Updating post from Reddit.
Hello,
(I've posted here a few months ago too so thanks for everyone's information, very helpful)
I'm in the process of the last few months researching and renovating my studio (1 bed) flat to let. I'd obtain a RentSmart Wales license, use OpenRent and will use the AST & inventory forms off the NRLA. Everything is in check, ready to go, certificates etc. What appeals to me is the 'peace of mind' you get with full-management (which even then I've read isn't always guaranteed) but what I dislike of course is all the fees and that monthly 10%. Also I have the opinion that agencies have that trusted 'branded' look to them - people feel safe going there? Mainly, I want to do it privately because economically, it's much better but more work is to be done, but really?
I'd make an inventory, legally data protect & get landlord insurance. I have a good maintenance-man and an electrician who lives down the street. I'd make a separate bank account for the self-assessment. Will find a good govt. backed deposit scheme. I won't use OpenRent's holding-deposit and will ask for half or month's rent deposit.
I suppose I just need some re-assurance it's actually possible and I can find a nice tenant and not get screwed over; suppose it all comes down to proper vetting. In my own experience renting, I would too ask for a guarantor and bank statements past 2 months (proof of income and/or previous rent payment). UK passport is a must?
I'm a bit of a stress-head but I really don't think it's that much extra hassle, only I think it is?
Thank you.
TLDR: Really on the fence whether I should rent privately or go through an agency?
You can Vet the tenants properly and save the 10% imo. Almost a months rent every year, so longer term tenants are ideal.
Reference them properly, credit checks. Do you know what the common scams are?
It’s hard to evict so a mistake will cost you dearly. Most insurance doesn’t cover what you’d expect and you need addons. Legal cover can be worth it.
Put the price increase in the fixed term contract, I suggest CPI.
Pay for an inventory once and then consider doing your own - they’re thorough and you’d miss what they spot which includes compliance issues.
How handy are you? You’ll need to have a plumber on hand at the very least.
Tenancies are highly regulated so fully understand the responsibilities before committing, any contracts started now will likely inherit new rights when the renters bill passes.
An agency can help market, vet and manage. But will charge you for everything and you still have to fix the issue at the end of the day.
To obtain an RSW licence you will need to first become registered and book one of their courses, then complete the licence application which can take a couple of months. Are you sure you know what you’re doing? The legislation in Wales is very different, where tenants are now called ‘contract holders’ and properties are dwellings. You say you ‘will use the AST & inventory forms off the NRLA’. Sounds ok except AST’s don’t exist in Wales.
I would at least employ an agent to do the let and all the initial paperwork.
Just never go for an agent. They're thick.