work on rented property??

rent_and_buy

Im thinking of renting my property out and we will make over 200 pound a month, now the house is okay but it does need things doing, when my profits have built up can i use the money for improvements on the rented property?

What i will do is just set up a bank acount for the property, whatever goes into that acount, will pay the mortgage, homecare,insurances, fees and all work that i think needs doing.

Im not really bothered about making money through the rent, but if i can get the property up to a real good spec through spending the profits, it will be beneficial all round.

clutton_2

and what will you do if work needs doing to the property before your profits have built up ?

confused31_2

theartfullodger wrote: »

So you make £200 a month, tax man gets £80 of that (assuming 40%, £44 if you are on 22%).

Only some improvements are allowable as expense against your rental income. e.g repairing broken toilet - OK, claim expense on your tax return, new bathroom - nope, you pay sunshine..

Do you think you understand the rules, regulations, responsibilities, risks and fun of being a Landlord?? What will you do if you get the tenant-from-hell who pays nothing after moving in, takes 9 months to be evicted, and you are still paying the mortgage & legal fees??

Welcome you the easy & profitable world of renting out property...


Best wishes - to you AND any tenants you get..!

Lodger

fool:cool:

another person who thinks he his the only one who can do something.

rent_and_buy

clutton wrote: »

and what will you do if work needs doing to the property before your profits have built up ?

the house is up to a good enough standard now, its just we might aswell do it up when we have some spare cash, we might not have the spare cash, but if we do we might aswell put it back into the property.

If nothing goes wrong with the property we just pick up the 2400 each year, we are going to put it in the missus name , has she doent work and she is entitiled up to 4250 pound a year

rent_and_buy

theartfullodger wrote: »

So you make £200 a month, tax man gets £80 of that (assuming 40%, £44 if you are on 22%).

Only some improvements are allowable as expense against your rental income. e.g repairing broken toilet - OK, claim expense on your tax return, new bathroom - nope, you pay sunshine..

Do you think you understand the rules, regulations, responsibilities, risks and fun of being a Landlord?? What will you do if you get the tenant-from-hell who pays nothing after moving in, takes 9 months to be evicted, and you are still paying the mortgage & legal fees??

Welcome you the easy & profitable world of renting out property...


Best wishes - to you AND any tenants you get..!

Lodger

Oh if thats the case then i better re mortgage now and get all the work done before i let my property out.

How much do you reckon i will need for a re-wire, new condensor boiler and radiators, double glazing, conservatory, porch, driveway block paved, patio block paved, kitchen refitted, new bathroom, all walls and ceilings plastered, a 2 week holiday and a brand new car?

I reckon about 50,000 what do you think?

mlz1413

rent and buy, you may well have gone into renting with your eyes open and some of the above comments are harsh, but I think the main point is don't spend it until you've got it.

Once you have tenants in, properly checked, deposit with scheme, AST and inventory signed. Then let the tenant stay for 6 months and see if they pay on time, treat the place well and don't annoy the neighbours.

Then if you don't have to spend a small forturne on repairing a load of broken stuff and funding voids, try each year to have work done you can claim for on the tax return, as betterment is not allowed conservatory and porch would be from your own pocket.

Snakeeyes21

£200 a month!! where abouts are you, im packing my bags and moving if its that cheap up there.
you cant get a bedsit down here for less than 400 a month

m_13

rent_and_buy wrote: »

If nothing goes wrong with the property we just pick up the 2400 each year, we are going to put it in the missus name , has she doent work and she is entitiled up to 4250 pound a year

If you own the property as joint tenants with a 50/50 split then the income is split 50/50. So far as the income goes you can't 'put it in the missus name' unless she owns 100% of the property or you are tenants in common with a 99/1 split and have completed Form 17 to tell the inland revenue you want to divide the income in line with ownership shares. If you are tenants in common with a 99/1 split then she would have 99% of the income against her income and you would still have 1%.

birduk

Snakeeyes21 wrote: »

£200 a month!! where abouts are you, im packing my bags and moving if its that cheap up there.
you cant get a bedsit down here for less than 400 a month

I think the OP means that the difference between their mortgage and the rent will be £200. Not the cost of the rent.

rent_and_buy

Thanks for the responses, i dont think we will be renting for a bit, could be 6 months could be 12 months.

Im just going to get everything in place, i know its no good spending the money before you have got it.

I am looking at doing it myself, when we do it, like someone said it will probably just best leaving it in the one pot and when things need doing we will just use it from that.

The 200 pound is what will be left over after we have paid for the mortgage, rent guarantee, landlords insurance and homecare.

This has only come about because we was going to rent and buy, i was going to get a buy to let mortgage,but has we only have one property and we have no where we would like to buy, im going to get a long fixed residential mortgage, on the property we already own and live, ive already asked the bank if in the future we can have consent to let and they have said yes for a small fee.

This will save us over 100 pound a month if we let, like i say "if we let" its a big if, if a house dont come along i will be staying put.



However i have spoke to the wife and she has said if we dont move she wants the work done round the house, so im borrowing additional money to have the work done on the house, if a house comes up and we havent spent the money for improvements we will use it as a deposit for a new house.

And before anyone gets on their high horse and says its not right or worse fraud take a look at what the word means.

Basically i will be going to the bank asking for a mortgage with a added 65000 pound so my total mortgage then will be 115000 on a property thats worth 150,000 pound.

Some people have a problem with me doing this, but i think there is a hint of jealousy there, im not a btl landlord with a load of properties,i have one house and its a residential property, and if i see a way to ensure a lower rate what none of you buy to let landlords can get then tough titty.

cheers for the sensible responses, dodger heres a pint of bitter for you:beer:

sooz

rent_and_buy wrote: »

Oh if thats the case then i better re mortgage now and get all the work done before i let my property out.

How much do you reckon i will need for a re-wire, new condensor boiler and radiators, double glazing, conservatory, porch, driveway block paved, patio block paved, kitchen refitted, new bathroom, all walls and ceilings plastered, a 2 week holiday and a brand new car?

I reckon about 50,000 what do you think?

If it needs all of this doing (especially the rewire), it doesn't sound very rentable now.