SMF - Just Installed!

Washing Machine

Started by Armin, November 03, 2011, 09:44:38 AM

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Armin

Hello everybody,

I would really appreciate your input, please state if you're an actual landlord or not.

I'm an accidental landlord, as of next week I will have a house I have to rent out in order to cover the mortgage.

It currently has no washing machine. I am undecided as how to proceed. The way I see it, I have several options:

1. Get hold of any working used model and install it myself, cost probably £50-£100.
2. Buy a refurbished one and have it installed and also a go-to company in case things go wrong, cost £150 approx
3. Buy a new one and have it installed ca £250-300
4. Buy a new one and have it installed and get a 5 years repair plan £450
5. Buy a new washer/dryer combination and get a 5 years repair plan £600

I am currently leaning towards 5.) because I think that in the big scheme of thing it's just an extra £10 pcm but tenants would appreciate having a washer and dryer on a repair plan and that would help me find decent tenants quicker.

But it's an AWFUL lot of money for a small beans landlord like me so I'm still shying away from doing it.

Is putting up for rent w/o washing machine any option at all?

Your thought would be much appreciated.

-Armin

Jeremy

Hello Armin,

I am a deliberate Landlord.

Fitting the machine is a doddle (see http://www.helpwithdiy.com/plumbing/plumbing-washing-machine.html) if modern plumbing pipework is already in place.  There are two things the guide does not mention:
+ Don't forget to level the machine so the drum rotates in balance when spinning.
+ Use a sack trolley to move the washing machine around, especially if you have vinyl flooring.

Unless you've got wierd plumbing or a dificult space then installation fees are a waste of money.

Also, I would not bother with a warranty plan.  I've been buying good brands (like Bosch) and they far outlast the extended warranty period without going wrong.  Would have been money wasted.

I would not even think about offering a differential rent for with / without washing machine.  Makes you sound like a real Rigsby.

My approach is to let the tenant know that if they don't have a washine machine I can happily supply one.  Gratis.  You may be surprised to see how many tenants actually come with their own machines and don't take the offer up.

If you've already installed a machine and the tenant already has one they want to keep, will they be able to store it at your house?  If they can't store it easily then having to get rid of it or pay to store it may make your house less attractive to them.

If you do decide to supply a machine then I'd suggest the new / second hand decision rests with making it fit in with the condition the rest of kitchen or utility room is in.  It needs to fit in.  A second hand machine in a nice new kitchen would look pants!

I hope your experience as a landlord goes well for you, why not come back to the board ina  while and tell us how it's going for you.

Armin

Hi Jeremy,

Thank you for your reply. I understand what you're saying about quality items. Problem is that I live 250 miles away from the property, so it's less feasible for me to take the risk of things going wrong. Bosch, Zanussi, Miele or not.

Hence I was thinking that going for a lower quality brand but with a service plan might be the better option for me, as warranty repairs can be arranged via the phone while me going up there invariably would have to be on a weekend and would cost me £70 in fuel alone.

Also I was thinking by having a combination washer/dryer (no space for separate units) will be a marketing benefit.

I'm going to do it without an agent, because they seem to be just a bunch of needless middlemen who don't actually add value. £50 a month either buys me an agent who'll just take calls and make calls and does an inspection 2-4 times a year. But when it comes to any costs, I'll get stuck with them.

On the other hand £50 pcm buys me landlord (rent, legal, building, 5k interior) for £20, £10 for a washer/dryer on repair plan, £6 dish washer repair plan, £14 central heating repair plan.

I understand that to many people who see landlording as a business, spending £600 a year on this might seem lunacy. To me however it seems like a worthwhile guarantee to minimise my long-term hassle.

Opinions?

Jeremy

Hello Armin,

I made an assumption that you were living in the same town as the place you were renting is situated.  My mistake for assuming...

Your answer puts a different perspective on things.  Yes, you want your life to be hassle free and your tenants to be looked after well if things break down, so your plan for the washing machine / tumble dryer looks sensible to me - if you first check out that the tenant has not already got their own kit they want to use.

