Noobie here - with a few noobie questions

[jaffabown]

Hello All,

My Wife and I are just about to leap into the world of Buy-To-Let - initially starting with one or two residential properties. We have gotten a lot of good legal and financial advise, but I have a few Noobie type questions that I hope some kind folks here can answer for me.

The property(s) we would be renting are you typical 1 or 2 bedroom town houses, which we plan to let unfurnished.

We have a team in place in terms of gas men (checks/repairs), decorators etc. We would be doing everything via an agent (initially) - until we have our feet settled - then... who knows.

With this in mind, can anybody tell me:

1) In terms of unfurnished - should we be looking to leave curtains/lampshades in the property?

2) On unfurnished properties, would be be expected to equip white kitchen goods (fridge/freezer, washing machine, etc)?

3) We plan to send decorators in to 'magnolia' all the walls - make it look clean and tidy etc - is this a waste of time?

4) Should we be providing 'tidying' items for the tenants - hoover, lawn mower, etc?

5) when we purchase the properties, there will be existing phone, gas and electric connections in place. Do we cancel these, or leave them in place until we have a tenant and let them take it over?

6) If carpets are in good condition (when we purchase the properties) can they stay, or should be looking to replace with new carpets?

7) In terms of estate agents, are the 'guaranteed' rents good value for money? I would assume the only way they could guarantee rents is by keeping back money in terms of lower (payable to us) rents or higher fees?

8) What are the typical Gotchas to look out for (that the agent wont cover?)

Many thanks in advance.

Jaffa

[Carryon Regardless]

My way is to keep it simple cos I'm stupid.

Furnished, unfurnished content is totally up to you unless you look to register with say a student body, they then stipulate.

If there are curtains, lampshades etc I leave them (if they look presentable) but inform T's I have no responsibility they have choice to use or discard.

I install blinds so I can part close for security when mt.

The white goods you supply is your choice, mine get a cooker and nowt else. Sometimes even that's a nuisance as T's prefer their own, I have no interest in storage so say I just require a comparable cooker at departure.

Fridges and especially washers are a pain. They break, they need attention, LL should PAT test his supplied goods each year. T's own kit tis their own problem.

A freshen up between lets can mean a faster turn around. To be considered here are effect from smokers, smelly carpets after animals and kids, general abuse (wear and tear they call it). Think of deposits and how to allocate responsibilities, reasonably. Check in and check out inventories are a way to address this but far from conclusive, and you pay for the surveys unless you can get away with charging on.

Contract states cleaning, gardening to be T responsibility. I provide nowt again but a bog brush. Too much hassle in maintaining, replacing tracking who nicked it. Then if the hoover is broken I would g'tee the T would see no reason to clean, if they would anyway, as they have an excuse "your fault".

If stuff is serviceable and presentable it's good enough. Watch to see the condition this stuff is left in.

I used to design for a good clean living T, no longer. If they are they will attempt to bring to their standard, the others we can't train by example.

G'teed rents sound nice, but it's not for me. If the property is likely to have serious voids that this would compensate for the A won't want it anyway. Keep the profits it's all too easy to give em away, you'll see with the creative tradesmen.

Suggestions,

Attend some viewings but stay background quite. This can be good experience. To learn you want to listen to the good, the bad, and there are many ugly types.

I have A's on find only but will assess any T prior to sign up as I have to work with them later. A bad un becomes my problem, the A now paid is away to the next.

Look out for ongoing A charges and your responsibilities to them in future.

HB (Housing Benefit) claimants, not all bad, but do present an increased risk by a long way.

Animals and kids cause damage. The owner never smells them or thinks they have fleas and the animals can be worse.

Some prefer a 1 year or even 2 year let, I see no advantage to this. 6 month AST that rolls into a periodic with no renewal is my way.

A 6 month AST tenancy can be closed down more easily if it's a bad one.

Research your A there are many bad uns. Grampa is best to educate you on this area.

I've made a few points but there are a few chapters more.

Experience is the teacher but read much, watch sites like this they're fantastic to see others dilemmas that possibly you might avoid. Go into the history here there are many situations that reoccur.

It's a minefield and the proiffessionals often get it wrong due to the confusions of legislations.

Edit:

One more caution. There is loads of freely given advice on the interweb, don't listen to it these people just think they know what they're talking about

[Grampa]

Hello All,

My Wife and I are just about to leap into the world of Buy-To-Let - initially starting with one or two residential properties. We have gotten a lot of good legal and financial advise, but I have a few Noobie type questions that I hope some kind folks here can answer for me.

The property(s) we would be renting are you typical 1 or 2 bedroom town houses, which we plan to let unfurnished.

We have a team in place in terms of gas men (checks/repairs), decorators etc. We would be doing everything via an agent (initially) - until we have our feet settled - then... who knows.

With this in mind, can anybody tell me:

1) In terms of unfurnished - should we be looking to leave curtains/lampshades in the property?

Your choice, but it can make it more appealing to a person when viewing. Make sure if left they are listed on the inventory.

2) On unfurnished properties, would be be expected to equip white kitchen goods (fridge/freezer, washing machine, etc)?

Your choice again but it is normally expected to leave a cooker. Generally speaking any white goods left it will be down to the L/L to repair when faulty so some L/L choice not to supply any.

3) We plan to send decorators in to 'magnolia' all the walls - make it look clean and tidy etc - is this a waste of time?

In my view it is a good idea. If you have a invoice on headed paper stated the property was decorated prior to the tenancy starting it will make it easier to claim at the end of the tenancy. AS LONG AS A GOOD SIGNED INVENTORY IN PLACE

4) Should we be providing 'tidying' items for the tenants - hoover, lawn mower, etc?

Your choice but if faulty you will be expected to repair/replace.

