Renting out a flat.

[RobM]

Hi all, I am considering buying a flat (brand new) to rent out. 1 or 2 bed in Corringham (choice of bed's may be available).
'
What are the pitfalls of said idea? :unsure: It would be a 'cash' purchase so no mortgage to worry about. What would be a reasonable rent to charge? I would think about £550 a month for 1 bed, £650 a month for 2 bed.

How would I get a potential tenant 'screened' (sorry, can't think of a better word). Obviously I don't want the place wrecked. I live just a few yards from the development.


Thanks for any help.

 

[MK Shrimper]

Can't you get agencies to do this for you? I think DTS has a few properties and I would avoid students like the plague.

 

[RobM]

Thanks, MK. I don't think students would want to live here, not Uni territory.

 

[chapperzUK]

Have a look on Zoopla for flats close to where you might buy. That is quite cheap for renting is Essex and you could probably add an extra £100 to that.

Not an expert but I've been looking around for places to rent locally.

 

[South Bank Hank]

Chapperz is right. Otherwise, look on Rightmove.com and you'll get a feel for what you can charge. Then find a local letting agency who'll be glad to guide you on what you might expect as well as help you find a tenant.

Screening is always difficult but there are certainly precautions you can take. A letting agency will do much of the screening for you (credit checks, references, etc) but I've always found it's a good idea to meet any prospective tenant personally as you can generally get a gut feel about someone. If you don't have a good feeling about the tenant, it's your prerogative to wait for one that suits you.

Otherwise, be good and fair to your tenants and then pray they'll be the same to you.

 

[Bielzibubz]

My partner rents out her 1 bed flat in Basildon and believe me it's well worth paying the monthly fee for an agency to handle all the pre contract screening, rent collection, money transfers etc etc. In the two years she's been renting she's had no contact with the tenant whatsoever. Everything goes through the agency who will organize locksmiths, maintenance repairs etc etc should they ever be necessary.

 

[Berrichonne shrimper]

Its new so most of the normal probs will not affect you but whatever you do do not let any tennats know you live close by.

 

[lee_sufc]

For the rent you're looking at, you'll be paying around £50-£60 in fees each month to the agency.

If you're only going to rent out one flat, do it all yourself! Honestly; paying an agent is pointless. I rent out my flat and all their 'screening' is worthless! Also, by leaving it in their hands, you'll lose touch with what's happening. Stick the flat on Rightmove for a tiny amount compared to what an agency will charge, perform all the credit checks yourself (only costs a few quid) and build up a good contact list of trades.

Over the years I have used 5/6 agencies and each one of them is a waste of space - they'll pretend they're protection you as a landlord but they don't.

If you do decide to go it alone, register the tenant's deposit with the DPS and pay someone to perform an in-depth and independent inventory.

 

[chapperzUK]

Don't forget that any extra income from renting will be liable to tax.

 

[RobM]

Thanks all, a lot to consider.

 

[colonelnutter]

Make sure you do a **** in a biscuit tin and hide it under the floorboards, as a mate of mine did. Mind you his property portfolio never really took off.

 

[Berrichonne shrimper]

Make sure you do a **** in a biscuit tin and hide it under the floorboards, as a mate of mine did. Mind you his property portfolio never really took off.

And if it was in a sealed tin nor would the smell.unlike a body.

 

[TrueBlue]

Hi all, I am considering buying a flat (brand new) to rent out. 1 or 2 bed in Corringham (choice of bed's may be available).
'
What are the pitfalls of said idea? :unsure: It would be a 'cash' purchase so no mortgage to worry about. What would be a reasonable rent to charge? I would think about £550 a month for 1 bed, £650 a month for 2 bed.

How would I get a potential tenant 'screened' (sorry, can't think of a better word). Obviously I don't want the place wrecked. I live just a few yards from the development.


Thanks for any help.

Buy in Rayleigh and I will rent from you straight away

 

[GIBBO]

I'm an agent myself, 10 years experience. in fact corringham is my home town. @lee to say a agent is pointless is not true. See I dealt with loads of landlords in my time, fine doing it there selfs until something goes wrong. I agree some agents are useless. However, I suggest use an agent who is part of ARLA this way you have a point of call. If it doesn't go right. Plus they have insurance if they go bust.

proper agents will get a reference company to carry out all reference checks not just credit, they should check employment as well as landlord, also any linked address if they have been on the move quite a bit alarm bells should ring. Not only this rent guarantee should be offered on managed properties

there so many new laws being introuduce, rem u have to reisgeter the deposit, also have to use different AST pending on the deposit scheme

To say don't use an agent is rubbish. Anyway rob your lucky I'm from the area and have good contacts with agents in the area.

If u have any questions PM me more than happy to help.

 

[McNasty]

I dealt with estate agents for over 30 years and don't think I ever knew one who told the truth 100% of the time.

 

[GIBBO]

That's why I say pick an ARLA agent. Well that's unfortunate I also say do u homework before choosing an agent. A lot of people go for the cheapest fee. U get what u pay for in my industry.

I hate the stereotype estate agent, full of crap. I have meet some right idiots. I can say that I give an honest and trust worthy service. We not all bad guys. Bet u get rotten apples in different industry's it's life.

mcnasty which agents u have dealt with over the years?

 

[londonblue]

When I used to rent out a flat I usually kept the rent low so as to undercut everyone else. That way the place was never empty. I had it for three years and didn't even have one week where the place wasn't occupied.

My philosophy was to charge about £25 less per month rather than lose out on about £600 a month if the place was un-let.

Given that you'll have no mortgage I would strongly recommend that approach.

 

[DTS]

Assuming you are working and paying tax, from a tax efficient point of view you are mad to purchase a property and be mortgage free. You would create a whole load of profit which is taxable at your marginal rate e.g 20%,40% etc. Appreciate from an emotional side it might be nice to be mortgage free.

If you have that sort of cash why not either buy two properties with a 75% mortgage or buy one flat with a mortgage and keep the rest of the capital more liquid in investments etc. You could make use of other tax breaks such as ISA or Pension investment.

Just an idea and in no way advice.

 

[RobM]

I own my home outright. Interest rates are, as you know, tiny. In my view, property prices round here will rise. I don't work; I have a company pension to keep me afloat.

 

[DTS]

If you don't need the money from the rental income then I personally would consider buying two. Far more tax efficient (as you will generate little profit) and if your hunch about price rises is correct you have x2 properties set to rise.

PS - This is not advice its just my opinion.