Letting market at the moment

[Moosey]

Hi,

 

Just had a couple of questions about letting a house.

 

Firstly, what is the market like at the moment? Are there people looking for property to rent? If I were to put a house I own up for rent, would it be likely to be taken?

 

Secondly, how do I go about it? Do I speak to a letting agent/estate agent, or advertise privately? Would prospective tennants prefer private let or through a big chain company?

 

Thirdly, how long is the average tenancy agreement?

 

Finally, if I were to let a house - what would a rough estimate be on the monthly rent - its a 3/4 bed (one "study" but big enough to be a bedroom), 3 x w/c, shower room, bathroom, 3 story in S2. Built a year ago.

 

Reason I ask is that I've potentially got another property now (or at least a share in one - inherited) that I could live in quite happily, whilst renting my current house out. Any ideas on rough value, and I realise its rough, or answers to the questions above would be appreciated.

 

Thanks

[Square-Bashe]

Moosey, it's up to you if you use an agent or do it privately. An agent will deal with the whole process from finding a tenant through to management of the property if this is what you want.

 

They will usually do 2 different services, a let only and a full management service. The let only could be about £300 including VAT.

 

The fully managed service will find a tenant, reference them, prepare contracts, move them in, carry out the EPC, inventory. If any problems arise during the tenancy they will sort them and also issue the required notices. They will deal with the deposit, putting it into the government secured account for the duration of the tenancy. They may charge a small set up fee and then about 12.5% ish of the gross monthly rent. There may be other chargers as well.

 

Ring round a few and see what they quote you and what sort of services they can provide you with.

 

The letting market is good at the moment although over Xmas it will be slow as people are concerned with shopping more than looking for houses! Nothing to stop you marketing it at the moment though.

 

If you look on Rightmove you will find properties in the area you are looking for and you will be able to get a good comparison.

 

Speak with a few agents and see what they have say, compare their charges as some agents charge a fair whack and some charge a more reasonable charge - at the end of the day they all do the same thing. Check for reputations as well. There are a few threads on here that you could look through to see who is good and who isn't and what fee's they charge.

 

Best of luck!!

[Moosey]

Thanks for your advice! Much appreciated!

 

I'm really tempted, as I could make some extra cash, so I think I'll have a look into this.

 

Thanks

[Square-Bashe]

No problem!!

 

Just remember to check things like your mortgage company are fine with you renting your property out and the cost that you'll need look at such as gas safety certificates. Your chosen letting agent will be able to explain all of this to you.

[Moosey]

I asked the mortgage company who were fine with it, as I'd effectively be moving into a house that is already mortgage free, so my theory is that I pay my mortgage on this place as usual, move into the free place, someone rents this place, and technically pays my mortgage! Seems a little too good to be true, but if it works, it'll be great. Plus in a few years when the market picks up again, I can sell one of them. I'm going to call a few letting companies and ask them about it I think.

 

Thanks SB.

[Square-Bashe]

I bet there a few people who wish they could be in your position!! When you have a tenant you'll be pretty much 'mortgage free' - perfect!!

[gnvqsos]

I do not wish to contradict the respondent but I do not think it is a good time to rent property-at least from your viewpoint.In many parts of the city empty houses languish untenanted.For example many parts of Crookes have been deserted as students have opted for new -build properties both in town and on the new campus area.

 

It is not simply matter of letting but you must ensure your rent can cover your costs.

[Square-Bashe]

The student market is slightly different to the private rental market, however I do get your drift and your point is valid.

 

Properties on the development that I think Moosey is talking of, in my experience, do let well. Provided that the rent is reasonable and of course only do it if you can cover your costs!!

[Scottyb]

I'm in a similar position, well not inherrited a property but decided to move back to parents rent free

 

I think its a great time to rent property - So many people who viewed my property said they couldn't afford to save up deposits and didn't want to risk buying at the min. Within a couple of days of being on the market i now have a tennant secured for at least 12 months!

 

Good Luck, sure you will be fine

[Charlotte_24]

The student market does seem to be struggling a bit with all the new build apartments available, some landlords are struggling to compete.

However as Scottyb says, people are now opting to rent as they are more reluctant to buy/can't get a mortgage etc. As long as your house is decent and realistically priced you shouldn't have much trouble letting it out.