Should I rent out a dilapidated property?

Should I rent out a dilapidated property?

9:40 AM, 12th January 2024, About 4 months ago 24

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Hello, We have a property in the family that we have taken back into possession after a very long rental term, circa 50 years. As you could imagine it is now quite dated and run down inside. All still functional just in need of modernisation all the way through.

No central heating, just electric heaters, an old bathroom and kitchen, gravity fed hot water. 90% double glazed. Has a leak on a flat roof that wants recovering and 2 windows that need double glazing. Needs decorating top to bottom unless 1970s is your taste.

We have a family who are willing to take it as is, and do the work themselves, albeit for a substantial reduction from the market rate rent. Which we are happy to do, for various reasons.

I rent other properties out and know what should and shouldn’t be done generally when preparing a property for rent.

My question is, are we okay to rent it this way?

It wouldn’t get a decent EPC result, there is major work that wants doing. It has been rewired but wouldn’t pass an EICR, without a board swap and some sockets upgrading.

Is there a contractual way to rent it to them given they are happy to take it the way it is?

Thanks in advance for anyone who can assist.

Joe


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Comments

Joe Marshall

13:48 PM, 12th January 2024, About 4 months ago

Reply to the comment left by SimonR at 12/01/2024 - 12:45
Not sure on the EPC as with no heating i cant remember how that is viewed, i will have a chat with our sustainability engineer at work. Thanks for the input.

Michael Booth

17:53 PM, 12th January 2024, About 4 months ago

You say that you are already a landlord with that in mind you know exactly what to do, if not you are not allowed to rent a property that is not fit for purpose .

Michael Booth

18:02 PM, 12th January 2024, About 4 months ago

Reply to the comment left by xBrito at 12/01/2024 - 10:20
Complete waste of time , bring the house to modern day habital standard or sell up, pointless that clap trap legal tenancy all this will do is cause a complete legal nightmare , do the job properly or sell up.

xBrito

18:22 PM, 12th January 2024, About 4 months ago

Reply to the comment left by Michael Booth at 12/01/2024 - 18:02
You clearly did not read my comment correctly - can i suggest spec savers

Michael Booth

18:33 PM, 12th January 2024, About 4 months ago

Reply to the comment left by xBrito at 12/01/2024 - 18:22
Sorry sent to wrong person looks like spec saver getting a call.

Paul Essex

19:32 PM, 12th January 2024, About 4 months ago

I am confused I thought these lease arrangements were now illegal and everything became an AST. So what happens at the end of the lease, is it subject to the same nonsense as an AST??

Judith Wordsworth

9:08 AM, 13th January 2024, About 4 months ago

Reply to the comment left by Graham Bowcock at 12/01/2024 - 13:43
The poster is not talking about the past long term tenant but granting a tenancy to someone new.
If this new tenancy is longer than 7 years it will need to be registered at HMLR.
But if the property is not, not cannot reach, the minimum EPC then it can’t be rented out whatever the agreement, same as if not complying with EICR and/or gas safety certificate.

Mike T

15:26 PM, 13th January 2024, About 4 months ago

Having renovated, rebuilt, and restored a number of properties over the years and been a landlord for the past 20 years I'd like to add my comments on the situation Joe finds himself in.
Joe, I think you have only two options. (1) Bring the property right up to decent modern standards and don't skimp or 'make do'.
(2) Sell as it is. Even perhaps to a Homes under the hammer viewer.
Selling would mean you don't have the cost or worry of complying with all the legal/regulations/good or bad Tenants etc., etc. and also C.G.Tax.
Joe, if you have been a landlord for any length of time and been a member/follower of !!8 you should already have some idea of the potential risks v gains. Good luck which ever way you decide to go.

Paul Essex

17:17 PM, 13th January 2024, About 4 months ago

In answer to my own question, these repairing leases seem to apply to tied cottages or those owned by the Crown or a Government Department I am pretty sure us lesser landlords can't use them.

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