Renting Flat out, should I do work to it?

MoneyLosingExpert_2

I hope some of you can help me, a couple of years ago I bought a large two bedroom duplex flat in a converted factory. I'm looking to rent it out in the summer due to moving in with my OH.

The flat is filled with professionals, whereas I have an old sofa and chair with a throw over it and an old carpet on the stairs. The flat is situated within 5mins walk of the small town we live, and the train station and is 5mins drive from the M1.

My question is, should I spend that little bit (approx £750) buying new sofa and replacing stairs carpet to make it fairly high end or should I leave the flat the way it is and get the renters in then judge what to do with their comments included? It's quite difficult because a brand new bathroom, fitted bedroom furniture and expensive beds make me think its nearly there, I'm just not sure whether to go the extra mile to wow the rental market.

Any thoughts?

poppysarah

Rent it unfurnished.

If you're ashamed of the sofa say it's the last tenants and you'll be getting rid of it... Just a little blag...

JayZed

Sounds as though letting it unfurnished might not be a option if you've got fitted bedroom furniture and expensive beds in there.

If you're letting it furnished, I would do as you suggest and wait to see what potential tenants say - that gives you the most flexibility. Make it clear that you're prepared to replace the carpet and the sofa if they wish: this will be an added incentive as it means that potentially the tenants can have some say in what sofa you get for them.

mlz1413

If you rent it furnished you need to comply with current fire regulations so it's probably better to remove the sofa, are you leaving the bed or is this something you want to take to O/H?

If the stair carpet is in good order hire a steam cleaner for a day and make it look as good as it can. If the carpet is fraying then get it changed.

If you price the rent to reflect it is unfurnished then that should get you a tenant. If you have a lot of people round saying they want it furnished then ask if they would still want it at £X more but fully furnished - this should show who is serious and who is wishing.

if you do rent for more, don't buy anything until a deposit is paid and the references done, to show the tenants are serious and suitable.

MoneyLosingExpert_2

Thanks to all for their replies, although I'm not sure what Linsey Leah is referring to. I won't be wanting to take anything with me (the best bed is Kingsize and really can only be at the flat where there is a very large attic room). However, if I find a lodger who has their own furniture I can put mine in storage.

I was hoping to rent the rooms out separately and therefore thought I'd probably have to furnish the communal living/kitchen area. I have looked on the market and there are a lot of new builds that you can rent cheaply nearby, but none furnished. There may be a reason for this though! I think I'll do as JayZed states and just keep all the options open and emphasise that to prospective tennants.


Thanks again all, this site is so helpful!

m_13

If you are renting out property you can deal with renewing and replacing items on one of two ways.

You can claim a 10% allowance each year for wear and tear or you can claim each time you replace an item. However, you cannot claim for upgrading the item.

If the carpet is threadbare then you can claim the cost of replacing it with a similar carpet against your profit but not upgrading it!

MoneyLosingExpert_2

m_13 wrote: »

If you are renting out property you can deal with renewing and replacing items on one of two ways.

You can claim a 10% allowance each year for wear and tear or you can claim each time you replace an item. However, you cannot claim for upgrading the item.

If the carpet is threadbare then you can claim the cost of replacing it with a similar carpet against your profit but not upgrading it!

When you say claim, do you mean off the deposit? I assumed that it was my responsibility to keep the place looking well, and unless there was 'unreasonable' wear and tear, then it would be my money keeping the property working and looking well. I'm not sure I'll be able to increase the price to include replacements as I would need most of the income to cover my mortgage (until September at least when I come off my fixed rate).

mlz1413

You can only have a lodger if you are residence in the house - so you cannot rent both bedrooms to 2 different people and let them share.

M_13 is refering to the taxable allowances you can claim.

If you are unaware of what a LL is responsible for, the legal agreements needed and the fact you have to advise HMRC then I would highly recommend you do not rent your home out until you are aware.

MoneyLosingExpert_2

mlz1413 wrote: »

You can only have a lodger if you are residence in the house - so you cannot rent both bedrooms to 2 different people and let them share.

M_13 is refering to the taxable allowances you can claim.

If you are unaware of what a LL is responsible for, the legal agreements needed and the fact you have to advise HMRC then I would highly recommend you do not rent your home out until you are aware.

I'll certainly get advice before doing anything and will have to look into the HMRC, but if I won't be making any money on it I won't be taxed will I?

mlz1413

If rent out your flat you have to fill in the tax forms and submit them - regardless of if you make a profit or a loss.

If you have a lodger - ie someone who rents a room in your main residence - then if your rent is under £4250pa you can use the rent-a-room scheme allowance.

Try Landlord Zone's website and Direct.Gov under renting

clairet707

mlz1413 wrote: »

You can only have a lodger if you are residence in the house - so you cannot rent both bedrooms to 2 different people and let them share.

M_13 is refering to the taxable allowances you can claim.

If you are unaware of what a LL is responsible for, the legal agreements needed and the fact you have to advise HMRC then I would highly recommend you do not rent your home out until you are aware.

Where has the lodger talk come from?

OP is talking about moving in with his OH and letting the flat out, you certainly can let it two different people but you might find more problems with this than letting the whole flat to one person

Oh and fitted wardrobes can be included in an unfurnished place but if you are providing a bed, I would go for part furnished, or advertise as unfurnished and see what the tenant says