How to prepare an inherited property?

by Readers Question

10:23 AM, 29th February 2016
About 3 years ago

How to prepare an inherited property?

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How to prepare an inherited property?

My brother and I have recently inherited a 45 year old property which was completely owned outright, it is in a nice area with good schools. cart

The local estate agent say’s he has a waiting list of families waiting to rent or buy, he suggested some improvement tips to prepare the house which are estimated at £10,000.

My son who has a rental property of his own say’s we should not lay out on improvements until we have the rent money in an account.

What are your thoughts?

Julie



Comments

Neil Patterson

10:25 AM, 29th February 2016
About 3 years ago

Hi Julie,

How are you intending to maximise rent before the property is renovated and how will you do it once the tenant has moved in?

Andrew Holmes

11:39 AM, 29th February 2016
About 3 years ago

Probably cheaper to get the work done in an empty property where trades people can get in an unhindered to complete the work and are not working around a tenant and their belongings.

Secondly, if you move someone in and problems develop, as they do, you may have to re house the tenant to get the work completed.

Its about investing a little money now for what i assume will be a long term rental income for yourselves.

Andrew

Steven Burman

12:12 PM, 29th February 2016
About 3 years ago

Julie

If the improvements result in an increased rental value then get them done before you let. As Andrew rightly points out, it is quicker, easier and ultimately cheaper to do the work to an empty property.

SB

eddie tee

12:15 PM, 29th February 2016
About 3 years ago

Wow ! 10 K on improvement tips that sounds excessive. I wondered what the location is. I would constitute a 10K budget as a mini refurb. If you are near me at all I may be able to help you.

I think before you do anything with the property you should decide on a strategy first of all.

You should ask yourself what you want from this property. i.e. cash flow , income, capital gain. Are you in it for the long term or would you be happy to sell ? There are lots of ways you can go depending on your circumstances.
Dont forget to research what being a landlord entails i.e. legislation, tax implications, tenants rights etc.

Cheers Eddie

Graham Bowcock

12:50 PM, 29th February 2016
About 3 years ago

Julie

As a landlord and a letting agent I agree with the consensus of the others above that you ought to prepare the house properly before bringing it to the market. Obviously you need to arrange appropriate safety checks so no doubt you will have some works to do anyway.

Depending on the local market and type of property you may only be looking at a freshen up. Tenants like reasonable kitchens and bathrooms, recent decoration and carpets with everything clean and tidy. Showing an unfinished house will not be attractive to most tenants - show them what they are getting.

I suggest you ask a couple of local agents for their views on the standard you need to achieve and what rent they would expect to get. Although many areas are undersupplied with rental houses we do still find that those which need some TLC are slow to go.

Graham

Puzzler

20:44 PM, 29th February 2016
About 3 years ago

How does your son think you're going to get any rent money with an outdated property?? Plus you will only get rent for it in its current state so lower than you would if you do it up. If it's been untouched for 45 years or even less you may need a new kitchen and bathroom which is where the £10k comes from, although depending on size you might get those for less. If you make it nice, you'll get nicer tenants (in general) and higher rent.

As Neil says how are you going to do it once you have a tenant? and if you do, how are you going to put up the rent? Don't understand your son's logic at all


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