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Privately Letting Your House


Stevo985
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If anyone takes any notice of my Off Topic ramblings, you may be aware I'm prepping to sell or let my house.

I've now had someone I know approach me looking for a house to rent. They should be good tennants and are looking to pay the sort of rent I'd be looking for.

Has anyone got experience of letting their house privately, i.e. avoiding estate agents?

Am I letting myself in for a nightmare or is it a prudent way to go in avoiding letting fees etc? 

I'm particularly interested in the legalities of it. Like how do I enforce a 12 month tenancy if I'm doing it privately?

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2 minutes ago, Stevo985 said:

If anyone takes any notice of my Off Topic ramblings, you may be aware I'm prepping to sell or let my house.

I've now had someone I know approach me looking for a house to rent. They should be good tennants and are looking to pay the sort of rent I'd be looking for.

Has anyone got experience of letting their house privately, i.e. avoiding estate agents?

Am I letting myself in for a nightmare or is it a prudent way to go in avoiding letting fees etc? 

I'm particularly interested in the legalities of it. Like how do I enforce a 12 month tenancy if I'm doing it privately?

Stevo, its all pretty easy. 

you will be able to find templates for contracts online but what more do you think an estate agent can do that you cant regarding enforcing 12 month tenancy?

A book called Successful Property Letting: How to Make Money in Buy-to-Let by David Lawrenson would give you all the info you need

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Pretty sure you can download standard rental template contracts online that covers all the basics. You both sign it then thats a legally bound agreement, I think.

Only nightmare risk comes from the tenants themselves. If they arent dicks, I think the paperwork bit is relatively uncomplicated. Sure someone with more knowledge will correct me though

 

Edit: if you take a deposit, you have to hold it with a registered deposit protection scheme iirc, but that shouldnt be complicated

Edited by Rodders
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3 minutes ago, Rodders said:

Edit: if you take a deposit, you have to hold it with a registered deposit protection scheme iirc, but that shouldnt be complicated

there are 2 schemes, custodial as you per yours above and Insurance scheme where you can just pay insurance for it, then you can keep the deposit ( have to give the scheme administrator information about the deposit and the tenancy)

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The tenancy deposit protection info is here.

Quote

Your landlord must put your deposit in a government-backed tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:

Quote

Once your landlord has received your deposit, they have 30 days to tell you:

  • the address of the rented property
  • how much deposit you’ve paid
  • how the deposit is protected
  • the name and contact details of the tenancy deposit protection (TDP) scheme and its dispute resolution service
  • their (or the letting agency’s) name and contact details
  • the name and contact details of any third party that’s paid the deposit
  • why they would keep some or all of the deposit
  • how to apply to get the deposit back
  • what to do if you can’t get hold of the landlord at the end of the tenancy
  • what to do if there’s a dispute over the deposit

 

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44 minutes ago, zak said:

Stevo, its all pretty easy. 

you will be able to find templates for contracts online but what more do you think an estate agent can do that you cant regarding enforcing 12 month tenancy?

A book called Successful Property Letting: How to Make Money in Buy-to-Let by David Lawrenson would give you all the info you need

Cheers. I dunno what they do, didn't know if maybe they had lawyers involved or anything. 

 

So say I made one of these onlines contracts, got them to sign it saying they'd stay for 12 months, and then they **** off after 4. Would I be able to use that contract to basically sue them for bailing?

 

 

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44 minutes ago, Rodders said:

Pretty sure you can download standard rental template contracts online that covers all the basics. You both sign it then thats a legally bound agreement, I think.

Only nightmare risk comes from the tenants themselves. If they arent dicks, I think the paperwork bit is relatively uncomplicated. Sure someone with more knowledge will correct me though

 

Edit: if you take a deposit, you have to hold it with a registered deposit protection scheme iirc, but that shouldnt be complicated

Cheers. I knew about the deposit thing. I had a lodger and wasn't sure at the time if i had to hold his deposit in the same way (you don't).

 

Tennant shouldn't be a nightmare. I know her fairly well. She'd be living there alone, afaik, with her two kids. She should be no bother.

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Yup, if there's no break clauses in the contract, they're liable for rent for the 12 months, you can usually get a solicitor to review a contract of the kind of length this will be for under a hundred quid, if you're in any doubt, but a boilerplate one online should do the job.

Edited by Davkaus
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1 minute ago, Stevo985 said:

Cheers. I dunno what they do, didn't know if maybe they had lawyers involved or anything. 

 

So say I made one of these onlines contracts, got them to sign it saying they'd stay for 12 months, and then they **** off after 4. Would I be able to use that contract to basically sue them for bailing?

 

 

Theoretically yes, but you probably wouldnt, its alot of effort and not usually worthwhile. youll have their deposit, thats about it. try get knew tennants in.

The above means the most important part of letting is making sure you bring the right tenant in, so make sure you have a good feeling about them (which you seem to) and their references are up to scratch (contact references and make sure they arnt just a friend)

With regards to agent and no agent, i would suggest to most people to manage themselves if they can afford to time wise and live locally. Youll probably want the details of a handyman for any issues with his own keys if possible.

That book i suggested will tell all you need to know and more, its really helpful

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As a former renting tenant, id never sign a 12 month contract unless there was a mutual notice period of at least 4 weeks for both sides. It's to protect both sides so as long as you agree it, you'll be fine.

Other than that then you should be ok and in the right if they break the notice agreement and sod off early.

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Going to remortgage as found out there are significant fees on my current mortgage if I let the house.

 

A lot of "buy to let" landlords seem to get an interest only mortgage, might look into that.

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It usually makes more sense from an investment point of view, presuming you believe the property will increase in value over the time of your ownership.

Alot of Property investors start with 1 renting out like you do on interest only, saving the excess payments. If your house goes up in value over the next 3 years, remortgage and use that money and savings for a deposit on another house. saving and waiting another 3 years to remortgage both houses to buy another and so on till you have a large portfolio.

One just has to make sure they dont over-leverage themselves to a point where they cant afford a sufficient rise in interest rates

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