alchris

Hi everyone, as we like alot of others cannot sell we are going to look into renting. Just wondered if all of you that decided to go down this route might have any advice or information that may help us in our decision. Did anyone find the distance was a problem? bad tenants? Also what did you do when you decided to then put it back on the market?
Would be very interested in hearing your good and bad! comments
Cheers Chris

luvwelly

1.You need a good managing agent - expect to pay them up to 10-12% of the monthly rent as the distance is insurmountable.
2. Make sure you can cover your UK mortgage in the event of there being no tenant in situ or one in default..in 4 years of being abroad, I have had to evict one tenant and it involved a 6 month period of no rental income. This may be less risky if your property is of a type in demand in your area (mine wasn't). You can't always get insurance cover to cover rent default as it depends on the tenant passing a credit score.
3. You often need to get your mortgage company's permission to rent to a third party..they may insist on changing your mortgage product and interest rate to for instance a 'Buy To Let' one.
4. Your house insurer may refuse to cover your property with tenant in situ but Legal and General gave me Landlord's cover over phone so not too much of a problem.

5. You have to have an annual Gas safety check and also at least initially an electricity safety check but a good managing agent should advise and even arrange these on your behalf.

6. You have to account to the UK Inland Revenue for your rental income as if it were a business and there are special forms you can fill in so that the tenant pays their rent gross to you not net. You can only offset certain things against the income before determining your profit () but mine has never incurred much of a tax liability.

I don't know how you go about organising a sale from this end - it can be done though as I know people who have done it - I suppose legal documents for signature can be couriered. I have no intention to sell.

You absolutely must ensure you can meet the UK mortgage payments come what may, or you risk losing your home whilst you are sat thousands of miles away. The good news is you soon lose any emotional attachment you may have had to the property...I was amazed how quickly this happened....out of sight out of mind and all that.
Good luck - it is quite a hassle setting it all in place at first but then it usually ticks along nicely.

Margaret Parkinson

Our daughter & son in law could not sell so they rented it out short term (2 months) but left it on the market. An agreement was set up between both parties and they gave us Power of Attorney. They did not use an agent so the rent reflected this. They sold 12 months later and there were no problems. The Power of Attorney cost £100. We were able to keep a check on our daughters house and it was written in the agreement that we inspected monthly.

My son had to work abroad some time ago and left his house with an agent. He was away 18 months and the house was a disaster area when he returned. It cost quite a lot to put it right and of course the letting agents do not contribute at all.

June.

teebrown

We have rented ours for 3 years now, the house is in Scotland and we live in hampshire, my sister in law keeps an eye on it for us and so far we have had 4 tenants in, all have been good. We rent it ourselves, we went on the net and got a contract under a Landlords website, we do have a buy to let mortgage and when someone moves in, go with your gut feeling and ask loads of questions, don't feel embarrassed about it and make sure you do your reference checks, I also got a current family members address, so when they do leave we can forward on bills etc to them. When they move in, we make sure they sign the contract with the current gas and electricity numbers on and then inform the local council for the council tax, I make sure that the gas and Electricity is put in their names right away. I also go around the house with an itinery and make a note of all little marks or damage on the carpets and walls and make them sign it with a witness. By law you are suppose to put their holding fee in a neutral government account so there isn't any argument when they move out. If you look under www.moneysavingexpert.com they will advise you on landlord insurance companies.

So far, touch wood, we haven't had any problems, but then my sister in law keeps a tight rein on things.

alchris

Thank you all for your experiences and advice. Had someone round from a letting agency to explain things, not sure if this would work for us as we will have to remortgage in order to take a bit with us and basically with that and the existing mortgage to be paid every month with think it may be a bit risky if we then have months with no tenants!
We feel time is running out for us but are determined to give everthing a shot!
Well you only live once! and at the moment I'm glad you do as I dont think I'd want to go through all this again!!
Thanks again
Chris.

2poor4this

Good to see you're still hanging in there, All the best to you

alchris

Yeah, still here! with a few more grey hairs!! How r things with you both? Must be nearing the ITA submitting?
Regards to you both
All the best
Chris

2poor4this

We dropped off our ITA at New Zealand House last Thursday. Sort of half heartedly looking at jobs now, although we dont really want to go untill February, preferably March so I think it may be a bit premature yet. still nothing ventured nothing gained.

I wish it was just grey I had to worry about

If you find any good info on the renting thing let us know as that's the route were going.