DIYbanter - View Single Post

Sponix wrote:
On 21 Mar 2006 02:06:12 -0800, wrote:

Due to a change in circumstances I am considering renting out my flat,
which is in a purpose built block in a good rental area.
I have to pay a quarterly service charge, council tax, etc and it would
be rented furnished (unless there's a good reason to rent it
unfurnished).

Regarding things like service charge & council tax. Is the tennant
responsible for paying them or should I build them in to the rental
price and pay them myself? I'm concerned about what would happen if
the tennants didn't pay.

Obviously I would like reliable, hassle-free tennants and for
everything to work well in the flat so I would have as little
involvement as possible. I wouldn't have much time to work on repairs,
chase late rent, etc.

Would you recommend getting a lawyer to write an official rental
contract or just do it on a handshake & deposit and should I hand it
over to an agency or do it myself?

What percentage of the flat do you own and what percentage is
mortgaged?

The reason for asking is that the market is at a high. You might do
better selling the flat if the market is due to fall.

If house prices fall then rental prices will fall as well. The rent
achieved may not cover your mortgage..

sponix

A very large % is still mortgaged and there is also other debt secured
against the property. I'm sure if I sold there wouln't be enough to
pay off everything.
I'm also pretty sure the rent would be enough to cover monthly
outgoings e.g mortgage, repayments to loan company. But if a month or
two rent was missed I would struggle to make it up myself.

I would be a student so I'm not sure how that would affect things.