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quick question on renting property out

desikuri Avatar
5y, 7m agoPosted 5 years, 7 months ago
hye i have a quick question on renting a property out, hope some one can help me, I am looking to a rent a empty property out, I have someone interested in renting it and i have asked them for a months rent in advance but i am confused as to if i should ask them for a bond as well. would someone be able to tell me exactly why i would need a bond and if it would be ok to just take a months rent in advance without bond thanx
desikuri Avatar
5y, 7m agoPosted 5 years, 7 months ago
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1 Like #1
Bond = equivalent to 1 months rent (not actually rent) = your security for any damage to the property at end of the tenancy.

First months rent = just that, the first months rent

So you should be getting 2 x months rent equivalent up front.

I would suggest you need some help, as you need to consider a LOT more than just rent. Such as using a TDS, insurance and ensuring everything is legal. Use an agent.
#3
thanx tussfc
1 Like #4
have you told your mortgage people, we had to pay £100 to our mortgage people to be able to rent ours out, not sure if its the same will all mortgages but might be worth a ring and also to insurances as it could voild them if something happens and they didnt know it was being rented.
#5
Yep - you deffo need permission from your lender if the property is mortgaged.
#6
yeah i know about the mortgage and i would get landlord insurance as i already have a property rented out to a friend with landlord insurance, just was not sure about taking a deposit as the rent is already a good amount every month so was going to take a months rent in advance
#7
desikuri
yeah i know about the mortgage and i would get landlord insurance as i already have a property rented out to a friend with landlord insurance, just was not sure about taking a deposit as the rent is already a good amount every month so was going to take a months rent in advance


Take a months rent in advance anyway. What if it gets towards the end of a tenancy, the tenant withholds the last months rent and you subsequently find out repairs need doing? You're screwed. This is why you should always take the equivalent of a months rent as a security bond and put it in a proper TDS (tenancy deposit scheme). In fact, it is a legal requirement to do so.

Any tenant will expect this to happen.
#8
thanx will agree with a deposit with them as well as the 1 month rent
1 Like #9
Take a deposit of at least six weeks rent, not equivalent to a months rents.
Lodge it with the Deposit Protection Service
1 Like #10
thesaint
Take a deposit of at least six weeks rent, not equivalent to a months rents.
Lodge it with the Deposit Protection Service


Any reason for 6 weeks over 4 weeks? As a tenant I've NEVER paid more than 4 weeks rent as a deposit and to be honest would look elsewhere if I was asked for more than that.
#11
TUSSFC


Any reason for 6 weeks over 4 weeks? As a tenant I've NEVER paid more than 4 weeks rent as a deposit and to be honest would look elsewhere if I was asked for more than that.


To disassociate the misconception that the deposit is anything to do with rent.
It stops a tenant not making the last payment of rent and saying "You've got a months rent that you can use".

This leaves the landlord with no deposit for damages.
#12
thesaint
TUSSFC


Any reason for 6 weeks over 4 weeks? As a tenant I've NEVER paid more than 4 weeks rent as a deposit and to be honest would look elsewhere if I was asked for more than that.


To disassociate the misconception that the deposit is anything to do with rent.
It stops a tenant not making the last payment of rent and saying "You've got a months rent that you can use".

This leaves the landlord with no deposit for damages.


Well, it doesn't really stop that issue, it just leaves the landlord with 2 weeks (which you will say is better than nothing). The industry standard is however the equivalent to a months rent.
#13
All tenancies we have= Section21 served at thestart and two months rent/deposit taken+ work references for every every signee
More for the tenant but still useful:
http://forums.moneysavingexpert.com/showthread.php?t=937335
#14
Thesaint,for, an entire,property one months deposit insecurity is frankly insulting, given decades in rentingour familiy has seen is also unfeasible given what people do to properties.

So long as the deposit is TDS'd you shouldn't complain.
#15
pink-ka
have you told your mortgage people, we had to pay £100 to our mortgage people to be able to rent ours out, not sure if its the same will all mortgages but might be worth a ring and also to insurances as it could voild them if something happens and they didnt know it was being rented.


Yourmortgage must be iformed that you are renting g or you could lose it, also provides protection to tenants should you fall behind and they need prepossesses
AL so landlord insurance.

Edited By: schizoboy on Apr 30, 2011 03:09
#16
schizoboy
Thesaint,for, an entire,property one months deposit insecurity is frankly insulting, given decades in rentingour familiy has seen is also unfeasible given what people do to properties.

So long as the deposit is TDS'd you shouldn't complain.


No idea what you're on about mate.


schizoboy


Yourmortgage must be iformed that you are renting g or you could lose it, also provides protection to tenants should you fall behind and they need prepossesses
AL so landlord insurance.


No one has lost their house for not informing their mortgage company.
It doesn't make any difference for the tenant, the mortgage company will throw them out should the landlord default.

Edited By: thesaint on Apr 30, 2011 09:11
banned#17
thesaint
schizoboy
Thesaint,for, an entire,property one months deposit insecurity is frankly insulting, given decades in rentingour familiy has seen is also unfeasible given what people do to properties.

So long as the deposit is TDS'd you shouldn't complain.


No idea what you're on about mate.


schizoboy
pink-ka
have you told your mortgage people, we had to pay £100 to our mortgage people to be able to rent ours out, not sure if its the same will all mortgages but might be worth a ring and also to insurances as it could voild them if something happens and they didnt know it was being rented.


Yourmortgage must be iformed that you are renting g or you could lose it, also provides protection to tenants should you fall behind and they need prepossesses
AL so landlord insurance.


No one has lost their house for not informing their mortgage company.
It doesn't make any difference for the tenant, the mortgage company will throw them out should the landlord default.


He posted at 3am. I'm thinking it was his alter ego, "drunkoboy".
#18
schizoboy


Yourmortgage must be iformed that you are renting g or you could lose it, also provides protection to tenants should you fall behind and they need prepossesses
AL so landlord insurance.




thats what i would of said. its best to get a good lawyer and stay clear of any of this. you would also need a LDAC
#19
as said , a months advance rent and a bond , but I would also make it a 6 montly agreement to start with . If all goes well then you can make it a 12 month agreement .
As a decorator , I've been asked on numerous ocassions to put right a house/flat after so called decent tennants have trashed the property and done a runner .

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