So, You Want to Rent Your House Out?
You’ve wisely taken my advice and decided to go on a sabbatical, haven’t you?… Yes? I thought so – great choice! But, what about your house? That’s the next hurdle.
If you’re strange enough to have read any of my other blogs, you’ll know that Mary-Ann and I decided to rent ours out: a three-bedroom, 1970s end-of-terrace in the Cotswolds.
We assumed a simple, tidy house in a nice area would be easy enough to let out short-term. So, we weren’t too concerned by the painful lack of helpful information to guide us through the process. There’s plenty of jargon and overly complicated advice around, but no real basics, or ‘How-to-rent for idiots’ guides! Really, all we wanted was some extra spending money for our trip and someone to take care of the house while we relax on a beach – you know, making sure the pipes don’t freeze over the winter months, and flagging up anything that breaks!
We got there eventually, but it was touch and go at times, with a truly bountiful supply of incompetence from all parties involved. So, I’m here to share our experience and hopefully help anyone else who might find themselves in a similar situation.
Preparing Your House for Rent: ‘The Groundwork’
It might seem obvious but stick with me… First and foremost, you really need to make sure your house is in decent shape and looks appealing! I know what you’re thinking, “Duhh, c’mon baldie, we’re not stupid!” But hey, I’m just starting from square one… I’m nothing if not thorough! But it is worth thinking about if you are still in the market, it may help deter you from a ‘doer-upper’!
First impressions matter
People eat with their eyes first, or so the TV chefs say, and my incredibly astute senses lead me to think that the same can be applied to prospective tenants! What they see initially should be as appealing as a perfectly cooked, juicy steak – with gleaming kitchen surfaces, sparkling porcelain, and fresh paint on the walls. This might mean some DIY… and if you’re saving for a sabbatical, it definitely means DIY! Just make sure to get your house looking as ‘tasty’ as possible.
Compliance is key
Besides looking good, your house needs to work properly – by law, in fact. You’ll need:
1. An electrical safety certificate.
2. A gas safety certificate.
3. A Legionnaires’ disease risk assessment (if you’ve got a water tank in the loft).
4. A functional fire alarm system hardwired to the mains.
5. A carbon monoxide alarm near the boiler.
It might sound like a lot, but it’s not as bad as it seems. The certifications themselves should only set you back a few hundred pounds, plus any annoying repairs… Sadly, we had to upgrade our fuse board and install a new fire alarm system – ouch!
Duration matters more than you think
A less obvious, but probably more fundamental point, is considering how long you’ll be galivanting around the world for! Finding a six-month tenant isn’t as easy as you’d expect. Many people want a minimum of nine months, with some preferring closer to a year. This discovery was a bit of a kick in the teeth for us, but we learned a few things:
1. Plan ahead – If you’re yet to buy a house but know you want to rent it out in the future, consider properties near universities, colleges, or industries. People on short-term contracts or courses make ideal tenants for a sabbatical.
2. Backup accommodation – Make sure you have a contingency plan for housing if timings don’t quite line up. Friends or family might come in handy here, they were crucial in our case! Luckily, my in-laws live relatively nearby and are well located for our jobs, so we can crash with them during any tenant overlap. Can’t wait for that…
Estate agents: Things to Watch Out For
Honestly, I can’t stand them – a bunch of useless apes in suits… I could actually leave this section at that, it’s all that needs to be said! But don’t fret, I’ll give you a few tips to help manage their smooth-brained monkey business.
When should you involve them?
First of all, when should you get the estate agents involved? Well, while the simple answer might seem like “the earlier, the better,” but it’s not as simple as that. We started talking to them a full sixteen weeks before our planned departure, but they told us we didn’t need to list the house on the market until eight weeks before we left. Then, literally with their next breath, they tried to convince us to sign a twelve-week ‘exclusive marketing’ deal… Estate-agent math, right? Pffft!
I’m embarrassed to say that they were successful. They played us like a fiddle, and we signed the form that meant they were the only ones allowed to market the property for twelve weeks… I despair…
In hindsight, sixteen weeks was way too early, and even twelve weeks might have been. Most people aren’t prepared enough to look for short-term rentals that far in advance. You’ll find that 80% or more of your interest will come within the four-to-five-week window before your trip. Above all, just imagine having to deal with estate agents for sixteen weeks… Don’t do it to yourself!
