is nowhere near this, and if I spend some of the money I've saved on inflated emergency call out fees etc I am still saving money overall.

I dont think letting a property directly is for everyone though... you need to be able to maintain a good relationship with the tenant - not getting stressed out by problems or potential problems, or being weird with them tenants. Someone I know who just tried to let their flat directly struggled to do so, partly because it is in an area with lots of similar properties for rent, but also (in my opinion) because the advert was a bit weird in the way it was written, the photos weren't very flattering and because she came over at viewings as a bit intense and emotionally- invested in the flat.

I use an agent and my friend self manages. Not in London and her properties are more expensive than mine.
I think a problem is that slightly dodgy people will target self managers. She has had varied tenants but quite a few problematic ones.

Agree with above; advertise on Gumtree & you're guaranteed to attract those who letting agencies won't touch (eg poor credit histories, questionable residency, fake references, no payslips, sub-letters etc).

Tenants have rights, and once you've got a crappy one in, it's actually a very difficult process to get them out (around 6 months & thousands in legal costs, often while not paying rent).

It's a massive risk, and that's why people pay agents to mitigate/reduce the risks.

Just be honest about how long it is going to be available for. If you're not sure, rent it out on short term lets through an agency. You might pay a lot on agency fees but you'll get a higher rent.

Used Openrent in Herts, got references from employers which looked legit (can always call the public number for the company and follow it up, I suppose), and had tenants within... like a fortnight? Lots of requests for viewings, and all went smoothly. So far, they pay, I'm happy, and I'd use the service again.

Also should say flat was newly renovated so I felt relaxed that I shouldn't be bothered with lots of problems and things going wrong, which obviously increases over time.

Most agents simply do not care who lives in your property, the first couple / family vaguely fitting the brief who pass the credit check will get your house so they can get the lease signed and the commission banked.

I engaged a reputable London EA to tenant find for me and she brought round 3 very young foreign hotel chambermaids who, with one's cousin and the other's boyfriend (not present) would collectively be able to afford the rent and pass the credit check, and couldn't see why I was unimpressed with this suggestion. Despite me having said 16 million times that I wanted a single family.

Remember that an EA isn't responsible for the tenant paying the rent, or for the eviction. They'll chase for unpaid rent in a legally compliant way, leaving the correct paper trail, but if they still don't pay the matter will quickly be passed to the insurers (either theirs, if you took out their rent g'tee insurance, or your own).

An EA will not guide you through the court process and hold your hand they will direct you to the appointed case handler at the relevant solicitor's firm.

I am a lawyer myself so I'm comfortable with what's required of me and know when I would need to get a tenant/LL solicitor involved and I genuinely sleep better at night knowing and having vetted my tenants personally. They have all of our contact details and there is nothing we haven't been able to resolve quickly and satisfactorily for them, even from overseas.

Tips on using Open Rent:

Don't give your telephone number in the ad. Make the interested parties communicate in writing.

The applicants who wrote a blurb about themselves / their personal situation (who, what working as) and politely enquired when they might view went to the top of my list - we were inundated.

No one was allowed to view until they had acknowledged / confirmed they understood the credit check requirements and earnt enough to pass the check.

Everyone else (who just said 'when can I view') was asked to please write a little about themselves / their household and what they were looking for / why moving.

Anyone who said 'we'll take it' or 'call me 07xxxxxxxxx' didn't get a response.

This will sound counterintuitive but if you want max 2 people sharing don't write that in the advert. It encourages fibs (ie subletting). People are astonishingly honest about who will be living in the property if you don't make your red lines transparent!

MoreProsecco Zara sleeping 7to25 bibitty Iamthecaptain Dexy Thank you all SO much for taking the time to post such detailed, useful comments. I'm very grateful.

Hi op, we use openrent. They put on rightmove, we do references and credit checks through them too.

Estate agents are such a rip off for letting dogs but I suppose it depends on your confidence. We get occasional calls from tenants, dh can sort most himself and has an electrician and plumber for bits that he can’t. It’s far cheaper to do it yourself, friends that use agents get ridiculous bills for works that could have been done by themselves. A handle being fixed or shower curtain replaced for example.

Not sure where the dogs came from!!

I do. I'm a member of the NLA and use their tenant checking service. Given we're next door, we can easily maintain the place. If you're going to be abroad or over an hour travel away, then get an agent.

