Accidental Landlord - Advice & Tips for starting out

[incognitodorrito]

I purchased a very run down property in 2020 and over developed it slightly as was planning to stay here for 20+ years. It’s round the corner from both an outstanding primary & very well regarded secondary. House is also within walking distance to the town centre but on a quiet (yet run down) road. Happily, the husband I was divorcing at the time and I have decided to get reunite and have had an offer accepted on our „dream home“. We do not need to sell my property but I never intended to become a landlord. However we will most definitely make a large financial loss if we sold this house, so have decided to rent it out. House is owned outright. Due to location and size, 3 bed semi with huge garden. Can anyone advise on the best insurance policy to take out, is it better to go via a lettings agency ? Do you put a percentage aside each month as saving for repairs etc ? I have had the property valued as a monthly rental and an agency that can place it on the market and vet potential renters. Landlords & ladies please advise !

Not going to wade into the LL stuff. Just wanted to offer my congratulations in reconciling your marriage. I am just taking the first tentative steps in that direction myself.

Are you sure you can let go of the house enough to rent it out? Obviously tenants need to take care of the property, but it will no longer be your 'home'. It sounds like you're very attached to the property and you'll need to let go to allow tenants stress free living.

@Stellaris22 Id hope the tenants would love the property and want to stay in it long term (5 -10 + yrs). Of course it would be there home. Obviously my biggest worry would be tenants like those featured on channel 5. I lived abroad for many years & myself + all m friends all rented - it was very commonplace and we all took care of pur homes. There wasn’t any stigma attached to renting or owning. It’s so odd in the UK how house ownership (or not) is viewed.

An adequate insurance policy to cover damage and loss of rent ?

There are many exclusions/waivers to ‘damage’ on policies (eg wear and tear won’t be covered and it’s hard to prove accidental/malicious damage).

Additionally, when I was a landlord, ‘rent guarantee’ insurance had a number of exclusions too, most notably I had to have started eviction proceedings before I could claim. It wasn’t like I could simply get money back if they just missed a month’s rent.

We’ve just sold our BTL after 4 years of renting it to the same family... it is not the ‘money spinner’ some think after all the bills, especially tax, and carries increasing amounts of risk, especially with the proposed legislation.

Tread very carefully.