UK Landlord Forum / Life

Hi folks

I am in the process of purchasing my first BTL property.
I seem to understand the general procedure and responsibilities of a landlord, but just have a few questions which I hope you knowledgeable people out there would kindly be able to help me with.

1. Does the landlord pay any of the bills such as water and council tax rates?
2.Would it better to outsource the tenant referencing just to make sure it is done thoroughly, or can it be done by the landlord himself (just as long as he covers everything)?
3.Would you suggest paying that bit extra a month in order to enrol into a Rent Guarantee Scheme?
4.It take it that landlords need to enter a Tenant Deposit Protection Scheme. As far as I know, there are 4 types of such schemes. Can you suggest the most popular one and why?

Thanks in advance for your responses.

1) No

2) I outsource referencing

3) I dont

4)'I don;t know which is most popular

Hello Geek84,

In response to your questions:

1) The Landlord can sometimes pay the bills included in the rent (if the property is on a shared supply etc e.g if the whole block of flats is owned for example) but it is better to have your tenant pay. As far as I am aware tenants always pay Council Tax.

2) I do tenant referencing myself. I ask for employers references, previous landlords references, 3 months of bank statements (so I know if they have the money, how they budget and what they are spending it on - you don't want tenants who party all the time and spend all their spare money at Bargain Booze!) personal references and proof of housing beneifts received.

3) No, I would not pay for a rent guarantee scheme. If you manage the propety well yourself, your voids should be minimal and you can act quickly if your tenant gets into arrears. You should maybe consider this if you have mortgage committments thought that you would not be able to keep up with if your property was vacant.

4) I use deposit protection service. They are free and it is really user friendly to manager your account online.

Hope this helps.

Thanks AL1.

The property which I am in the process of purchasing for purposes of letting out is a new build and almost completed.

I will be inspecting the property before handing over the money.  Could someone be kind enough to tell me what things I need to ask/look out for when I am inspecting the new build, apart from making sure everything works ok.

Thank You.

hi should have nhbc certificate with new build. 10 yr guarantee.
look at everything point out any faults that you need fixing before
you will take possession. there are always faults with new build,
but get them fixed first.
                  cheers the slug.   

Thanks slug.

Anything in particular that I need to clarify when inspecting?

hi geek84, check every thing. run up heating system, check for leaks weeps, check water pressure ,
any faults. doors not closing properly, locks. painting, any movement cracks. roof insulation,
windows open and closing. floors skirtings , electric switch operate.showe, bath ,sealing , toilet.  its your money so check everthing.
until you are 100% happy. take notes give them a crag list. buliders expect this before hand over.  take some one else who may have more knowledge ,builder friend etc..

Thanks slug

Good Morning Folks

I visited the property yesterday,  It is nearly completed and we will be signing the completion documents next Friday.

There seems to be a bit of work that still needs doing -

1.  The floor board in one of the  bedrooms is chipped.  It was agreed this would be repaired.
2.  The plaster needs to be scrapped off from upper floors.
3.  Front door hinges needs touching up.
4.  Repairs to concrete.
5.  The colour of the tiles fitted in the kitchen and cloak room does not agree with what we requested.  The agent said she will look into this.
6.  Still need to see how the boiler works.

 :)great geek84. that's the way don't let them get away with
poor work.

Good Morning Folks

I hope you're all ok and enjoying the bank holiday.  Once again, many thanks to everyone who has offered advice do far.

However, I just have a few more queries which I would be grateful if you kind folk could help me on -

1. I will pay for building insurance.  How do I work out the rebuilding costs of the property?
2. What is the best type of (or most popular) tenant agreement that I should have?
3. I presume it is better for both parties to sign the agreement before handing over the keys to the tenants?
4. Are Housing Benefit tenants generally 'ok' with rent payments or are they a hassle?
5. How much deposit should I ask for?
6. Is it essential that I register the deposit with a Tenant Deposit Scheme?  What happens if I don't?
7. Can I just take the deposit in cash and write out a manual receipt for the tenants? (I could use the cash straight away)
8. I am thinking of taking the rent money in cash, so that I can immediately use it!  I will probably give them a rent book where I can confirm the rent received  Does that sound ok or do you think it is better to have the rent paid direct to my account?
9. Once tenants have move in, I am thinking of visiting the property every now and again just to see everything is ok.  When visiting, is it best to ignore going into bedrooms or is it worth a quick glance just to see if everything is ok?  How often should I visit?
10. I don't want any pets in my property. Does that sound reasonable?
11. Shall I let the tenants decorate the property as they like?  I don't want any 'silly' colours i.e. painting  walls pink with white spots!!
12. Finally, shall I let them hang pictures etc on the walls?  It will ruin the walls i.e. making holes.