Ive found two tenants who advertised themselves on Gumtree (their landlords wanted to sell, they wanted to stay in the area and had a pet) and have advertised and found tenants there. Never had a problem with them even though none ever earn enough to qualify for income protection insurance - at leady PhD students have a guaranteed stipend for 3 years which is better than most jobs for security. The only problem tenant was a friend who acquired a drug problem. The courts and bailiff were very helpful.

It's also worth considering how far away you are; I'm an hour away & have 2 young DC, plus work 2hrs away so it's just not practical.

If you do it yourself, why not use an agent for the initial tenant-finding & reference checking, then use an independent inventory company & do the day-to-day management yourself, once the tenants are in?

Have a look at the Allagents site for reviews. The key is finding a decent agent. London seems to be a very different kettle of fish compared to other parts of the UK. I find the big companies aren't very good - smaller agencies who focus on lettings predominantly (rather than sales with letting on the side).

Also have a look at the Landlordzone forums - it will give you a much broader picture of what it involves & the kind of scenarios you could be facing.

Oh, and check your mortgage company are ok with both letting it out & self-managing - mine insist I use an agent (and I'm fine with that).

Would love to know more details about the property - I’m currently considering relocating to London

We rent our flat our privately (no agents). It's in a desirable architecturally-specific location (along the lines of the Barbican, but not!) so we rented through word-of-mouth. It's been very straight forward to do all the logistical stuff and we v. much wanted to know our tenants. It's worked out great so far (nearly 4 years, same tenants). We trusted ourselves to find a suitable tenant more than an agent who would have just got the first person in who could afford the rent.

We've used Upad last two times and it's been excellent. Depending on the options you select they take photos, you write the ad and meet prospective tenants, and they do credit check, deposit protection and tenancy agreement. Both times we have been inundated and spent a nice day meeting potential tenants at 15 min intervals. Would never use trad EA again.

We use openrent.

It is much better than using an agent because you meet the potential tenants and you choose who can live in your house. I would never use an agent as I don't want someone else to choose my tenant!

The credit checks are exactly the same as an agent would use. You sort out the tenancy agreement, giving them keys, doing an inventory yourself.

We also only let people view who send polite emails with a detailed description of themselves. We also reject offers. The price is the price, no haggling.

Yes I also politely rejected anyone wanting to haggle. Had a man write 'Dear Dexy I'm andy and I currently rent a 2 bed flat local for £1350. I would therefore like to offer you £1500 for your 4 bed house'.

Yes, Andy, because £150 per month is the going rate for an extra bathroom, a dining room, a separate kitchen, a huge garden and 2 further bedrooms.

But actually that leads me to another OpenRent point : it's got to be discounted against the open market with an EA.

You're asking a tenant to trust that you'll be contactable, won't have to be chased for repairs, that you'll kick into action when the boiler packs in and not leave them shivering for 3 weeks and only getting going when they threaten enviro health.

So discount what you would pay the agent to find you a tenant and pass the saving on. Don't be greedy!

Not a LL but a tenant. We've found our last two flats on Gumtree, not because we're dodgy - both have good credit histories, UK citizens, no criminal record / social service history, in full time employment etc - but we've both had bad experiences with letting agents (retaining deposits, not getting repairs sorted, poor communication) and no longer wanted to deal with them.
Both of our landlords asked for all the same background checks as a letting agent would, and we're still subject to the terms of the tenancy agreement so we can hardly trash the place (if we even wanted to, which we don't). So if you do want to go down the Gumtree route, don't assume that you're only going to get trouble-makers; you just have to be responsible for vetting the potential tenants yourself.

Openrent is fabulous. I rent all mine through it and have done for years. I use their referencing, then get rent guarantee insurance from them. They collect the rent and if ever was late do the chasing themselves (rent collection was only added recently) and it's such a smooth process you can't beat it.

Sorry me again, don't want to be patronising but @Stanski please remember rent collection only really applies when there is rent to be collected. It's like a PayPal for rent - T pays OpenRent and then OR pays you. Keeps things marginally more 'arms length'. And if T doesn't pay one month OpenRent will send chaser letters and keep a paper trail. However after that it's a matter for your landlord's insurance (whether you arranged that independently or through OpenRent). Insurer will appoint you a solicitor or give you a budget to do so. At that point the EA or OpenRent is out the picture and you're on your own.

To the best of my knowledge the only way an estate agent will actually take conduct of the proceeding and evict them for you is when you've done a guaranteed rent scenario.

I've heard of a few LL who rent the 'traditional' way through estate agencies and so don't have insurance because they think 'the agent handles all that'