Any landlords with private tenancy agreements, not via agents?

[WoolyMammoth55]

Hi all,

We've been using an expensive, not great management company to rent out our flat in London - combination medium-term lets and 90 days Airbnb, all managed by them.

However, we love our neighbours and they have been increasingly bothered by the setup, so we are now extracting ourselves and planning to move to an AST.

Been contacted out of the blue by friend whose friend is looking in our area. She has viewed (let herself in with lockbox keys as the tenants do) and offered directly to us. Our friend knows her well and vouches for her, they work at the same firm so we know she is in employment etc.

Are we out of our mind to do this privately? Just get a tenancy agreement template off lawdepot.co.uk and put her deposit in a DPS account and go off into the sunset?

It is great to have someone we 'know' and my experience as a tenant myself is that agents are never worth their commission. But I have a niggling feeling that it being this easy now likely means I have a nasty shock around the corner!

Be grateful for advice from anyone who has gone down the private route about pitfalls, etc.

Thanks in advance.

I haven't been a landlord, but many people do this type of arrangement and advertise via OpenRent or similar. It is a well beaten path.

Yes, use OpenRent. It will ensure you use a decent contract. It can also be a way to access the other services you need as a LL….such as gas certs, electrical etc. Really important to meet all your legal obligations which will still be the same as a LL.

Lots of people self manage properties and save the high agency fees. I would still be sure to get a proper credit check on people and take up references. Open Rent can sort those too.

You’ll also want to know you’ve got a plumber/electrician yiu can call on when needed.

Loads of people self manage perfectly well, but careful record keeping to ensure all legal requirements are kept to in a timely manner, and that your referencing and contracts are watertight, plus you have the ability to get problems sorted as they arise is vital. If you can’t do these things, stick with an agent. Otherwise, go for it and save the money.

I’ve only ever had issues when I used agents.

Seems much safer than getting ransoms through an agency

I currently rent my flat to a friend and I’ve had less issues than through agents.

I rent two properties to friends. I got a template, added a couple things, and did the dps for the deposit.
One issue is one friend lost her job due to the pandemic, and I gave her 50% off rent for the first lockdown. She still isn't paying full rent even now, and I feel a bit stuck, whereas if it was someone I didn't know, I'd be much firmer about getting full rent and evicting if not. It's my income and I need the rent to support my family.

Yes, I own a property which I manage myself through Upad. I also looked at OpenRent but the AST doc seemed a bit long-winded and inflexible, also I didn’t like their system where potential tenants could ‘book’ your property prior to to your agreement (which seemed to cause misunderstandings?)

I have rented a property out to friends of friends using templates from the National Landlord Association. I made sure to do all the things an agent would do regardless of the friend of a friend status; credit checks, inventory, contract, deposit, registering deposit, landlords insurance etc etc

It is a fairly straightforward process. I had one tenant where the end of the tenancy was not straightforward, and the legal advice offered by the landlords insurance company was invaluable. I wouldn't rent out without that insurance having seen how useful it can be.

Basically, yes, you can do it yourself. But do some research, do it properly, and don't miss out steps just because you know the tenant.

Can I jump in with a question please?
We are just want to do this with two ladies renting our place. We know one the other is her friend, i’m planning a joint tenancy but should they pay the deposit separately or as one? Is it okay if they play the rent 50/50?
I want to do it by the book

In addition to the usual checks I would also insist the Tenant provides a Guarantor.

We use OpenRent very successfully. Not had an agent for about 8 years. It’s very easy.

My husband rents out 2 properties privately. He finds tenants on spareroom and has a contract drawn. Never had a problem, done it for 7+ years

I dont rent out my old flat anymore due to new rules on evictions etc and just keep for friends and family to use, as its in Bath.

When I did rent it, I seemed to of had more problems using a management company and they wete useless at sorting anything out. When I rented out privately (used gumtree at the time to advertise) I vetted tenant's myself and went with gut feeling, never had any issue's

I rented my old flat privately and the Landlady managed everything herself. Saved money on holding fees, tenancy fees etc.
She had a company she used for plumbing/electrics. Felt confident contacting her directly.
Renewed my tenancy after 6 months then was rolling until I left after 4.5 years.
Only reason for leaving was needing a bigger place.