Doctor Drivel wrote:

wrote in message
oups.com...

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).

Furnished vs unfurnished is a difficult one. There tends to be not a
lot of difference in rent; worth asking local agents which has most
demand locally. If you leave it furnished, you need to be sure all the
furniture comes up to legal standard as regards smoke inhalation in a
fire; the tenants may trash it (although you can offset vs rent income);
tenants may not stay as long because moving out is far less upheaval.
If you let unfurnished, presumably you'll have to sell or stire your
furniture.


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.

Definitely have the tenant pay the council tax - you let the council
know when they move in, then if they don't pay up it's nothing to do
with you (although this is likely to change). Same thing applies to all
the utility bills; if you give them the meter readings and tell them
when the tenant moves in and out, you have no liability at all if the
tenant does a bunk without paying. I don't know how your service charge
works - is it significant, and would the freeholder chase you for it if
the tenant didn't pay them? Presumably so - in which case I think I'd
just build it in to the rent.

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?

Sounds like you definitely need an agent to manage the place then,
although it's very expensive for what they do. No need to involve
lawyers, the agent will set up an Assured Shorthold Tenancy agreement
when the take on the tenant - that's one thing they do actually have to
do for their fee! (Don't even *think* of doing it on a handshake...)

You need a mains connected smoke alarm.

An excellent idea, true, but not actually compulsory unless the property
was built recently (ie, since building regulations insisted upon these
being fitted).

Look at 6 months shorthold tenancy contracts, which is the standard
official contract most use. Take references and guarantors and "check
them out". Take a deposit. Don't have students, especially foreign
students. Take British people rather than foreigners as foreigners can
just flit off abroad owing 1000s, while British people are traceable.

Agree with all that, but if you use an agent, they will find the tenant
for you and *should* do all the above! If you're a first-timer, you'd
be well-recommended to leave sourcing the tenant to an agent.

Most important is that you vet the agent you choose - check their T&Cs
and fees very carefully, and make sure you use one who's a member of the
trade organisation ARLA or equivalent. Be assured that there are plenty
of really naff agents out there.

One good example of how agents stiff a wet-behind-the-ears landlord (and
yes, I was he!) is to set up a 6-month AST, for which they will charge
the landlord and tenant handsomely, and then in 6 months time, and every
6 months thereafter, will charge again for 'renewal' fees. Whereas,
it's completely unecessary to renew an AST - after the initial period
has expired, it legally defaults indefinitely to a 'periodic' tenancy,
which retains all the T&Cs of the original tenancy agreement, with the
landlord having to give the tenant 2 months notice to quit, and the
tenant giving the landlord 1 months notice.

The above is all from knowing people who have had serious problems with
tenants. A good pay on time tenant is a rare thing.

Touch wood, I've never yet had a problem, or any tenants who weren't
'good pay-on-time' types. Have to say I do vet them very, very
carefully though, and also trust my instinct.

Check out www.landlordzone.co.uk - excellent info resource, and has a
very helpful forum.

Good luck
David