UK Landlord Forum / Life

Hi everyone,
After hours of reading-up and preparation we're all ready to embark on our first BTL

Would the following time-line seem consistent with a smooth BTL transaction, we'll be managing the let ourselves and if anyone can offer any other advice or pointers for us look out for we'd be eternally grateful.

House ready to rent, landlord insurance bought, gas safe cert done

1) Register property with an online agent & proceed to advertise
2) Receive interest from potential tenant
3) Proceed with a viewing in person at the property with potential tenant/s
4) If agreement on both sides request references /checks from tenant
5) Complete & sign Tenancy agreement (one copy each) 
    + Request deposit & first payment
6) When funds clear meet tenant at property, go through and sign Inventory (one copy each), take meter readings & hand over keys
7) Notify council of council tax name change
8 ) Put tenant deposit into DPS within 30days
9) Serve tenant with an S213 notice for deposit
10) Have a happy and long-standing landlord/tenant relationship 

**Updated Version **

0) Compile a list of potential tenants, definite no-no's etc
1) Register property with an online agent & proceed to advertise
2) Answer questions, evaluate applicants, weed out unsuitables, eventually source a positive tenant.
3) Proceed with a viewing in person at the property with potential tenant/s
4) a) With agreement on both sides, source references/checks with a tenant contribution
     b) Secure a 'holding deposit' (would 50% of 1st months rent be fair ?)
     c) Supply draft AST

delay

5) a) Receive Deposit & 1st Month's Rent (less any holding deposit)
     b) When above funds have cleared, Complete & sign Tenancy agreement (one copy each) 

6) Tenancy, Day 1, meet  at property, sign Inventory (one copy each), take meter readings & hand over keys.

7) Notify council of council tax name change
8 ) Put tenant deposit into DPS within 30days (unless this could be done previously if funds cleared)
9)  Serve tenant with an S213 notice for deposit
10) Have a happy and long-standing landlord/tenant relationship   

Hi

Looks good for the ideal scenario. But it never seems that straightforward.

#2 - add - receive interest from unsuitables and try to weed out before viewing. Plus answer stupid questions about which sky channels are available and broadband speed etc.

Between #3 and #5 - Have you thought about a 'holding deposit' as it's possible there could be a month between someone saying they want the property and them moving in. In my experience no-one wants a property immediately and they're unlikely to pay the deposit / one months rent immediately as they would not sign the contract for another month (also what do you do about the DPS with no signed contract). Makes the tenant think twice before taking another property if they've given a deposit.

Also consider  a checklist of who you're willing to accept in your property as it's possible the first viewer might not be the best fit for you. Consider delaying tactics if you're waiting for the right tenant!

For #4 I ask the tenant to pay £25 towards vetting to avoid time wasters and credit checking someone who is likely to fail. Consider what your going to do if checks are ok but not brilliant (pull out and start again maybe loosing several weeks rent or carry on hoping for the best).


Good luck

C.

on step #5 I would not sign a contract and then ask for first payment and deposit. 

Despite them not having the keys If you have both a signed contract then after commencement they could argue they are tenants.

Personally if a propective tenant did not make the first payment and deposit up front I wouldnt even sign.

Between #4 and #6 there will be a delay... it's always different. This is the time that I always provide the Tenant with a copy of the draft AST for them to review. I am sure you would do the same, but just forgot to mention it. You can't shove an AST in front of someone on the day they get the keys and say "just sign that".

Part of #5 and #6 are backwards.

You request deposit and first month of rent from the Tenants first. Then, when you have it all safely tucked away, you meet the Tenants and get them to sign the, previously reviewed, AST and go through the check-in procedure, culminating in handing over of keys. What you do not do is get the AST signed before you have received your money... as Martha says.

P.S. - if the deposit has been provided, say, a week before the check-in and handover, then it's very likely that you will be fully prepared for handing over the Prescribed Information (and getting it signed) and Scheme's Ts&Cs on the same day as well. I try to get whatever needs signing done all on the same day.

Deposit received date can be different to AST commencement date - no issue there.

Thanks for everyone's input, I've modified the original post, does that look better ?

Just to say that I am new to this, but did the same as Hippogriff suggested.   A week before the agreed signing I gave the tenant a copy of the AST (with DRAFT written across it), the PI form to read and the DPS t&c to read all prior to meeting up for signing,

curtlyb - looks much better from what I can tell. As far as what percentage of deposit goes, I signed my recent AST 48 hours before commencement and asked for 100% deposit before signing (as well as first months rent). Not sure what others do.

curtlyb is differentiating between the deposit and a holding deposit. I can't really advise here as it's not something I do. I always felt they were more trouble than they were worth... if the tenancy goes ahead it changes nothing, but if the Tenant decides to pull out... do you not think there's going to be argy-bargy about them effectively losing 50% of a month of rent? Even if it's quite clearly explained to them, even if they sign something... if they have to (or choose to) pull out, I always figured that keeping the holding deposit would be troublesome. If a Tenant pulls out I'd be miffed... but I'd shrug my shoulders and move on. I am confident enough in the properties I have, and manage, to reckon they'll go speedily.

Heck, with Generation Rent upon us, any spick-and-span property should easily allow the Landlord to have a choice of Tenant.

I was viewing some properties last night (3) and two of them were in a right state... I'm looking for my next property to let out and I'm always open with the vendor, last night one woman was saying "oh, well, as you can see, this is in move-in condition" and I was nodding politely, all the while thinking to myself "this is awful"; there are properties I've seen for sale that I would not consider letting to another Human Being when I'm at my most nasty. The other property was excellent and I made an offer to the vendor there and then... they're mulling it over, but I'd be really pleased to have that property and to show prospective Tenants around it. I am sure it would allow me to have a choice of Tenant and that's what I like.

I usually ask for £150 holding deposit.

The rental is £495 per calendar month and the depoict is £750.

I have the £150 holding deposit, non-refundable whilst all checks/referencing takes place, then receive the £495 plus remaining £600 deposit on the same date the AST is signed, inventory checked, meter readings taken, keys handed over.

Quote from: firefly2184 on September 12, 2014, 09:35:30 AM
I usually ask for £150 holding deposit.

The rental is £495 per calendar month and the depoict is £750.

I have the £150 holding deposit, non-refundable whilst all checks/referencing takes place, then receive the £495 plus remaining £600 deposit on the same date the AST is signed, inventory checked, meter readings taken, keys handed over.

Have you ever had issues with money not clearing/defaults if you receive funds, sign & hand over the keys on the same day ?

No as I have always been given cash

 

The contract I signed recently commenced on 6th September. We met on the 4th to sign after tenant had had a chance to read the contract and set up a standing order.  First payment cleared in my bank on 4th (checked prior to us meeting to sign) and the tenant was instructed to bring the deposit in cash to the signing..