Conversion to residential to let

[BobW]

Hi everyone
I'm new to this forum andam looking fro advice on acouple of matters:
I'm converting , family owned property in London to 4 x residential flats to let from office accomodation.

What appliances do I need to provide in the kitchens apart from extractor, hob and oven? I'm very aware that the more appliances are provided - or worse built in that call out / maintenance costs could easily balloon and be a regular drain on income. My view is we should put in the min. The architects say we need to provide dishwasher fridge freezer, washer/dryer etc...

The family all live at least 100 miles away from the property so these will be managed lets, so it's not as if we can go and do any maint ourselves. The Agents I expect will find it in their interest to support callouts as they'll have an arrangement with their preferred contractors.

Secondly how can we ensure the prices / costs for the conversion are "reasonable" and as not being on the spot in London we keep tight control over quality and cost.

Has anyone been in a similar situation?
Many thanks in advance for any advice,

BobW

 

[Jeff Djevdet]

Hey Bob,

It depends upon the spec of conversion/area/target market etc but these items are pretty cheap in the grand scheme of things and don’t go wrong too often if used correctly. You could employ an architect or QS to oversee the project if you have concerns.

 

[BobW]

Hi Jeff,
Thanks for your reply.

Yes we are employing architects, but in my experience, and although it may look nice and swish they forget every penny they design is coming from someone else's pocket.

The appliancese may not in themselves cost a lot - well 4 x everything does start to add up - but is more the cost the could be run up on landlord responsible call outs when the fridge light doesn't work, the washing machine / dishwasher's leaking etc.....

I have friend who had in 1 years nearly £1500 of call outs and an appliance replacement in a flat where the gross rent was £8k p.a. That's a huge % to lose.Take off agent fees, other expenses VAT and tax and their return was miminal.

 

[Jeff Djevdet]

Fair point, you should go with what you think best I guess!

 

[Donquick]

Hi - I had this question in a recent letting situation too. As you say, if you provide and appliance you are then responsible for the maintenance of it. It is bad news all round really, first you have to pay for it, then you have to take responsibility for it. Invariably, you have to provide new these days as some people will turn their nose up at having to use fridges and washing machines used by others.

My advice would be to find out what you tenant wants and reach an arrangement that suits both parties. It is very common for tenants to own at least some appliances. Where this is the case, they will probably prefer their own appliance to yours as theirs will probably be a higher end model than you buy for a let property. If they already own an appliance and elect to used their own, you have wasted your money and you then have to move yours out. If they think that they should use yours as it is in situ, they are left with a storage issue for their own goods.

Make sure the agent is clear that you are willing to buy appliances if required and is able to reliably pass this information on to the prospective tenants, but leave it on a cooperation basis so that both parties get what they want from the arrangement. There are no hard and fast rules and I would say that talking to your customer is best. Don't make the mistake of thinking that you can't talk to the tenant just because there is an agent in the arrangement.

I am surprised that an architect feels inclined to comment on which appliances you have to put in your flat to rent it. It has nothing to do with the architect's job. Are you sure that they don't just mean that you need to design the refurbishment with space for the various appliances.

Before you jump into managed lets, which are going to cause a lot of extra costs and communication problems, consider whether it is necessary. I rent two properties in the UK and I live in Spain for part of the year. I have excellent relationship with my tenants and I am able to communicate promptly and efficiently with them via email. If something is needed I arrange it from here. This formula has worked well for a long time and I have never had a problem.

I benefit from knowing what is happening in my houses if there is anything wrong, I know who the people are and have an open line of communication. As a bonus i can save thousands in fees over the years in the process. Emails from tenants average two per year i would say and they are easily dealt with. At worst i might need to call a plumber or something but it's not that hard with the internet etc.

The tenants benefit by knowing that I am available to talk to and I know the house and I know them. We are on very friendly terms and there is a great level of trust built up. The anonymity created by dealing through agents leads to a breakdown in this trust and it cost a lot of money and can lead to unrealistic expectations on the part of tenants.

Just one viewpoint, but perhaps you should try doing it yourself and see how you get on before rushing into a managed situation. You can always get somebody involved later if things get too much for you.