View Full Version : Judging whether to change a letting situation

02-03-2010, 22:44 PM
I have a 4-bed property that has been let out as rooms, which is the easiest and financially safer way for me to let this property.
(I have let it a couple of times in the past to professional sharers but never to a family, due to the style/location and no garden).

Because it has been tough to find tenants in the last couple of years (but the property is in fine condition, near transport, shops, etc) I currently include the utilities in my tenant's rents but as I cannot charge rents higher than the market will stand, I end up making less rent and bear the utilities costs myself.

I am otherwise very happy with the current tenants and they appear to be happy to stay and all have renewed their tenancies recently.

However, I keep an eye on the market and have seen comparable homes where I could get about £200 more per month and also, I would not have to pay the utilities, which comes to another £150-£200 per month.

So my question is: given the above situation, at what point do you think it would make sense for me to try to let the home as a single property, with the risks that would exist with such a change, of;

* Not finding a new group of suitable tenants soon after the current group leave and be left with a void which I can't really afford right now.
(About 3-4 months of being empty would wipe out any potential extra rent for the year, but currently, I would not be able to meet my costs for month 1).

* The new tenants end up not being as great as my current group or that they end up being trouble for me.

* That I won't get the rent that I am told I could/should get.

As some of you may already know, I am based overseas so while I can advertise for new tenants online, I cannot meet and show potential tenants around and so I will have to use an local agent or at least a viewing agent (I found a property maintenance company that will consider doing this!).

One part of me says don't "rock the boat" given that I have a good situation with no issues/troubles (other than maintenance things from time to time), while the other side of me sees the difference in rent and thinks, maybe, perhaps....