Q: Hello All
Im looking for some advice about a decision I have very soon.
: confused:
I go travel in February and I have a 3 / 4 bedroom house that I need to rent!
I way can be to make 2 years.
i am considering 2 options.
1. Lets go through an agent who manages the property. [This will lead to a monthly loss of around ￡ 200 after paying my mortgage, insurance, gas-cert, etc.] I want to avoid, but I have a certain amount loss.
2 money to cover. Renting the rooms are individually and find Internet resources tentants www.easyroomate.co.uk as I was leaving someone who I trust in charge of getting new people in the house and care for all home matters! By doing this I probably would not without monthly loss.
The main advice that I should make with respect to the second option. If I let the 3 / 4 separate rooms. What should I do to:
a. make everything legal and board
b. interest
c protect my own. protect my tenants
d. any advice requirements
Your opinions and suggestions are greatly appreciated!
i am generally thinking that a managed option through a letting agent is the best option.
The fees over a period of time depend on how long the [e.g. family] tenants stay in the property. The letting agents charge 50% for the first month, and 10% for subsequent months.which work out at 16.6% over a 6 month period. If the tenant stays longer the rate will obviously reduce the longer they remain in the property [12 months in proprty reduce the amount to 13.3%]
The main thing i am looking for is advise on the multiple occupancy option!!
Thanks to gck and guy for the interest and advise
I would be inclined to negotiate with a letting agent for managing the property. That way you know it is in safe hands and can relax. Mixing friends and business is a recipe for disaster.
Round here you would pay 15% of the annual rent for letting and management. Let to one family and you will avoid HMO problems.
Glad to see that you've costed the agent option up throughly, many don't, but unless you purchased recently with little deposit I'm surprised your monthly shortfall is that high. How much void time did you allow for? If you've a repayment mortgage, rather than interest only, then at least the 200 shortfall is going towards paying the mortgage off?
You friend is very kind if they are going to do all of this on your behalf and not want any of the extra ￡200/month you will be making.
New legislation has recently been brought into affect for 'houses of multiple occupancy'. If you let the rooms individually, then it is likely then you will need to make changes to the property such as fire alarms etc.
Agents do take a big chunk, but a decent agent will also take a huge amount of the stress out of the process. Do you really have the time to do the 50 or more viewings you will need to do to get the place initially let?
George