Estate agent vs Open Rent etc to let property out

[Slanket7]

Coronavirus and subsequent recession has wiped out my work, so we think we’re going to have to move out of our home and let it out. (We’re London if that makes a difference.)

I’ve been looking at estate agents and their fees are eye-watering. We’d struggle to break even using an EA (our mortgage is £2k a month and our place has been valued at £2.4k for rental. After we’ve paid EA and tax, I’m not sure we’d be paying the mortgage...)

Open Rent seems more reasonable.

What have other landlords on here done?

I am very happy to do the viewings and all maintenance. Just need someone to make sure the renters can afford to pay the rent and will respect the place.

Feeling quite emotionally charged about it as it’s our home. But can’t see another way.

(Fuck coronavirus.)

Anyone?

Become a member of National Landlord Association and familiarise yourself with all your legal obligations of being a LL; there is so much to learn. You'll also need LL Insurance, so check out quotes beforehand too.

I'm a private LL and I love OpenRent, never used an agent, and I'm so glad I get to pick who I rent to - touch wood, always chosen outstanding tenants.

Don't rent to anyone giving you excuses for their CCJs or a sob story, go with someone who communicates well, turns up to the viewing on time and takes their shoes off at the door, and who has a solid history of employment/income and references that can be checked.

The NLA do great value independent checks and have been great when I've used them!

Bare in mind though...it can be very, very stressful, it's not easy money at all and I wouldn't reccomend renting out if you don't have a good £££ in savings to cover potential losses of at least 6 months rent + damage/maintenance costs -- especially if it's a mortgaged property.

Could you possibly use the property as an AirBnb instead? You could rent it, furnished, as short holiday lets.

I've always found tenants through OpenRent too, they advertise on RightMove etc and do all the referencing. I have usually held an open day and got tenants the same day.
Agree with PP It is a lot of work though especially if you're not really making a profit.
And yes, fuck coronovirus!

Openrent do not have the same knowledge as a local agent so as a
novice landlord I would use an agent initially. There is nothing like
experience.
It is very hard work and choosing the right tenants is the most
important thing but it is often very hard to predict how people
are going to behave. The general wisdom goes: if they pay the rent
do not cause damage then you are lucky. Anything else is a bonus

I disagree that an agent can do a better job of finding tenants, as long as you order independent checks and use common sense when vetting potential tenants. Often it suits agents to gave a higher turnover of tenants and they don't really care about you or the tenant.

For me, I've learned that fostering a positive relationship with my tenants has helped a huge amount; having direct communication and not going through an agent has been vital for this.

I treat my tenants with respect, honesty and I never forget that while is my income and business, these are also people's homes and them feeling secure and having a warm, safe home is just as important as my reassurance they will pay the rent and not burn the place down.

OP if you're prepared to learn all the legalities and familiarise yourself with contracts, insurance and legislation as well as have a large amount of spare cash if needed, then go for it, but it's not for the faint hearted!

I've been a private LL for years, but I'll be selling up my rental houses when my tenants decide to move on. I've been lucky and never had any big issues but the 'what if's', regular inspections, contact and essential maintenance are a constant source of stress!

I’ve been using Gumtree for years. You might get a few time wasters but plenty of serious enquires too. I haven’t been too by the book with venting tenants but haven’t had any issues yet (serious issues, some smaller repairs etc happen frequently).

Have you thought your decision through, though? You’ll need to change to a btl mortgage or get permission from the lender to rent out on a residential one. It sounds like you’ll struggle to cover the mortgage so have you got a buffer if the boiler goes or tenants stop paying?
If anything is high maintenance, eg a fancy garden, I’d expect that it’ll get run down so might cost £££ if you decide to move back.

Have considered selling the place and buying a more affordable one so it doesn’t feel so stressful the second one person’s income stream dries up?

Sorry to hear you have to do this.

I have used open rent and found it great because I like to vet the tenants myself rather than leave it to the agents. Everything is seamless and they give you credit reports and references etc.