Is being a landlord that great?

[The Spartan]

I've been reading a fair few articles lately about the so-called housing shortage, in every article it more or less blames high rents and unscrupulous landlords for many of the problems. What I really want to know is how is it being a landlord as I doubt by any stretch of the imagination it's a cakewalk.

I've never rented in the UK but I am assuming that rates will vary according to things like whether it is unfurnished, furnished, bills including and not included and general upkeep of the property things like wear and tear etc

It would be great to have your input

[redgiant]

I've been reading a fair few articles lately about the so-called housing shortage, in every article it more or less blames high rents and unscrupulous landlords for many of the problems. What I really want to know is how is it being a landlord as I doubt by any stretch of the imagination it's a cakewalk.

I've never rented in the UK but I am assuming that rates will vary according to things like whether it is unfurnished, furnished, bills including and not included and general upkeep of the property things like wear and tear etc

It would be great to have your input

We own a rental place nearby (1 bed self-contained fully furnished flat with garden) that is currently rented out as a corporate let at the top end of the market rate via an agent.

Similar to the agents we have to go through for contracting they are mainly useless however they are at hand to show the tenants round, sort out the references and also to do an inspection every three months or so there is some value in what they do (they charge 10% of the annual rent in fees).

Wear and tear is usually picked up on the check-in / check-out (usually done by a separate 3rd party) of each tenant and depending on how bad it's either paid for by the landlord (if not excessive) or the tenant (if it is excessive) through their deposit. The great thing is that with a corporate let they have their own insurance and will pay up if the tenant wrecks the place that is in excess of the deposit

As for bills we have a service charge as it's a leasehold flat that we pay but the council tax and the services are paid for by the tenant. You will also need landlords insurance, gas safety certificate (needed each year), electrical safety check and I think you need one of those energy efficiency ratings now too.

[d000hg]

It depends massively on who you let to and where it is, and how much you want to do yourself. Most agents will do a management service for ~12% of the rent received where they find tenants, attend to normal maintenance, etc - you never have to visit the place.

Even with all that, letting our place - our home - to slobby DSS tenants who trash all the careful work we put into it, was really painful. But that's the problem of us seeing the place as our home rather than a house.

Find an easy let in a decent area if you want to try it, and use an agent, would be my advice. You can cut the apron strings later.

[Basil Fawlty]

and use an agent

I've used 4 different agents in my local area and they've all been useless, so much so that I now manage my properties myself.

I used to spend as much time managing the agent as I do managing my tenants. Not to mention the extra void periods (and agent doesn't have a mortgage to pay, so they really don't care if it's empty for a month or two), charges for needless repairs, and tenancy set up charges.

Unless you know of a good letting agent, I'd advise managing the properties yourself...

[The Spartan]

I'm hoping to get into BTL next year, in terms of an investment has it been worthwhile in your experience?

[redgiant]

I'm hoping to get into BTL next year, in terms of an investment has it been worthwhile in your experience?

I would say so but choose the place for it's rental return (purchase cost + initial expenses / monthly rental amount less agents fee) and if it's in a good rental market.

The return on our place is about 10% per year after the agents fee and the expenses. The first year will be less as you will likely have more expenses to deal with but a BTL should always be viewed as a long term investment.

[MaryPoppins]

as I doubt by any stretch of the imagination it's a cakewalk.

?

Wassat mean?

[northernladuk]

BLT is still a good investment in my mind I have a flat and a house and neither are empty for more than a week or two after the last tenant leaves. The house is a bit of a pain as there is more to go wrong so will be thinking of swapping it for a 2 bed terrace on a new estate, suitable for single mum your young family that are looking for longish term home rather than a bigger house that people seem to use as a stop gap. Mine are rural locations so I haven't seen this boom in rent that is plastered but mortgage rates have dropped so still pleased. I won't suffer much of a drop either if they come so suits me.

Avoid anything old as the roof, damp and other upkeep of old houses becomes a pain. Don't go for the lower end of the market due to the types you get in however tempting the cheap houses are.

Something new, low maintenance, in a decent area and expect it to be long term.

Unfurnished is a lot more popular and less maintenance than furnished and doesn't make that bigger change on a the price.

[The Spartan]

?

Wassat mean?

It's used to describe something that's ridiculously easy, a combination of "A piece of cake" and "A walk in the park"

[Pondlife]

?

Wassat mean?

It's a walk in the park whilst eating a piece of cake I think.