Anyone a live in landlord?

I'm looking at buying a 3 bed in London (new build) and thinking of renting out the other two rooms to people I know.

Anyone done this before? Any frustrations living with your tenants? 

The rental income should cover the mortgage/service charges/some of the bills... So I'd be living in London essentially for free while people pay off my mortgage...

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Comments (5)

Jun 10, 2021 - 2:43pm

I did as a tenant - it's a good friend of mine (if not my best friend), the arrangement was as follows:

- I would pay just a bit below market (c.10%) given that 1) he was not taking a risk on me damaging the property 2) I would respect his set of rule (which were very lax but with some odd ones) 3) he had better visibility on when I wanted to move etc 4) given that I am his friend it's an incentive for me to live there as opposed to elsewhere with random flatmates

- I would not deal with the bills / and other stuff given that it did not matter he'd pay them anyways

However before I agreed to move it I made sure that 1) he was able to sustain mortgage payments without a tenant - i.e. there was no key man risk for him should I leave else I'd feel bad if I ever moved out (which I did eventually), 2) while no contract was signed there was a gentleman agreement that I'd pay on time etc (for tax reason amongst other stuff) and 3) I was able to move out anytime as long as I did flag it early enough (I think it was 30 days notice)

Jun 10, 2021 - 2:50pm

great info.

that is a good point on knowing they won't damage the property. I will charge them a bit less.

what were the odd rules? I need to ensure these guys take the trash out because I know theyre lazy as hell

Jun 10, 2021 - 3:07pm

Did this but in a city where I didn't really know anyone, Craigslist roomies. Good setup as I wasn't paying anything into my mortgage, but my tenants were as follows:

1. Great guy, had a 3 wks on 1 wk off job so basically used my house as a laundromat, super clean, chill, and left to go camping when he was off work.

2. Crazy chick, quit her job the day she moved in, ex-husband paid me the rent. Up all hours of the night, drank my booze, ate my food, tried to bang me (looking back I should have done it for the lols), brought back dudes, chicks, whatever. Ex quit paying her (nothing legal as they weren't formally separated), and she packed her shit and moved across country the next day

3. Dude that told me over and over again about how he was a christian, man of god, etc. I don't really care but it was so emphasized I was like okay this guys probably a pedo but money is money, took a chance on him. Pre-paid me for 2.5 months of rent, showed up for 1 day, didn't see him for like 5 days so I texted him to see if he was okay, he'd checked himself into rehab, wouldn't accept the money back, left all of his shit and never picked it up.... finally went and took a peek through his shit and it was like a few sets of clothes then pills and needles.

Doing it with people you know will be much better, I agree with the poster above make sure you define rules and expectations, if it's friends you know they should be giving you plenty of heads up if they do move out which is nice for keeping continuous renters. It sounds silly but even things like "no dishes in the sink" are good to make sure it's understood.

Lastly, do not buy more than you can afford without renters, I was not in this situation more or less just greedy so always wanted renters, thus the craigslist homies. If you buy more than you can afford you will wind up in the same situation and will drop your standards for people you would live with, and will end up with crackheads squatting in your house.

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