I know the above list is (very) long, but I would be most grateful if you kind folks out there could offer some advice.

 :)hi geek 84 will try and help you a little.
1) bulidings insurance, get a special landlords insurance no more expensive than normal
they will ask what type of tenant you have working or benefits. if property is unfurnished
no need for contents cover this is down to tenants.
2) you can buy a legal pack from whs or internet that gives tenants agreement forms., for
around 20 pounds.. other way bit more expensive get solicitor to draw one up for you.would
start with six months short term tenancy contract to start. see how tenant is pays etc.
can then be extended at later date 12 months .
3) you both sign legal pack together must have witness to sign..at same time to be legally binding.
4) can only go on my experiences. try and get working professional tenant, get reference employer,bank
can get credit check done..
5) would say deposit one and a half months rent,,..
6) you must use tenant deposit scheme this is now the law.. provides protect for you and tenant.
7) don't advise taking anything in cash.. get them to pay chq or payment direct into deposit scheme you set up.
8)would not take the cash direct or try and collect at door. can be a minefield .for different reasons.get tenant to set up direct debit same time every month into you bank,
9) would take photos of all parts of property before tenants move in, get them to go over and sign inventory
of contents of flat, like fittings cooker, hob  boiler etc.this can be checked when they move out.
every 3 months is a good time to check condition of property,. must notify them a few days in advance.
keep spare sets of keys for every lock in property give them two sets. any loss of keys is charged to them..
10) state on tenancy agreement that no pets are allowed at property. this is reasonable ,dogs can do a lot of damage to property chewing ,scratching,.
11)don't let tenants decorate your property  .you do not no there skills level. colours etc.
12)they can affix pictures etc all holes must be repaired on leaving property.
geek 84.. there are a lot of rules regulation with renting  ,being you first time may be worth you finding
a good letting agency, local to property. if they are a good agency there advice is worth paying the extra 10%
there are gas safety cert, appliance safety check s, deposit to set up. on-going  maintenance problems.

Thanks very much Slug

also. geek 84. with building insurance  always over estimate rebuild cost
if property is worth 100,000 then put insurance value at 140,000  always
over value nothing worse than being under insured..
                                 cheers the slug.

RGI is the MOST important thing to have on a tenant.
Everything else is secondary though important.
Use LRS
Don't bother with a LA referencing; it is useless.
An RGI check along with LRS will suffice; plus you see documents; ID etc.
No RGI means you will be on the hook if your tenant ever stops paying rent and it WILL take about 8 months to evict tenant.
Hope you have enough money to pay the mortgage whilst you are evicting.
And don't think for one moment HB will be paid to you after 2 missed rent payments.
If the councils wishes to converse with her and she refuses they will suspend the claim until she does.
A bestinsurance RGI policy will cost you £99 per year for £50000 of cover including legal costs.
Re you property ask if the internal property drains have been checked for rubble.
Also ask for the radiator mixture to be checked as they save money by not putting it in and 2 years later you have rusted through radiators!
Note that is matters NOT how well you manage a tenant; if they don't or won't pay you  rent ALL the management in the world won't save you.
RGI ONLY is GUARANTEED to cover this on the tenant or a guarantor.
Don't listen to anyone who states otherwise they are talking out of their arse.
£99 GUARANTEES that you will ALWAYS receive the FULL rent though usually about 2 months after the RGI claim has been submitted.
Any tenant you take on who cannot qualify for RGI is your risk.
Would you have the ability to pay the mortgage if the tenant stops paying and it takes you 9 months to evict.
AVOID HB tenants like the plague;  unless they are not of working age and  not available for work
The DWP now sanctions claimants which could mean NO HB
Ones that don't ever work and can never work are OK.
But you won't obtain RGI on them.

Many thanks indeed Paul, for all your advice.