Dawn2002 Posted August 26, 2014 Share Posted August 26, 2014 Hi there The lease is due for renewal in our Uk Rental property, the tenant wants to stay and has been very good so far, with paying the rent and looking after the property. We are still in contact with our old neighbours in the UK and they are also giving us good reports. Currently we pay for management of the property, but we have been disappointed with the service received. As has the tenant. We have spoken to the tenant and he's suggested we cut the agent and draw up a lease, using a solicitor obviously, whereby he can arrange repairs when needed and get the invoices sent on. He currently rents his house in Ireland and has just done this with his tenant. Obviously not so much of a distance issue. We have family we could get to inspect the property regularly. The house is only 5 yrs old and we have only had minor things needing to he done so far. Just wondered if anyone has gone down this route, or any thoughts. My OH is keen due to the extra money, but I'm a bit unsure. Link to comment Share on other sites More sharing options...
noworriesmate Posted August 26, 2014 Share Posted August 26, 2014 Hi there The lease is due for renewal in our Uk Rental property, the tenant wants to stay and has been very good so far, with paying the rent and looking after the property. We are still in contact with our old neighbours in the UK and they are also giving us good reports. Currently we pay for management of the property, but we have been disappointed with the service received. As has the tenant. We have spoken to the tenant and he's suggested we cut the agent and draw up a lease, using a solicitor obviously, whereby he can arrange repairs when needed and get the invoices sent on. He currently rents his house in Ireland and has just done this with his tenant. Obviously not so much of a distance issue. We have family we could get to inspect the property regularly. The house is only 5 yrs old and we have only had minor things needing to he done so far. Just wondered if anyone has gone down this route, or any thoughts. My OH is keen due to the extra money, but I'm a bit unsure. Firstly - check the agreement you have with your agent. In our one the landlord would have to pay us a few months fees to cut us out. Secondly - it's great while everything is working OK, but what if the tenant loses their job or there is an insurance claim or another issue arises. Thirdly - the laws are changing rapidly regarding property management, how will you keep up to date with these? There are some good insurance policies which will cover you for some of this but my suggestion would be that if you are unhappy with your agent then change agents - don't do without one. Also make sure they are ARLA registered - this will give you a level of assurance and they will be accountable should things go wrong. NWM Link to comment Share on other sites More sharing options...
Alaska Posted August 26, 2014 Share Posted August 26, 2014 I would also look at changing agents. I wouldn't have wanted to deal with our rentals without an agent. We ended up having some big issues (with the house not the tenant) and the time difference etc would've made it difficult. Legally, it probably isn't as simple as having family to inspect the property regularly. You would be best to adhere to the notice periods etc just in case things go sour down the line. I also wouldn't be happy taking a tenant's word on the repairs and invoices. I am a bit puzzled about the tenant's motivation in suggesting this to be honest - what's in it for them? To be honest, I wouldn't do it. I would get a good agent instead. Link to comment Share on other sites More sharing options...
Dawn2002 Posted August 26, 2014 Author Share Posted August 26, 2014 Thanks for your replies NWM, these were all the issues I was concerned with. I hadn't even considered your 3rd point, so thanks for that. Alaska, I assume that he's only suggested it as he has done the same with his property, also I agree that I to would query if repairs could have done for less if we left it up to them. The only plus point is that we would have more money coming in. We are currently with a large national agent whenever you call you go to a call centre and we've had to call over four times just to get then to speak to the tenant about the lease. We called a smaller local agent, who owns their business last week, he was very helpful and made some sensible suggestions regarding keeping the tenant in for when we do come to sell, he was also more willing to discuss fees etc. We've had another chat and were going to look at changing the agent, I was leaning towards this but your replies have convinced me it's the best way to go. Thanks again Link to comment Share on other sites More sharing options...
ramot Posted August 26, 2014 Share Posted August 26, 2014 I echo the advice given. We have rented property from overseas for 15+ years, and if you are in it for the long term, then the only sensible thing is to have your property managed for you. We have good agents ARLA registered, they inspect 3 monthly, it is unrealistic to expect friends or family to help long term, and what will happen when your tenants leave. You would probably need to re-appoint an agent again. on our experience it has been money well spent to have agents to sort every thing out, it saves a lot of hassle, and they have access to workmen if anything needs fixing quickly. Link to comment Share on other sites More sharing options...
Dawn2002 Posted August 26, 2014 Author Share Posted August 26, 2014 I echo the advice given. We have rented property from overseas for 15+ years, and if you are in it for the long term, then the only sensible thing is to have your property managed for you. We have good agents ARLA registered, they inspect 3 monthly, it is unrealistic to expect friends or family to help long term, and what will happen when your tenants leave. You would probably need to re-appoint an agent again.on our experience it has been money well spent to have agents to sort every thing out, it saves a lot of hassle, and they have access to workmen if anything needs fixing quickly. Yes I think you're right, I don't think the monetary gain is worth the hassle. we have called the current agent tonight and advised them we will no longer be using them. It seems that once the current lease expires the management agreement ceases, even if the same tenant renews their lease. We paid a pretty hefty upfront fee from the first months rent. We're not really in it for the long term, we only rented the property as all the offers we were getting last year were well below the asking price and would have wiped out almost our original deposit. Obviously the market has moved on since then, but from looking at the time properties in our development and price range are hanging about, it's obviously not filtered through yet. One question, I am assuming we'll have to complete a new NRL1 form, as the original mentions the current agent. Would that be correct, do you know ? Thanks again Link to comment Share on other sites More sharing options...
noworriesmate Posted August 26, 2014 Share Posted August 26, 2014 One question, I am assuming we'll have to complete a new NRL1 form, as the original mentions the current agent. Would that be correct, do you know ? Thanks again I am not sure you need to fill out a new form but you do need to notify HMRC of the change NWM Link to comment Share on other sites More sharing options...
ramot Posted August 26, 2014 Share Posted August 26, 2014 Yes I think you're right, I don't think the monetary gain is worth the hassle. we have called the current agent tonight and advised them we will no longer be using them. It seems that once the current lease expires the management agreement ceases, even if the same tenant renews their lease. We paid a pretty hefty upfront fee from the first months rent. We're not really in it for the long term, we only rented the property as all the offers we were getting last year were well below the asking price and would have wiped out almost our original deposit. Obviously the market has moved on since then, but from looking at the time properties in our development and price range are hanging about, it's obviously not filtered through yet. One question, I am assuming we'll have to complete a new NRL1 form, as the original mentions the current agent. Would that be correct, do you know ? Thanks again i'm sorry I don't know, we have never changed our agents. Link to comment Share on other sites More sharing options...
Dawn2002 Posted August 27, 2014 Author Share Posted August 27, 2014 No problem, I'm sure it'll be pretty easy to find out. Thanks for your advice. Link to comment Share on other sites More sharing options...
rammygirl Posted August 27, 2014 Share Posted August 27, 2014 Just a thought do consider the new rules regarding capital gains tax if you are planning on renting for longer. Link to comment Share on other sites More sharing options...
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