I couldn't find an applicable thread so thought I'd start one here - I'm lucky enough to be in a position where I'll be buying a home with my girlfriend next year (touch wood).
I own a small property myself with a reasonable amount of equity in it but in an area that rents extremely well due to proximity to Chester and good links in to Liverpool. I'm thinking of keeping this and renting it instead of putting it on the market. Anyone else own property they rent out? Do people have moral objections purely to the concept of being a landlord? I'd personally want to keep the rent fair. Does anyone give their properties to a letting agent?
What are the pitfalls? Would people recommend turning the mortgage to a buy to let to maximise the cash income or keeping it on a consent to let on the full mortgage and only making a very small monthly amount on it? For context I expect that my property should achieve 7% - 8% yield yearly.
Has anyone had any disasters or major successes with this kind of thing?
I rented a house out a few years back. It was the house I previously lived in and when my GF (now wife) and I decided to move in together, we didn't want to live where the house was (Macclesfield) so as the market was on its arse at the time, I kept hold of it for about three years, rented it out and eventually sold it.
My experience was largely good. I didn't use a managed let facility as I felt that the amount that the estate agents wanted was a rip-off.
I listed the place for rent on various platforms (Spareroom and Gumtree from memory) and had plenty of interest. I met my favoured prospective tenant in a pub and had a chat with him first to make my mind up. He was an old geezer from down south who had business in Macclesfield and would only be living in it Monday-Thursday. Great for me really.
You can credit check someone so long as they consent and I did this to be 100% sure. It was about a tenner. All came back fine.
He was fine in the time he lived there - didn't cause me any trouble and I didn't incur any extra costs. Paid his rent on time and I ended up covering my mortgage and insurance which was all I was after really.
He moved out after about a year and I went through the same process with another young couple and again all went well. They complained occasionally about damp on the interior walls but I found out they'd been drying their washing inside without opening the windows and the house was like 200 years old so didn't have great cavity walls/air circulation.
Had one leaky sink issue and got it fixed for about £50.
I allowed them to keep their dog in the house and when they moved out I saw no damage.
They ended up moving out as they had saved to buy so I took the opportunity to sell it and moved on.
I didn't deduct anything from any tenant's deposit.
All in all, it was an OK experience for me. I'd advise taking out comprehensive landlord insurance though for peace of mind in case anything goes wrong (repair wise or needing to get the tenant out!).
I just hope the prices will not increase in the next few months. I'm planning to buy property abroad in the near future. Specialists from Turkey Homes helped me to find property for sale here https://www.turkeyhomes.com/properties/turkey-region/alanya in Istanbul. I think buying property could be a good investment