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Is there any money to be made in it do you think? I want to buy a new place and was thinking of hanging onto my current flat for rental income. Service charge would wipe out a month's rent, I extended the lease already to 999 years a few years back and I own part of freehold.
If I got a company to manage it, any idea what they typically take off the top and are they responsible if some deadshit trashes my place or do I still need to cover all that with some kind of rental insurance?
The other option is to just sell it and put it towards a newer place but there's hassle in that too.
hippy-
If I got a company to manage it, any idea what they typically take off the top and are they responsible if some deadshit trashes my place or do I still need to cover all that with some kind of rental insurance?
My guess is that a management company would charge you 5 / 10 / 15% for doing fuck all, and you'd end up having to pay more to get anything fixed whatever happened.
If someone trashed your place, you will have to pay for it yourself, unless you're insured against it - A management agent will not insure you themselves, but will happily charge a premium on top of the insurance they get for you.
Openrent has a lot of useful add-ons for self-managers - insurance, for example (contingent on having them do the background checks etc...), rent collection (£10 a month, iirc).
If you own the place already, it could be worth it. I'd never actually buy a place to rent it out - there is fuck all money in that, unless you're prepared to be a slumlord.
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If you already own and have lived in the place, it's different story I think. You know it. Owning a share of freehold will reduce risks from that area. Most agents are terrible. The landlords in my block use agents but end up getting involved with many things or risk losing their tenants. Leaks, repairs, the lot. If you're prepared to be on the end of a phone and can do the paperwork, I would manage it yourself.
NotThamesWater
Sharkstar
We have a couple of BTL investors in the block I’m in. It has been an eye-opener for them. You need to pay close attention to stuff like service charges, sinking funds, lease extension requirements, renovation costs for flat and freehold etc. I would only let a place I’d owned and lived in and knew really well. Hassle.