If you don't mind me asking: How did you get to be an accidental landlord but living 250 miles away from the property?  Inheritnace?  Job move?  Girlfriend lives other end of the country?  I'm feeling worried for you when you say you're going to do this without an agent.  Who will arrange viewings and get references?  If the tenant knows you live at the other end of the country, how will you avoid the risk of them taking advantage of your lack of local presence?  How will you do viewings?  I view mine quarterly, maximum interval.

I own this one place just eighty miles away.  In the past four years I've had to organise  fourteen unplanned fix-it type jobs for which monthly plans just don't cover.  Getting that sorted has, at times, been a real pain.  I suggest you need to either develop a network of local tradesmen who can help you out or link in with an agent who can let you use their contacts directly.

Armin

Hi Jeremy,

How did I end up being a landlord? A divorce, as I upped the mortgage to the max to pay out wife (she went back to USA, americans arent cheap to divorce). I ended up getting stuck with an overvalued property at a bad time. Job brought me down south. These are the fundamentals, skipping some finer details for another time perhaps.

I am concerned about being my own agent too and I do plan on quarterly inspections as well, either by myself or by using a local person (not agent). I realise it's not a great place to be in, but as I said, putting money into insurance schemes is in my opinion the better way of spending it. When things go wrong, all issues will roll off the agent's back like the proverbial duck & water.

In two years time when the current mortgage 'unlocks', I might start looking for a landlord who might wish to swap BTL properties north vs south. But for now I'll just try to do the best I can.

What sort of uncovered fixes did you have to cover?

Jeremy

Hello Armin,

Go and get a cup of tea and be ready for a long list:
- Bathroom tap broke (rather than was broken);
- Ditto kitchen tap;
- Kitchen sink needed to be replaced;
- Fence needed staining;
- Hall carpet needed to be replaced (warn out);
- Two windows went rotten and were replaced;
- Immersion heater socket went bang!
- House needed a partial re-wire following 5 year electrical survey.  And the re-decoration which followed;
- Front door lock needed replacing;
- Kitchen sink got blocked (just after tenant moved in - no way was it their fault);
- Agreed to put two new lights up in a dark hallway;
- A long neglected, large compost heap started to press against the wall of a neighbours garage - it needed to be skipped away;
- A dead tree would have became dangerous, so had to be felled professionally;
- Gas fire thermocouple broke;
- Hall carpet lifted away from the stairs and needed to be re-fixed pdq;
- Toilet flush broke;
- Kitchen waste pipe seperated from the rest of the drainage and poured water onto the brickwork;
- Replace front door (which had been successfully attacked by the weather)

This is over a 4-ish year period.

So ranging from the minor annoyance to medium difficulty to get solved.  But most of this would not have been covered by any kind of homeserve / british gas / manufacturer's warranty type purchases.

So I guess my view to risk is: Cover the important stuff, like buildings insurance and rent cover.  Everything else is why you take a rent.  Sometimes you have to put a bit back in un-planned repairs.  All of these warranty firms have to make a profit, so in the long term, you will never get back what you put in.  If you buy up all these small price schemes, you can give a serious slice of your profit away.

If you definately spend on these products you'll definately not have the money anymore.  When the unexpected happens, you'll definately get a bill and definately not have the monry to pay it.

Hope this helps you,

Armin

I am going to put a sub-set of your list under the engineers nose for I'd like to think that under HomeCare 400 the plan I am on I'd have these covered (I'll comb through their terms of service tonight.):

Bathroom tap
kitchen tap
Immersion heater socket
Gas fire thermocouple
Toilet flush (although their T&Cs cite exception for toilet pipe)
Kitchen waste pipe
Kitchen sink blockage

Your point is well taken, i.e. that it's IMPOSSIBLE to get a plan covering EVERY possibility. I realise that. Maybe when I find a fellow landlord to swap houses with, then my outlook might change. For now I just try to do what I think best. Being so far away from my property is easily the BIGGEST issue, but it's the one thing I had no choice over.