Thread: Keep house or sell?

That has helped. I still need to get last minute figures from my IFA but I think I am going to put the house on a rolling tenancy from Feb and put it on the market.

I go back shortly for a long weekend so I think I will nip into the agency and have a discussion with them whilst back.

Got the last minute figures. I am seeing my Letting Agent on Monday and I am going to put the house on the market as soon as I can.

Just seen this.

What exactly are the agents doing for 23%? This seems terribly high for any service.

It's a guaranteed income sceme GS.

Any advice would hinge on whether you are able to get out of the contract with the agents and I suspect that you can't, certainly not retaining the current tenants but have a look and let me know.

I have always advised strongly against signing up to these schemes (although I can understand the peace of mind if you're overseas) as I view them as a bit of a con. Most of the schemes will guarantee a rental income of £X which is always below market rate, the agents will then let the property out at the market rate, pocket the difference and charge you a bloody high % for the privilege. The chances of a tenant not paying rent is small and if as a LL you are not greedy/use a good agent then there will never be a void period in a strong rental market and the rental market is going to remain strong for a few years to come.

I read the contract yesterday actually GS. The tenancy is up in October for the tenants (how confusing does this get?) but February for me. Therefore I think I can start to market the property now with the LA without incurring any charge other than the rip-off 1.5% plus VAT because they will put the tenants on a rolling contract. Plus if the house is sold within that time the LA will just stop my monthly repayments.

To be fair I fly back tomorrow for 4 days so I am going to see the LA and the house Monday to see what can be done.

You seem to have made your mind up already but for what it's worth here's my probably unwanted twopence

Professional head on:-

I wouldn't recommend selling in this market unless you absolutely need to.

I would advise that the tenants remain in the property on the rolling agreement, for you to serve the tenants notice (2 months?) in December and for you to part company with the tenants and the letting agent in February and to start again with a good agent paying between 12 - 15% for full management. The property needs to work for you not for your lettings agent which is what it's doing at the moment.

However, if you have sell in order to buy sooner rather than later then that's what you have to do and the market conditions are irrelevant.

I paid 20% to the agent while my flat was being let, didn't really know any different to be honest but the fact that the letting agents are also the management company and are all housed in the same building as my flat just seemed to make everything a lot easier than trying to sort out my own tenant or access through this agent anyway.

It is currently on the sales market but as I have heard ABSOLUTELY nothing from the sales agent it will more than likely be going on the rental market again, although this time it won't be furnished as dizzy has cleared me out - not sure how much of a difference in income this will have but hey at least its one less thing for me to worry about.

Originally Posted by gentlesoul

You seem to have made your mind up already but for what it's worth here's my probably unwanted twopence

Professional head on:-

I wouldn't recommend selling in this market unless you absolutely need to.

I would advise that the tenants remain in the property on the rolling agreement, for you to serve the tenants notice (2 months?) in December and for you to part company with the tenants and the letting agent in February and to start again with a good agent paying between 12 - 15% for full management. The property needs to work for you not for your lettings agent which is what it's doing at the moment.

However, if you have sell in order to buy sooner rather than later then that's what you have to do and the market conditions are irrelevant.

Thanks GS. I do see your point, but we need to sell before we can buy our family home. Mstr Gonzo starts senior school next year, so we have decided to go unaccompanied as soon as possible after we are posted back to UK.

I know the housing market is rubbish at the moment and it is very stagnant but I don't have a choice to be honest.