Doing OWN Letting and Finding a tenant (not using agent)

[CH1]

My first tenant is leaving (sad) as he was good.

I have always used a Letting agent to find me a tenant but now feel for this property as its local I would like to see if I can find one myself. So I put an ad on Gumtree and have had a few enquiries straight away even though the city is flooded with apartments.

So my question is what tips can you give me regarding prospective tenants?

Should I ask for references? Phone numbers? addresses? -How can you trust the phone number is genuine i.e is a landlord and not a mate??

Do a credit check? If so which company to use and what level of check, cost?

How much deposit should I take? a months? -where is this to be held? (Note -this will be for first deposit after April 2007)

Print as AST off this site?

Make an inventory?

Anything else I should watch out for?

I've had one very keen enquiry from a female who says shes fallen in love with my apt and HAS to have it! and wants it from June 2008 till June 2010 and can pay several months rent in advance and is hoping I can let it out to others now for just 3 months? Should I be weary of this or is this pretty normal...?!

[Matthew]

Hi Mate,

Bit busy to reply properly, but the main thing re AST is to include a line stating that for every day payment is late a 5 pounds charge is incurred (for high rent properties maybe 10 pounds).

Rodent initially advised me to do this, and it really works when you have a difficult tenant..... you can say pay by the end of the week and I will waive the 5 pounds late charge which equates to 150 pounds, or I will be instructing debt collector for full debt including 150 late charges who will charge another 15% on top of that. This is very good motivation to pay quickly!

Good luck!

I use Rentchecks to do referencing for about 20 quid

[CH1]

Thanks Mate, you still here thought you were emigrating...

Yes, will look to add that late rent payment clause into AST.

And I'm sure I will pick up more tips from rodent and others on here as I have in the past.

[Simon Dewsberry]

Hi CH1

To answer in full is a short book !

Matt has covered the ast for you .....I use www.tenantref.co.uk for same sort of money ....dep MUST be protected ...do a search on this forum for loads of advice and discussion ...personally i use www.my deposits.co.uk which costs a few quid but i have got that covered in set up fee that i charge T ...

Deposit .....what i charge very much depends on the result of thr referencing

Std dp =monthly rent + £100 (absolute min for A1 squeaky clean T)

double dep=2x Std for what i consider to be more "risky" individuals

all the way up to

6mths up front + std dep for people i cant ref properly for whatever reason ie.just arrived in UK , insufficient employment history, commission only employment, also have had a few divorcees who had benifit of "sold" joint prop (a stack of cash) but no income ........who have been happy to stump up 12 mths upfront .....i have one single mother who is studying to be a teacher who fell into the above cat and has just paid her 3rd 12mth payment ......normal referencing would have blown her out as she has no cash but a stack of shares !!!

You need to be sensible and take a view on the sit as it unfolds !

Re 2 yr let ....tell her you have a lot of very healthy interest and if she wants it she will have to take it from next month .....that is sign ast and pay rent ......she can move in whenever she likes ..june if desired ..

The Rodent

[CH1]

Hi CH1

To answer in full is a short book !>>>

Matt has covered the ast for you .....I use www.tenantref.co.uk for same sort of money ....dep MUST be 6mths up front + std dep for people i cant ref properly for whatever reason ie.just arrived in UK , insufficient employment history, commission only employment, also have had a few divorcees who had benifit of "sold" joint prop (a stack of cash) but no income ........who have been happy to stump up 12 mths upfront .....i have one single mother who is studying to be a teacher who fell into the above cat and has just paid her 3rd 12mth payment ......normal referencing would have blown her out as she has no cash but a stack of shares !!!

You need to be sensible and take a view on the sit as it unfolds !

Re 2 yr let ....tell her you have a lot of very healthy interest and if she wants it she will have to take it from next month .....that is sign ast and pay rent ......she can move in whenever she likes ..june if desired ..

The Rodent

Well thanks, I knew you'd have loads of tips.

Well the person who loved the place but can only take it from June still loves the place after seeing it in the flesh..so to speak! Unfortunately she can't take it from next month but has asked to be kept posted on when it would become available if it were letout next month for 6 months.

She can pay 6 months rent upfront or even more, as her father is sponsoring her from Canada, so I'd like to keep hold of her for later!

Next question can I let the place out on short term without an AST? i.e let for 3-4 months, perhaps with rent paid in advance for the term.

I'm leaving all options open. It looks like I have a tenant for the future who loves the place and will pay upfront for 6 or even 12 months, but have to find a tenant for now.

I'll try it alone for a week and then maybe resort to a LA who have more coverage on sites like Rightmove etc.

Cheers for your input rodent,

- CH1

[Simon Dewsberry]

You can do an ast for any period you like ....BUT you will not be able to remove them until 6 mths has expired should they wish to stay after the "short term" ...as this is the law ....

But i do a lot of short term lets ...if it suits you and suits them then no problem ! (just be mindful of the above as even the nicest T can turn into your worst nightmare !!...it usually is the nicest that will do it to you ...!!!. )

Personally if the 2Y let is that keen i would take a large deposit and sign the ast then try to get a "filler" for th interm ...many will advise against this because of the above ......the choice is yours .....

The Rodent

[CH1]

Still looking for a Filler for the gap from now till Sept. I'm getting quite a bit of interest but it appears to be for September not now, even though my ad reads available from March.

I've also got an AD on Rightmove -but no enquiries thru' that route yet Gumtree appears to be the most active route so far for me.

I know I should do a credit check, but in practical terms when and what do you tell the tenant before you do this? Should I tell them before they view? after they view if they like it?

and how or what do you actually tell them about the credit check fee? Call it a set-up fee? and how do you take payment for this -in cash first?

And what personal details should I ask them to enable me to do one? Is there a form of some sort I should give them to fill out?

Sorry, I'm asking a lot of practical tips here -I know whats required but just wondering how/when you inform them -as I don't wish to scare tenants away -as I know I lot avoid using agents to avoid such fees and some maynot expect it if they go via the private landlord route.

If its someone whos' lived abroad I may not do one if they provide a large enough deposit.

And regarding this tenant who wants it for 2 years but the earliest she can take it would be late June and would wait till September if I found a 6 month let from someone else now. To secure this tenant whos lived abroad (I did mention credit check to her) but she sounded as if it would be useless as she's lived abroadand said instead she could pay a larger deposit, should I get her to give a deposit and then sign an AST? though at present will not know the exact start date of the AST until I get the 'filler' in now.