New to renting out...

inkie

Hello

Just looking for some advice really. Situation is this - we have our own home (circa 20K mortgage outstanding, worth about £120K). I have the oppertunity to move into free tied (larger than what we have at the moment) accomodation with my job - at the moment I receive £2,500 housing allowance on top of my salary for living in my own home, which obviously will stop if we move into their property. We therefore have the potential to rent out our house. The other advantage is that we will not have to pay council tax for the tied property, as this picked up by employer, as is phoneline and buildings insurance etc..
I have never done anything like this before,:eek: as we have lived in the same house since being married many years ago!

What are the potential pitfalls/advantages - looking for advice/people experiences etc in terms of:

• whether to use an agent or not
• Anyone had any problems with tennants
• How do you square it with the mortgagees (we are hoping to be paid off in 3 years)
• How long are 'lets' for, and can you get someone out if needed?
• Furnished or unfurnished
• Safety checks etc....

Sorry, so many questions, but completely new to this game and wanted to test the water with those with more experience than me!:o

TIA Inkie

clutton_2

join national landlords assocation - worth their weight in gold

read www.singingpig.co.uk and

www.landlordzone.co.uk

bw

boyse7en

• whether to use an agent or not

Depends how close you will be living to your old house. If too far to comfortably drive to if required, get an agent. If you are reasonably close I wouldn't bother as you will be able to organise viewings/repairs/checks yourself

• Anyone had any problems with tennants

Personally, no. But that doesn't mean that there will not be problems in the future.

• How do you square it with the mortgagees (we are hoping to be paid off in 3 years)

Ask you lender for permission to let. They may charge you more on the mortgage for this. If possible, change to an interest only-mortgage as the interest payment is tax-deductable. If you pay off your mortgage completely, you will pay tax on all income from letting.

• How long are 'lets' for, and can you get someone out if needed?

an AST is 6 months. Serving notice on tenants can be complex and has to follow a strict set of rules. NLA will provide details of what is required

• Furnished or unfurnished

What is your market going to be? Unfurnished is less hassle (fewer deposit problems, fewer repairs/replacements) but some market sectors will demand furnished (students, for example)

• Safety checks etc....

again, NLA will give details, but at least a Gas Safety Cert is required annually

inkie

Depends how close you will be living to your old house. If too far to comfortably drive to if required, get an agent. If you are reasonably close I wouldn't bother as you will be able to organise viewings/repairs/checks yourself

Ten miles at the most, and so would be able to oversee ourselves.

Ask you lender for permission to let. They may charge you more on the mortgage for this. If possible, change to an interest only-mortgage as the interest payment is tax-deductable. If you pay off your mortgage completely, you will pay tax on all income from letting.

Just wondering how it would work re: mortgage in that we are on a fixed rate - would this mean that they can't then charge us above that rate?