Considering becoming an unintentional landlord

[MeanMrMustardSeed]

A family flat sale has just fallen through for the third time. However, the rental market is buoyant here and DH and I are considering taking on the flat and becoming landlords.

Agents have said they charge 11% +VAT. I’ve also thought of insurance. It’s in a purpose built block of flats. I haven’t even checked who would pay the service charge.

Is there anything else I haven’t considered?

@burritofan

Is there anything else I haven’t considered? Morality.

If you had read my posts carefully, Holyfield have seen that the flat has been on the market on and off since the new year. It has been under offer 3 times and fallen through, most recently this morning. It has cost our family £3000 during that time. I don’t believe that there is anything immoral about considering renting it out.

What are the reasons the sale fell through 3 times?

*you’ll (not Holyfield! )

First couldn’t get mortgage in the end, second decided they didn’t want to commit to the cost of running an owner property. Third just pulled out when they took a job abroad at last minute.

TBH I’d stick it on again then. I think you’ve just been very unlucky and doesn’t sound like there’s anything about the flat that is preventing sale.

Sorry for your loss BTW.

Ensure any deposit is placed in a deposit protection scheme.

Check with your local authority if there are any additional licensing requirements in the area. Some places require every rental property to be licensed.

Check to see if your area requires you to be registered as a landlord.

Make sure you have properly specced for fire safety, and ideally over-specced. Fire extinguisher, fire blanket, smoke, heat & CO2 alarms.

To be honest I would switch estate agents and try to sell again (with an agent that checks the financial capacity of the potential buyer before you accept an offer).
The market for selling is good now and if you rent the flat for a year and decide you want to then sell prices might have dropped.
It's difficult to make a profit if you are letting one flat, paying an agency fee, tax, maintenance, insurance, certificates, unexpected breakdowns, void periods etc.

Landlords that make a decent profit have to be very shrewd and learn the loopholes, they aren't amateurs.

Plenty of salty posters not happy with landlords on here then!

What about people that can’t sell due to EWS1?

@MotionActivatedDog

TBH I’d stick it on again then. I think you’ve just been very unlucky and doesn’t sound like there’s anything about the flat that is preventing sale.

Sorry for your loss BTW.

Agree with this.

Selling is clearly your preferred option, and 3 agreed sales which didn't complete due to bad luck rather than a fault with the property suggests it's in demand.

@ManyMaybes

Plenty of salty posters not happy with landlords on here then!

What about people that can’t sell due to EWS1?

That would genuinely be 'accidental' in my eyes, if someone truly couldn't sell and needed to move for work and renting the flat out was the only viable option. OP's situation definitely isn't accidental in any way!