Rent a house out for 6 months

white_noise

A friend of mine is going to be working abroad for 6 months and is wanting to rent his house out for the period of time that he is away.
he is wanting to go down the route of letting it out, but doesn't really want to go through an agency as its such a short period and i have offered to help sort problems while he is away. He will be asking for less than his mortgage in rent so he won't be making a profit.
what issues could he face without going through an agency? e.g getting a decent contract sorted out and what tax implications will he have to consider? does he have to pay tax as hes not making a profit?
Cheers
WN

white_noise

bump
WN

princessamy86

I think he will have to pay tax as it is counted as income, a quick (haha) phone call to the inland revenue will clear it up. He needs to make sure his mortgage company have agreed to the rental in writing. It might be worth looking into instructing an agency on a "Let Only" basis, they will sort all advertising, viewings, credit checks, do the inventory and the tenancy agreement then hand the reins over to you, which I think would be easier than trying to find your own tenants, especially if you've not done it before. Get them to come and have a chat then he can compare charges and see if it's worth it. Also don't forget deposits have to go in a registered Tenancy Deposit Scheme, he will also need a gas safety certificate and an EPC, and adequate insurance.

Planner

He should also be aware that he has no guarantee that any tenant he finds will move on command after 6 months.

white_noise

Planner wrote: »

He should also be aware that he has no guarantee that any tenant he finds will move on command after 6 months.

even if the tenancy agreement is set for 6 months and that is what the tenants sign?
howcome?
Cheers
WN

Planner

white_noise wrote: »

even if the tenancy agreement is set for 6 months and that is what the tenants sign?
howcome?
Cheers
WN

Dont get me wrong you might get one of the 99% of tenants who where clear that this is a short term let and they would have to move fter 6 months. But you might get the 1% of tenants who decides to exercise their legal right to remian in the property after the 6 months (fixed term) has expired, which will then require an additional couple of months to apply to the court to remove them.

Theres also the requirement to protect the deposit in one of the Tennancy Deposit Schemes and to get a EPC and a Gas Saftey Certificate.

(This assumes that the property is in England/Wales)

white_noise

Planner wrote: »

which will then require an additional couple of months to apply to the court to remove them.
Theres also the requirement to protect the deposit in one of the Tennancy Deposit Schemes and to get a EPC and a Gas Saftey Certificate.

Cheers
it is in england
it doens't sound too bad a couple of month, hopefully it won't be one of those tenents.
I will mention the TDS, but he is aware of the GSC, what is a EPC?
WN

Planner

white_noise wrote: »

Cheers
it is in england
it doens't sound too bad a couple of month, hopefully it won't be one of those tenents.
I will mention the TDS, but he is aware of the GSC, what is a EPC?
WN

Energy Performance Certificate http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/SellingYourHome/DG_076370

clutton_2

what on earth are you dong agreeing to be a letting agent when you clearly know absolutely nothing about it ??

"a couple of months" can very easily become 6 months

Planner

clutton wrote: »

what on earth are you dong agreeing to be a letting agent when you clearly know absolutely nothing about it ??

"a couple of months" can very easily become 6 months

Yes, O/P you should be aware that thats a 'best case scenario' assuming that everythings in order and you serve a correct s.21 at start of tenancy etc.

PasturesNew

You'd need plans in place in event of:
- tenant phones to say building's burnt down and it's now your responsibility to immediately rehouse them
- tenant phones to say the building's flooded and it's now your responsibility to immediately rehous them
- tenant phones because the heating's packed up, your heating engineer has attended and says the boiler is condemned. Now get a new one fitted.
- the police phone you to say the tenants have done a bunk after one almighty row. The place is trashed, 2 windows smashed and the front door's insecure because the tenant's OH smashed it in when they were drunk and denied access. Pop out and sort it out.