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jimsmillions
Posts: 177 Forumite
Hi all
At sometime in the not too distant future I will be the owner of my formal home for the obvious not too happy reasons. I am considering renting the property as I dont want to part with it at the moment. Its a standard terraced 2 bedroom house at the low end of the property ladder. All I know is property's of the same type in the exact area rent at about 550 pcm. I myself have never rented so from both sides have no idea about renting.
In basic preferably from a landlord or someone experienced in renting can you tell me
Rent myself or go agency, advice welcomed
Who pays what bills or which are negotiable?
Rough costs i.e. things like landlord insurance
Last but of course not least rough monthly profit (Nothing owed on house)
Any help apprecatied
At sometime in the not too distant future I will be the owner of my formal home for the obvious not too happy reasons. I am considering renting the property as I dont want to part with it at the moment. Its a standard terraced 2 bedroom house at the low end of the property ladder. All I know is property's of the same type in the exact area rent at about 550 pcm. I myself have never rented so from both sides have no idea about renting.
In basic preferably from a landlord or someone experienced in renting can you tell me
Rent myself or go agency, advice welcomed
Who pays what bills or which are negotiable?
Rough costs i.e. things like landlord insurance
Last but of course not least rough monthly profit (Nothing owed on house)
Any help apprecatied
0
Comments
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Good starting point for novice/newbie landlords is to read this:
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=120 -
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The secret of becoming a good and efficient Landlord is to read, read, read everything you can about letting, housing and tenancy legislation, then read some more. Letting a property is not rocket science, but then rocket science is not difficult if you learn everything about it first!0
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If this is an inherited house from an elderly relative be aware of the costs of updating that may be required before it become rentable.
If you are not selling because you have an emotional attachment to the property then it's more difficult because your tenants will not have the same feelings and once they live there it's their home so you will have little opportunity to be there anyway!
Create a spreadsheet, work out all the annual costs, have a decent contingency so that you can get repiairs done speedily. It may not be worth it!0 -
Ask yourself why are you keeping the place.
What are the long term plans.
if the place will never be used by yourself or family keeping it needs carefull thought.
If the plan is to rent then you have to deal with most of the personal issues anyway clearing the place.
Also it may be that a lot of the furniture etc may not be suitable.
Aside from the personal stuff it may be a reasonable investment what sort of value is it, gross yield(rent/value) will give an idea.0 -
You need a good accountant as it maybe best if you did take out a mortgage on the property BTL mortgage and used the money to update the property ( all tax deductable!!!) and rewire the whole house, install all new central heating ( combi boiler), new double glazing etc.
You could also use some of the money to pay off some of your mortgage
Like I said a good accountant needed0 -
You need a good accountant as it maybe best if you did take out a mortgage on the property BTL mortgage and used the money to update the property ( all tax deductable!!!) and rewire the whole house, install all new central heating ( combi boiler), new double glazing etc.
You could also use some of the money to pay off some of your mortgage
Like I said a good accountant needed
Correct me if I'm wrong guys but my belief is that work you do before your first rental is not income tax deductible but may be capital gains tax deductible
Also only the interest on your BTL mortgage would be tax detectable the capital repayment would not.0 -
Correct me if I'm wrong guys but my belief is that work you do before your first rental is not income tax deductible but may be capital gains tax deductible
Also only the interest on your BTL mortgage would be tax detectable the capital repayment would not.
Correct and Correct!
The work done as improvements and modernisation BEFORE the letting starts is not deductable for tax.
Only interest portion of mortgage is deductable as an expense, not the repayment portion.
As for accountant, for one property it is quite manageable to do it yourself. Keep all accounts of incoming and outgoings, and prepare and submit your own Self-assessment tax return every year.0 -
Thanks Werdnal
Just as I thought but always wary of correcting others posts, I agree provided you are well organised you don't need an accountant until maybe you have several properties.0 -
Thanks to all. Its a lot to take in.
In respect to the property. My parents vacated it rather sooner than expected. One was taken seriously ill at and died after 3 months and the other had a mental health issue so went in to a care home. So the house is not in a bad state at all.
Kitchen refitted about 2.5 years ago
Bathroom 5k refit around 3 years ago
Fully double glazed has been for years redone maybe 7 years ago
Combination boiler around 2.5 years old
House was rewired fully about 4 years ago
Cavity walls done
Gardens made low maintenance due to the mental health issue. No grass left at all everything is patio and chippings.
Garage built in garden about 7 years ago, all doors replaced about 18 months ago.
Potential issues I can see are. DIY attic flooring is about 20 years old and not up to scratch. Could simply be removed. There is a perfectly sound lean to at the rear of the house built by a relative. Its wood stained with perspex panel's. Its sound, build and designed by a Master builder but I would imagine not most peoples ideal of a modern lean to. In other words its not over priced and white PVC
I of course have a sentimental attachment to the house. I might rent it. I have thought about dividing it in multiple occupancy and renting it that way (More complicated I know). House rent prices here of this type are 550 to 600 pcm where as a house just up the road same type and build was letting rooms at 325 pcm 2 years ago. 4 occupants = 1300. I might even live in it and rent or sell my own house.
My reasons for wanting to rent are to gain rental income. Nothing is owed on the house. At 600 pcm It cant surely cost more to run/maintain the house than the rental income is? That would be mad.0
Knew there would be a long read in this somewhere :rotfl:
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