house to rent questions?

fishingdobbie

Hi, I hope somebody may be able to point me in the right direction in regards to a property we have just inherited. My initial reaction is to sell it, but if we decided to rent it out, what legal certificates and checks would I have to get, before being able to do so.
What about building and content insurance, council tax, water rates etc, does the tenant pay it, or do I, and then add it to the rent. I have trawled through this site but have not found the answers. New to all of this. Thanks, Bert

m_13

Hi Bert

If you are thinking of renting then I recommend you invest c£8 in one of the lettings books out there that explain things far better than I can. I bought 'Successful Property Letting' and it's been a great resource. I also use the www.landlordzone.co.uk forums which are very helpful.

On your specific questions:

what legal certificates and checks would I have to get, before being able to do so.

To rent out a property you need to have an Energy Performance Certificate, a gas safety certificate, smoke alarms, electrical safety certificate and if it's furnished you'll need to comply with the fire regulations relating to furniture and also the Portable Appliance Testing regime for any portable electrical item under 18kg such as microwaves, kettles etc.

What about building and content insurance, council tax, water rates etc, does the tenant pay it, or do I

Buildings insurance is the landlord's responsibility in all cases unless the property is leasehold when the management company usually cover it. There are two forms of contents insurance. If the property is furnished then you should take out landlord's contents insurance to cover the furnishings and items you provide. The tenant would take out contents insurance to cover their items and if unfurnished this would cover all their furniture etc. Council tax whilst the property is empty is your responsibility and can be deducted from the profit you make on the rent. However, many councils allow a period of 6 months in total with no charge whilst a property is unfurnished and empty. Tenants are responsible for council tax, water rates/meter charges and electricity/gas whilst they are resident. However, you will have to pay when the property is empty for all services including standing charges. Sometimes, rather than switch the bills back and forth between tenant and landlord the bills stay in the landlords name and the tenant pays but this is more complicated.

One thing you may not have considered is that if the property is mortgage free then all the rent less allowable charges will be profit and therefore taxable. If the property is owned between multiple people then the profit will be shared between you all and you will need to have legal paperwork done to assign the property correctly as tenants in common for the correct shares (for example, 25% each for four owners) and complete Form 17 for the tax office to use these shares to apportion profits and tax.

clutton_2

read https://www.singingpig.co.uk and https://www.landlordzone.co.uk

fishingdobbie

thanks very much to both of you most helpfull