They’re very wily…
Secondly, remember that estate agents are, at their core, salespeople – this can be both a blessing and a curse. On the bright side, they’ll work pretty hard to flog your property at any cost. But, on the flip side, before you even get the house on the market, they’ll spend a lot of time overselling their services to you. For example, they might butter you up with an inflated valuation of your home, insisting that “it’s the perfect time to be on the market”, or claiming that “the other homes in your area aren’t as well renovated and have overlooked gardens.”
Even if the dreaded overlooked gardens are rife in your area, IGNORE their deception and do your own research about the local market. We wasted weeks with our property listed at the wrong price, just because we got greedy and let them convince us with their sales nonsense!
Getting them on the phone – good luck!
Lastly, it may just be our experiences, but estate agents can be frustratingly hard to reach. In fact, I firmly believe that when you actually manage to get them on the phone, by default they’re trained to say, “so-and-so isn’t at their desk right now, but I’ll get someone to call you back.” Then of course, it’s a roll of the dice whether they actually do!
So, I advise that you choose a local agent you can visit in person – ideally, one you can get to in just a few minutes. I mean, you don’t want to calm down too much after your fifteenth unanswered call, do you? You want the fresh rage seeping from your pours as you kick down their door and demand to see the manager… Just kidding, play nice everyone (or try to).
Sorry for the rant – I just had to get that off my chest!
To manage or not to manage?
Once you get some semblance of sense out of your agent, they’ll ask if you want the property to be ‘fully managed’ or not. Basically, this means whether the tenant deals with them or you. For instance, if the tenant reports a leaky tap and you’ve opted for fully managed, your agent will handle it on your behalf. You can also pre-agree a maximum spend the agent can authorise before contacting you. It’s quite handy actually – you might allow them to handle repairs under £50, but anything major like a boiler repair would need your approval.
Alternatively, you can choose not to go fully managed, which means the agent only processes rent payments. This is cheaper, but can you imagine trying to organise a plumber from a beach hut in Vietnam? We went fully managed, and unless you’ve got someone back home willing to take care of everything, I’d recommend you do the same.
Should you furnish it?
Did you know a standard storage unit in the Cotswolds can cost up to one hundred spondoolies per week?… We didn’t!
This nasty little surprise could easily wipe out any extra spending money you make from renting the house. Granted, you more intelligent folk might be able to find a less gut-wrenchingly expensive storage place than we could. But, at the least, you do need to be aware of this hidden cost. Originally, we didn’t mind whether tenants wanted our house furnished or unfurnished… However, shortly after seeing the price of storage, we quickly shifted to furnished only!
We’re lucky enough to have a single garage detached from the house, so we could be flexible with furnishings by storing anything the tenant didn’t want there. It’s also handy for keeping smaller items like crockery, books, clothes, and electronics. Another common option for that is to use the attic and padlock the hatch.
Bills, bills, and more bills!
It’s easy to overlook things like council tax, utilities, and internet! We almost did, but thankfully, our estate agents prompted us to come up with a plan – one of the few useful things they did.
The issue is, if you’re renting for less than a year, tenants won’t be able to sign up for internet, since providers require twelve-month contracts. It’s can be similar story with some gas and electricity providers. Plus, switching names and bank details on the council tax forms is hardly worth the hassle for a short-term let. Just be aware that single occupants get a discounted council tax bill, this can be difficult to tackle if you are not a single occupant yourself. Your estate agent should be able to help you in this scenario.
To get around all this fun stuff, you can specify how to handle these costs in the contract. This could mean your tenants pay you monthly via direct debit, or in lump sums throughout the tenancy. It sounds more complicated than it actually is, and it’s a great example of something your agent can handle on your behalf (they may need their hand holding though).
Overall, estate agents are a bit of a necessary evil. While they can be a pain to deal with, they do half-attempt to guide you through the general process, which is helpful for first timers (like us). I have also heard of people renting out properties privately, but without personal experience, I can’t say how much easier or harder that is… So, for noobs, I’d say an agent is probably worth it.
It’s Risky Business: Some More Stuff to Think About (Sorry!)
Unfortunately, even after having battled through the Armageddon that is letting out your house, your mind may still be filled with thoughts and worries. If you Google ‘landlord problems,’ you’ll need a stiff drink afterwards if you want to get sleep that night…
Right, that’s all for now.
I’ve had some feedback that some of my blogs are a bit lengthy, so I’m breaking this one into two chunks. In the next half, I’ll cover the remaining things I can think of, including some of the risks to be wary of.
Don’t worry though, it’s not too bad! Just know that taking a sabbatical and renting out your house short-term does come with its share of risks. Spoiler alert: Estate agents aren’t the only source of stress, don’t forget about your tenants!
Stay bald folks.
Toodles,
Jack
