I will be moving to another country next year and after much reflection I thought renting out the property I have in England which I owe without any mortgage may be the safest option for a plethora of reasons.
To earn some much-needed extra money, and also to hopefully take advantage of when the property market will eventually bounce back.
It also enables me to move back if my move is not successful.
Having said, renting seems a bit of a minefield for the uninitiated.
As I will be leaving on the other side of the world, I have no option but to opt for a fully managed letting agent.
Would a letting agent draw up a tenancy agreement with their compliance/legal department, or is this something I must somehow draw up myself?
Further to the above question, I do have EICR when I bought my current property in early 2021 as the electrics needed a complete overhaul would this suffice for the next tenant in 2024, or would I need to have a new EICR?
With a gas safety certificate I have a boiler certificate from 2020 and a boiler guarantee which is checked every year will this also suffice?
Whilst a fully managed contract with a good letting agent will take care of most things, it would still be important for you to do some training to understand where you are still liable and what to check-up on the agent. Finding a good agent is the difficult part. My belief from many years reading and answering questions on various landlord forums, is that the majority of letting agents are not up to the task. As the legal and regulatory complexities have increased, the number who are up to it has become fewer and may now be a small minority. Unless you know what you’re doing and stay on top of them at all times, you will likely be out of sight and out of mind and if you get bad tenants, your anxiety levels will increase dramatically when you are unable to just pop over to sort things out. If it were me, I would leave it empty, but I understand that this may not be an option for you. I can only wish you luck.
boiler needs certificate every year. check elec cert to see what it says . mine are for 5 years let the letting agent draw up agreement if they are going to manage it READ their contract with you Carefully. They may put in a clause stating that as long as that tenant is there you cannot cancel their management without a penalty
yes as long as you pay the council tax. Insurance need to be told and may increase or decline the cover At least if you need to return it will be there for you without need to evict
You will need empty property insurance, which will have conditions attached such as monthly inspection and/or draining down all the water tanks and turning off the energy supplies etc. Is there are family member who could check it periodically for you?
Hi Nicholas I can see your dilemma, but trying to rent whilst living abroad can be problematic when things go wrong. We have always kept our properties locally for this reason. All this said my son rented a property in Newcastle for 10 years without a problem maybe due to the fact he knew the agent personally. Hope all goes well, leaving it empty has its issue’s, previous landlords have highlighted, full council tax after the grace period etc.etc.etc.
I was an overseas landlord for many years. It worked well as I had good tenants. However, the risks are high, especially for a newbie. Relying on agents is really all you can do, unless you know good tradespeople for when things go wrong and have someone you can trust to find new tenants.
All that said, leaving a house empty carries its own risks…
I am a landlord of 28 years’ experience, now living overseas with 18 properties in the UK, using a full managing agent. From my experience I doubt you will find the perfect agent to manage your property to your full satisfaction. However, as you own the property unencumbered you have little risk in financial terms not having to service a mortgage. Of course, there will be expenses, fees, repairs, insurance, etc. but you would have some of these plus council tax on a vacant property.
As long as you are prepared for the property to deteriorate to some degree from tenant occupation and agent management, and you don’t have any other comparable investment vehicle I would say renting is your best option, particularly if you wish to keep a foot on the housing ladder.
As David said be aware of the current legislation and ensure your agent is managing their compliance. I would also suggest you insist upon the agent providing full damage and financial statements with detailed photographic evidence where necessary for pursuing DPS / bond holder disputes and assisting in the preparation and submission of court claims for debt and eviction if / when necessary.
My tip to you is when you are nearing getting it back, get all repairs and replacements done b4 you stop renting as you can claim against your tax. You cannot claim exps for repairs or replacement after you have stopped renting
Also…if you have any local good friends that would also keep an eye on the property for you as well as a reliable letting agent…that is a belt and braces situation
Good luck with your move too