5) when we purchase the properties, there will be existing phone, gas and electric connections in place. Do we cancel these, or leave them in place until we have a tenant and let them take it over?

As soon as tenancy signed write to utility companies/council and give tenancy start date and tenant details.

6) If carpets are in good condition (when we purchase the properties) can they stay, or should be looking to replace with new carpets?

Depends on the condition. If not bad just get cleaned and make it a condition of the tenancy that they are cleaned by the tenant when they vacate.

7) In terms of estate agents, are the 'guaranteed' rents good value for money? I would assume the only way they could guarantee rents is by keeping back money in terms of lower (payable to us) rents or higher fees?

Depends how important it is that you get the rent on a certain day without fail. If not just make sure you have a good deposit, a guarantor, maybe RGI and the tenant is referenced correctly.

8) What are the typical Gotchas to look out for (that the agent wont cover?)

I will leave that for other to answer.

Many thanks in advance.

Jaffa

[Richlist]

1) In terms of unfurnished - should we be looking to leave curtains/lampshades in the property?

Its really up to you. The more you have & the better the quality the quicker you might let the property and the more 'professional' the tenant. I tend to have all floorcoverings, curtains & blinds, lampshades & light fittings, cooker, fridge, vac cleaner. Remember tenants can make an awfull mess fitting curtains & blinds and without a vac cleaner they have an excuse not to look after carpets.

2) On unfurnished properties, would be be expected to equip white kitchen goods (fridge/freezer, washing machine, etc)?

Usually cooker and fridge is a minimum. Washing machines help let faster......you could try without a wash m/c and if tenant wants one up the rent slightly to cover the cost. Upmarkket pads would have dishwasher/ freezer and other goodies BUT remember that whatever you supply you are responsible for repairs & replacement.

3) We plan to send decorators in to 'magnolia' all the walls - make it look clean and tidy etc - is this a waste of time?

Unless the place is in poor condition then yes......you might struggle to offset the cost for income tax. Better to wait until the first tenancy is over then get decorating done and offset cost against income.

4) Should we be providing 'tidying' items for the tenants - hoover, lawn mower, etc?

Its your choice but given the small relative cost I'd say yes & yes. Tenants have no excuse for not vacuuming carpets or cutting grass.

5) when we purchase the properties, there will be existing phone, gas and electric connections in place. Do we cancel these, or leave them in place until we have a tenant and let them take it over?

The day tenants move in take meter readings for gas, electric & then telephone suppliers with readings and give them new tenant details......thats your responsibility ended. You will receive a final bill up to the date tenants moved in. Tenants will pay from that date. Telephone is nothing to do with the landlord......contact the supplier and tell them you don't require the service any longer. Its the tenants choice to deal with the telephone or not....don't get involved. You should only deal with electric, gas, water, sewerage suppliers and council tax. Make sure you have contacted all of them with tenant details and moving in date.

6) If carpets are in good condition (when we purchase the properties) can they stay, or should be looking to replace with new carpets?

Leave them as they are

7) In terms of estate agents, are the 'guaranteed' rents good value for money? I would assume the only way they could guarantee rents is by keeping back money in terms of lower (payable to us) rents or higher fees?

No idea

8) What are the typical Gotchas to look out for (that the agent wont cover?)

Have you read any books on renting and letting yet ?

Are you going to get a guaranntor, rent guarantee insurance, a professional inventory, who are your target tenants, how have you vetted the agents suitability, how will you decide on suitable tenants, what are your tenant restrictions, are you acccepting pets, smokers, non English speakers, benefits tenants, students, young children, under 21's, unemployed? etc etc

Its a complicated subject.

[snorkerz]

1) In terms of unfurnished - should we be looking to leave curtains/lampshades in the property? Curtains - yes because prospective tenants may not have/be able to afford / cortains to fit your windows. Lampshades - no, they collect dust and are non-essential.

2) On unfurnished properties, would be be expected to equip white kitchen goods (fridge/freezer, washing machine, etc)? Optional - if you supply, you are usually expected to maintain with regards to fair wear and tear.

3) We plan to send decorators in to 'magnolia' all the walls - make it look clean and tidy etc - is this a waste of time? Avoid magnolia - screams 'rental' - but don't go OTT on decorating expense, tenants frequently want to personalise with their own decoration (thats another issue).

4) Should we be providing 'tidying' items for the tenants - hoover, lawn mower, etc? Not usually - it is just extra resposibility

5) when we purchase the properties, there will be existing phone, gas and electric connections in place. Do we cancel these, or leave them in place until we have a tenant and let them take it over? They go in your name until let. WRT telephone, it may be a selling point to have the line, but it isn't essential, and tenant is under no obligation to maintain the service.

6) If carpets are in good condition (when we purchase the properties) can they stay, or should be looking to replace with new carpets? If they are presentable, fine.

7) In terms of estate agents, are the 'guaranteed' rents good value for money? I would assume the only way they could guarantee rents is by keeping back money in terms of lower (payable to us) rents or higher fees? If insurance based - fine. If the agency becomes your tenant and sublets - avoid (you lose so much control)

8) What are the typical Gotchas to look out for (that the agent wont cover?) Get a 'how to be a landlord' book from Amazon - they start at less than a tenner.

If you plan to eventually go solo, check how long you and your tenants will be tied to the agency - it is not uncommon for you to be tied until the tenant leaves.

[caravanj]

You've mentioned all the 'frilly' items such as fridges etc. but you haven't mentioned any safety items such as smoke & CO detectors.

I suggest you familiarise yourself with the recommendations contained in:

BS 5839-6:2004 Fire detection and fire alarm systems for buildings. Code of practice for the design, installation and maintenance of fire detection and fire alarm systems in dwellings.