Renting out a flat,need advice.

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Saltex

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Ok so my dad and I are looking into buying a flat for investment purposes and then for it to be used to rent out, this will be our 1st time doing something like this, so we are very nervous in going ahead with this as there isn't much advice out there, so maybe someone here can offer some good advice on all the do and don't,how to protect ourselves and just any sort of advice will be appreciated. Thanks.
 
Are you planning to rent out using a agency or by your own?
Saltex said:
Ok so my dad and I are looking into buying a flat for investment purposes and then for it to be used to rent out, this will be our 1st time doing something like this, so we are very nervous in going ahead with this as there isn't much advice out there, so maybe someone here can offer some good advice on all the do and don't,how to protect ourselves and just any sort of advice will be appreciated. Thanks.
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On our own as my dad has alot of free time, he will manage to attend to alot of things.
 
Just make sure that the place is firstly in top condition from the electrical and plumbing side and also that you have decent insurance in case of mishaps with the geyser etc.

Then I would make sure that the electricity is pre-paid meter

Then make sure you have a contract that is legally sound to protect your investment / venture.

Try and get as big a deposit as possible - up to the equivalent of two months' rent, failing that at least one month.

For all applicants, make sure you do a proper credit / ITC check.

If you let someone else handle the admin for you, you will get less out monthly but have a lot less hassles. Some agencies can give you a rent guarantee that you will receive your rent.
 
If you are doing it on your own be sure to do ITC checks on tenants
 
Also make sure you have at least a few months bond money saved in case you are without a tenant or one doesn't pay, unpaying tenants are a bytch to get out...I know people who had tenants who didn't pay for 6 months before they were evicted by the high court and sheriff...they didn't recover from it. Good luck.
 
I seem to recall fairly recent developments that could have tax implications with regard to revenue from rental properties. Maybe not as lucrative as it used to be.
 
Saltex said:
Ok so my dad and I are looking into buying a flat for investment purposes and then for it to be used to rent out, this will be our 1st time doing something like this, so we are very nervous in going ahead with this as there isn't much advice out there, so maybe someone here can offer some good advice on all the do and don't,how to protect ourselves and just any sort of advice will be appreciated. Thanks.
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Making fking sure you do not have a meter for power. At least if people do not pay rent you can cut their lights but if they have pre paid meter they can live there for months and there isn't a thing you can do about. Pre paid meters are a sure fire way to ensure tenants can survive even if they have not paid rent for 4 months and to get them evicted is not very easy.
 
Do it yourself.

But follow these guidelines:

1. ITC check
2. Atleast 1-2months deposit.
3.Have a sound contract, and make sure a lawyer checks it for you.
4. Find the right tenant. Treat it as an interview. Go with your gut feeling.
5. take before and after photos of the flat to ensure the tenant leaves it the way it was when he/she/it moved in.
6.Pre-paid electricity and a gas geyser is probably the way to go.
7. Get references from the tenants employer,etc.
8. Treat the tenant with respect. You cant just have a set of keys and barge in. Ask the tenant to inform you of any problems,eg, leaking toilet,electrical etc..

Follow these basic rules and you should be fine. I havent had issues thus far by following them.
 
killadoob said:
Making fking sure you do not have a meter for power. At least if people do not pay rent you can cut their lights but if they have pre paid meter they can live there for months and there isn't a thing you can do about. Pre paid meters are a sure fire way to ensure tenants can survive even if they have not paid rent for 4 months and to get them evicted is not very easy.
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I dissagree. Cutting the power is the worst thing you can do! Ive heard of some nightmare stories where people have cut the power off, and the tenant started to make holes in the wall with a hammer, burn cupboards, etc...
 
I can't remember what they're called, but there's a rental agency who guarantees you get your rent if the tenant pays or not because they make it their business to make sure the tenant pays.

That's one big thing I've learned, tenant will (or won't pay) and/or not on time and it ****s with your own finances so much that you can't really do much else on your own.
 
killadoob said:
Making fking sure you do not have a meter for power. At least if people do not pay rent you can cut their lights but if they have pre paid meter they can live there for months and there isn't a thing you can do about. Pre paid meters are a sure fire way to ensure tenants can survive even if they have not paid rent for 4 months and to get them evicted is not very easy.
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Its illegal to cut the power. You will also sit with a rising bill if it isnt in their name.
 
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