Co-ownership Letting

[Sali]

I'm thinking of sharing a buy-to-let mortgage with a friend. The plan is to let the property fully managed through an estate agent. However, we would still be responsible for sourcing tradesman, the gas safety cert, insurance etc.

 

I was thinking of getting an agreement drawn up by a solicitor to ensure that these tasks are carried out alternatively and not lumbered on one party. I know that friends can fall out and don't want to be in a position where say the gas safety isn't done one year or the insurance wasn't renewed and that I've unknowingly jeopardised the safety of the tenants.

 

I'd be interested in knowing whether anyone else has thought that a legally binding agreement necessary and what they included in it.

[Catlover64]

Don't know much about this, but thinking logically, I would suggest the following:

 

It's probably a good idea to get an agreement drawn up. In that agreement, why not ask that each party transfers a certain amount of money every month to be placed in a separate interest-bearing account which cannot be drawn on unless both parties agree.

 

That way, the expenses are covered jointly and there's no arguements about who pays for what and when. If you're thinking of getting the property fully managed, I would imagine that sourcing the tradesmen would be the responsibility of the managing agent in any case.

 

Does anyone have any other thoughts on this?

 

Hope this helps!

[Sali]

I think the money is not an issue as the rent will go into a separate account from which mortgage and other sundries (gas cert, insurance, repairs) will be paid. However, from speaking with other people who already have buy-to-lets, property management agents do not always use the best tradesmen (the cynical me would think there's some back-hand deals on the go) and are not obliged as part of the contract to check the work. They 'may' phone the tenant who doesn't quite have the same interest in making sure the job is well done and is value for money as would the property owner. The gas cert is also the Landlord's responsibility as he would be prosecuted for any failure.

 

To arrange workmen, to check on jobs - whether it's pruning the trees or exterior painting - takes quite a bit of time and effort. I think resentment would brew if one party felt they were taking all the responsibility and I don't want to be in that position. I thought a legal agreement would be my safeguard.

[Catlover64]

Yes - I see what you're saying.

 

Do either of you know of any tradesmen you can rely on? I would get together all their numbers on a database, and arrange some sort of timetable as to when & how these people are contacted. Diary out the gas check, and any other scheduled maintenance and have this worked into any agreement.

 

Is there any chance you can get someone independent to project-manage this for you? It won't come cheap, but may save aggro!!

[Sali]

Thanks for your response. Does anyone know tradesmen they can trust and rely on? I constantly use different tradesman on my own house because I have never found one person who I think is any good.

 

I think I will go the solicitor route and just tell him my outline idea. It'll cost in money, but hopefully save me in grief and stress.

[Emma1973]

Phone the Council or a Home Improvement Agency if you have one in your city. They keep lists of reputable contractors who are reference, etc, etc

[Sali]

Thanks Emma. I did exactly that just a few months ago for a shower installation. Wasn't impressed as I had to make him come back and seal the bath. His excuses were miserable. There must be one good tradesman out there somewhere!