UK Landlord Forum / Life

Hi
Apologies if this all sounds rather basic to many of you but I am helping sort out getting a property rented in the market. Ideally for students but may widen it out to professionals and this is all rather new to me.

For students I get the feeling that all bills inclusive is quite an appealing factor and was thinking of going down this route. At the same time I was thinking of taking on board an agent to help with the rent collection and repairs etc.

So basically my questions are:
1) How do you insure yourself against high bills if you offer the all inclusive route. I don't want students to rack up high bills for the landlord to then have to pay. Is it better to use pay meter options?

2) How much will an agent typically take as their cut. I have read approximately 15% of rent.

3) Are there any other issues I should be thinking about

Again, apologies if this all sounds rather elementary but I am rather new to all this

Thanks 

1) Never a good idea. I have never done it and been burned, but I have heard some horror stories of electricity bills going sky-high from students keeping numerous computers (basically a small server farm) turned on 24 / 7 with all-inclusive bills.

2) 5% to 15% - as you say, depends on the service you ask for... some Agents can be quite bespoke, but it's never a good idea to use an Agent unless you absolutely have to - i.e. you are completely naïve (in which case the Agent is likely to screw you over - in charges and uplifts / kickbacks for repairs etc.) or are at the other end of the country (usually not by choice).

3) Lots. Please start reading plenty, be careful of the things that are Landlord obligations and do them property to avoid things coming back to bite you months / years down the line. 

With Students lets be careful with supply and demand.

With the introduction of the higher fees numbers declined dramatically, and have left in Plymouth a considerable number of Students lets empty and with for sale signs outside.

These things can change of course, but if I were you I would go for something that goes below the HMO rules, say 5 single rooms, which you could get in a 3 bed with 2 receptions at a push.

Then if it doesn't work as a Student let, it could as a 3 bed.. 5 students paying £70 a week for 40 weeks, £8200, less bills, as a house let £650 a month is £7800, and no bills.

If you really are green, then stick with a nice 3 bed that you would live in if things hit the fan. ( it does happen) Also avoid Agents if you possibly can, they charge you and the tenant for everything, twice......

Make sure you buy the best you can, paint everything white, and take everything off the walls, leave no furniture, shelves, pictures NOTHING. Agree tenants can decorate to there taste, but it has to be white when they leave....

Take out Homeserve style insurance on Boilers, plumbing, electrics, drainage etc, get specialist Land lord insurance, get life insurance on any borrowing, make sure you are honest with your lender that the property is let out.

I like to gift them a toilet seat and shower curtain on moving in, but it's a gift.....

Good luck!

Depending on your budget, try and not rent an HMO.
Too many customers all of whom don't value your property (and in the case of students lack basic experience of money and hygiene).

Best tenants (for me) are small family units, ideally with a child in the good local school.
So look for a property that would appeal to someone like that (do you know which are good local schools).
Something near a bus stop or shops.

Read lots and lots about  being a landlord, there's a lot you can mess up just not knowing.
Insurance and deposits particularly.
Unless you know an agent personally, do it yourself.
It's your property and you want someone you've seen and decided to rent to.

Rent for a short period at first (6 months) and (this is probably rule one)
don't rent to someone to help them out. When you're renting a property, everyone's got a mate who needs a place.
There's a reason they need a place (and you don't want to find out what it is).