Bring An Empty House Back to Life – Tips for Homes That Are In Good Condition.

Yesterday we spoke about how empty houses deteriorate rapidly and become targets for vandalism. We noted that putting your vacant property back into circulation would remedy this.  Having covered empty property that was in need of a few fixer-uppers, today we’ll move on to how to get some usage (and monetary value) out of a house that’s ready to be lived in.

Letting Through Local Council

If your house is in move-in condition, you might want to let the property through your local council “under a private sector leasing scheme (availability of these schemes varies from area to area),” per the instructive independent charity Homes From Empty Homes.

If that’s what you decide to do, you’ll grant the council a lease on your property for, say, a period of five years. In turn, the council will act as a sort of managing agent.

“Councils usually charge one month’s rent a year for managing the tenancy,” notes EH, but this can vary so check with your local council.

(This, in and of itself, will save you quite a lot of money. Although salaries vary greatly, depending on area, managing or estate agents can bring in £55,000 plus OTE.) Source: Prospects – the UK’s Official Graduate Careers Website

What does a managing agent do?  She or he does the following:

  • Screens for a suitable tenant;
  • Acts as a go-between, between you and the tenant where the tenant has queries or needs repairs;
  • Arranges for these very repairs (inside and outside the property);
  • Collects rent; and
  • Handles all administrative and legal issues arising out of the tenancy.

What would your responsibilities be, as a landlord, throughout the time frame of this leasing scheme?  You’d have to:

  • Take care of all internal and external repairs to the structure;
  • Handle all maintenance on the property; and
  • Pay buildings insurance.

 Letting Through a Housing Association

If you choose to let through a housing association, the process is similar to the one described above except that the housing association (rather than your local council) would act as managing agent.   Per the EH site, “your local council empty property officer can give you details of housing association schemes in your area.”

Letting Through a Private Rental Agency

If this is the option you are going for, make sure your rental agent is signed up to The National Approved Letting Scheme (NALS).  Such agents have certain standards they are obligated to live up to. NALS-approved agents will:

  • Screen for and locate the ideal tenant. This includes checking references;
  • Give you up-to-the-minute advice on rent and insurance levels;
  • Collect the monthly rent and hold it in a separate account;
  • Prepare and provide a monthly statement;
  • Arrange for safety checks for the utilities;
  • Transfer bills into your new tenants’ name;
  • Set up necessary and routine maintenance work;
  • Handle all administrative and legal paperwork; and
  • Arrange for regular inspections of the property.

Your only responsibilities would be to insure and pay for building insurance, and to take care of any extensive repairs and maintenance.

Selling vs. Letting

If you’re not interested in renting your property, and would prefer to sell, you might consider selling it to a housing association under an “existing satisfactory purchase” scheme.  The process is quick, streamlined and painless.

According to the EH site, “The advantage of selling to a housing association is that you do not have to pay estate agents’ fees and it is normally a quick sale, with a cash purchase and no chain.” 

After both parties have agreed on the price, you transfer your property’s ownership to the housing association and your responsibilities end there.  To be steered in the direction of housing associations which are affiliated with such a scheme, and for further details, contact your local authority empty property officer.

Finally, if you are confident that you could do a good job selling your empty house  on the open market, it’s recommended that you take the same care in  choosing an estate agent as you would a letting agent.  Contacting the National Association of Estate Agents (NAEA) for a referral might not be a bad idea. 

 Graphic courtesy of “Homes from Empty Homes”.

 -David Slade

 

 

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