6 months away - should I let the house?

[LaurenceK]

We have a lovely little fishermans cottage 100 yards from the sea in Emsworth and can't decide if the return from from renting it out for six months would justify the risk of damage/theft. I have put it up on the For Sale forum but would love to hear of any one elses experience.

 

[yachtbits]

This to be aware of,

Just because you give a 6 month tenancy, it does not mean the tenant will vacate on your return. If they decide to stay put, you will have to go to court to evict them. Depending on their circumstances, this could take many months and cost a fortune. (which you probably won't recover)

Damage. It can go from a beautiful property to totally trashed in a matter of weeks. Don't question this, just believe me!

Who is going to "manage" the property while you are away? have you calculated this cost?

Will your insurers allow you to rent?

You will need gas safety certification and electrical certifcation in place to cover yourself if something goes wrong.

You will need a solicitor to check tenancy. One slight mistake and you will struggle to evict.

I am just scratching the surface for you. Residential Letting is a minefield and I would not recommend anyone rent their own home. It should only be done on a commercial basis with property you have no attachment to.

The only option I would recommend for you, and this depend on location, is holiday lets. Holidayers will spend little time in the property and will generally treat it with respect. The return is better, although you will need an agent to do key handovers and cleanthroughs. Much like yacht charter.

Kevin
Residential Landlord 15 years

 

[tcm]

a friend recommended http://www.holiday-rentals.co.uk/

 

[ColdFusion]

Have had no problems from our tenants (so far). I think most people are decent and will take reasonable care of the place they live in but you do hear horror stories...

If you do decide to go ahead you'll need to:
- Inform your buildings/contents insurers (you can take out landlords insurance to protect against unpaid rent and damage).
- Inform your mortgage co if applicable.
- Get a gas safety cert from a CORGI registered plumber/heating engineer.
- Get a test cert from electrician.

Using a (good) letting agent will make the process easier if you haven't done it before and/or if you're going to be away, but they don't work for free - typically 10% of monthly rent for a full management service + fee for finding tenant (shop around). They will offer advice regarding setting the rent and the good ones will carry out checks (employer/credit reference agency etc) and will give you the opportunity to meet/vet the prospective tenants.

 

[Stingo]

If you join the National Landlords Association, they will give you much advise for free.

 

[Becky]

I have been wondering about this too. What puts me off the idea is that being a 40% tax payer I wouldn't get much out of it, after the agents have taken their bit, and when I come home, there is the upheaval of replacement of furniture and carpets, repairs/ replacement to white goods and redecoration.
So I would rather leave the place empty, but under the care of family, so that should I need to come home, I have a home to come to.

 

[ColdFusion]

[ QUOTE ]
If you join the National Landlords Association, they will give you much advise for free.

[/ QUOTE ]
Good source of info - but they won't manage the property for you while you're away.

 

[Stingo]

True, but then there are an abundance of estate agents wherever you live. Some might be good and might actually do a proper job of reference checking. Some might even be honest and not overcharge when they call the plumber in. You just never know your luck.

It's probably more important to check the estate agents credentials than your potential tenants IHMO

 

[ColdFusion]

Have to say that when we started out I spoke to several letting agents several times over a period of a few weeks as the purchase of our first buy to let property progressed. In the end it was easy to narrow the choice of agent down to one. Have only had good experiences so far - including a plumber via the letting agent who charged the same as the cheapest of 3 direct quotes I got myself (just to check I wasn't being ripped off).

Our plan was to appoint an agent to manage the properties well before leaving the UK so if anything went pear shaped we'd still be able to make amends - not so easy to do when you're 000's of miles away. As it is, it all seems to be going OK.

There's good and bad in every trade and profession. As with everything, it pays to do your research.

 

[Sailfree]

I think you will find that the agent would use a short term tenancy agreement. This is for 6 months but the date is from commencement therefore you must have a tenant waiting to sign for 6 months on the day you leave or it is likely to be 7 or 8 months actual minimum period.

 

[anglo_saxon]

even a good tenant will not care for your property as much as you. you will need to accept the fact that a bit of decorating may be required on your return and somethings may need to be replaced.
no bank will give you the returns that can be achieved from renting out your own place.
in the past i have let a relative take care of this as i would rather give him 10% of the rent than give it to a company who in the end dont care to keep the property in good condition.

 

[AlexL]

I've let properties in the past, and whilst there are horror stories - I wouldn't let them disuade you. A proper agent will manage the property for about 15%+VAT of the rental, which includes insurance to pay you, should the tenent not pay, they will also check references and run credit checks, and deal with the contracts.
You will need a gas safety certificate (cost about 50 quid), electrical check is not mandatory, but you may want to cover yourself.
Don't worry about tax - the mortage interest (if you have a mortgage) is 100% detuctable, so you only pay tax on the 'profit' over this - and a bit of maintenance and fees will probably take care of most of this. If you don't have a mortgage and you are going to let long term it may be worthwhile remortgaging. Do a spreadsheet and some maths to check. The tax savings and interest earned on the money may well significantly outweigh the cost of borrowing.

HOWEVER I notice you say you are going away for 6 months - it may take that long to let it. Where I am (chelmsford) the housing market is dead, non-existang, stagnant, depressed - choose your own description! Also if you are emotionally attached to the property It may not be the best thing to do.

 

[jema]

hi,
this is weird,
my friends sister is looking to rent in that area for a short time , as her husbands mother is very ill & lives somewhere near emsworth
i was asked as i own properties in gosport area
very respectable couple, not sure if they've found some where since asking me
pm me, with some basic details, if you want me to find out if they are still looking
Jane

second thoughts I'll send you my email adress as its only when i get time; i log in here