Landlord questions

[onlinetravelservices]

Hi

We own a 2nd property and are currently using a property management agency but are less than impressed with the service received. We are now thinking of taking care of this ourselves, as we are basically doing this ourselves now!
So, before we go ahead I have a few questions:
1) What paperwork do we need to transfer management to ourselves?
2) How do we set up the direct payment monthly to our bank>
3) What else would we need to transfer this over?

Many thanks in advance

 

[PewPew]

One thing that I'll say is, you should check what's being done on the building (e.g. on-going work or unpaid invoices), to make sure you don't pick up any massive bills after the transfer...

 

[sellickbhoy]

get your landlords buildings (and contents if furnished) insurance sorted out (you should have that anyway)

have a chat with an accountant - as you'll be liable for tax on the profit, but even if there is no profit, you'll need to do a tax return

get a copy of the existing lease agreement - and copy it with YOUR name instead of the letting agency, or get a lawyer to draw up a lease agreement or buy a ready made one and use that

you'll need to register with one of the deposit protection schemes if you are going to hold the deposit. http://www.direct.gov.uk/en/TenancyDeposit/DG_066380 for info

councils require landlords to be registered as landlords with them as well - check with your council

In my experience most letting agents aren't worth the hassle, certainly not if you are in the same location as the property and can manage it yourself. But there are some good ones

you could try to find a new letting agent and get them to take it on for you - try find one that comes highly recommended - of course!!

 

[onlinetravelservices]

Hi folks

Theres no ongoing work as we have handled all works today - hence the move away from the agents we are with at the moment.

We currently have all insurances in place so thats one thing ticked off!

What about setting up direct debits to ensure payment to our bank account?

 

[sellickbhoy]

no need to set up a direct debit - jsut ask the tenant to set up a standing order. give them your bank account details and have them set it up

 

[David Griffiths]

Check the agreement that you have with the management company.

I've seen agreements that provide for a severance fee of 6 months charges if you dispense with their services other than on a change of tenant. I'm sure that you wouldn't want to pay them that for doing nothing!

The other thing to be aware of is if that you take over management it will be you that gets the telephone call on a cold wet night because there is a problem with the central heating, leak in the roof or whatever. That doesn't mean that you have to go and fix it yourself, but you'll need to know a man who can.

 

[Adam T]

Some good advice so far, but please also consider the following :

• Firstly, if you are intending to rent to the current tenants check the agreement you signed with the leasing company. They may have a clause where it will cost you some sort of fee for you doing this.
• The tenancy deposit scheme is also an absolute must, ensure it is a regulated governement backed scheme.
• You will need to get an AST contract drawn up for you and any tenant. They are readily available from the internet but do get your solicitor to sense check it.
• As stated just get the tenant to do a standing order for the rent, this will obviously take 4 working days from when sent though.
• Ensure you get an inventory documented and signed, ideally from an impartial source so if you need to retain any deposit you have justification. This is where many private landlords come a cropper.
• If you are taking on a new tenant ensure you get the credit checking done as a minimum, should cost under £50 all in !

Overall, good luck and imo you have made the right call, shout if you need any further assistance.

 

[onlinetravelservices]

Thanks All,

I will let you know how we get on!

 

[evo1200]

First thing is to read your contract with the agent to make sure there are no penaties or time periods to get out and go your own way.

Regarding the deposit it only needs to be protected in a schemce if the last contract signed was later than april 2007 and it is also a ASSURED SHORTHOLD TENANCY (AST). If it does make sure the tenant has the precribed info as well (can be printed off the web site of whatever scheme used). If either or both are not done you could be liable for a fine a x3 of any deposit taken. (even if the agent didnt do it, it could come back to you)

You dont need to do another contract unless there is a change of tenants or you want a new contract. As long as you comply with section48 of the landlord and tenant act 1987 which means the tenant has been informed in writing who the landlord is and a address in england and wales where the tenant can serve notices on the L/L. If the present ast has the correct details already you dont need to do anything. (some agents put their own address on contracts).

If the tenant doesnt have the correct name and address they can legally withold the rent until it is given.

I have never heard of L/L having to be registed with the local council mine dont. Check with yours.

If the property is in scotland a lot of the above may not apply.

 

[3cellhosting]

Hi,

I can reccommend an information site where you can get all sorts of help and advice. They provide some great information packs for Landlords; including tenancy agreements, possession and rent arrears packs, plus lots more.

They have a regular journal plus a Letting Factsheets Handbook covering almost every aspect of being a landlord, private or letting agent.

Their site is http://www.letlink.co.uk

Hope this helps

David

 

[sellickbhoy]

I have never heard of L/L having to be registed with the local council mine dont. Check with yours.

If the property is in scotland a lot of the above may not apply.

https://www.landlordregistrationscotland.gov.uk/Pages/Process.aspx?Command=ShowHomePage

for properties in Scotland, you do need to register with the councils

not sure if there is something similar in Englandshire - but it's a way for councils to get money, so i'd be surpised if there wasn't

 

[amanda1112]

Hi do you mind if I ask why you are not happy with your agent? Which part of the country are you in? I used to work for a property management agency and currently setting up my own business (see my posts). Normally an agent will charge you if you terminate the contract early. I would check the terms. You can download a standing order mandate from the net for free to give to your tenants. Also I would check with the agents if there are any outstanding invoices for any works done to your property as you may end up with an invoice yourself. Contrary to popular belief not all agents are rubbish. In their defence they do work hard but cant always please everyone at the same time.