Renting My First House.

shaz77_2

Hi All
I hope to have my three bedroomed house rented out by the end of January, I am looking for advise on any loose ends that I may need to tie up before renting the house out, I have carried out the following:

1. House has been cleaned and is fitted with two functioning smoke alarms.
2. The mortgage in place allows the entire house the be leased out.
3. Building insurance has been setup which again takes into account that the house is being leased.
4. Electricity is currently in my name, however when the new tenants arrive I get the account transferred to them.
5. Monthly rent charges will equate to my mortgage payments of £400, this price is in-line with other houses in the area.
6. Tenancy agreement has been drawn up by myself.
7. Phone-line is currently disabled - new tenants can re-activate it under their names if they wish.

Is there anything else I need to take into consideration?

Fire_Fox

Gas safety certificate? Electrical testing of any appliances? Have you joined a landlord's association? Have you registered with the inland revenue for income tax purposes? Money set aside to pay the mortgage in the event of non-paying tenants or for running repairs? How are you going to vet prospective tenants?

shaz77_2

Some good feedback - Thank you.

I currently have around 6 months mortgage payments set aside.

I have not joined the Landlords association, I will however do this.

Regarding tax, will I have to pay it on the full amount I get each month?

sequence

What about maintenance? Do you have good tradesmen lined up in case emergency burst pipes etc... Get you TA checked buy someone at least experienced to spt any problems. You can't transfer the utilities into you tenants name without their permission. (they may not want gas or electricity!? )

shaz77_2

sequence wrote: »

What about maintenance? Do you have good tradesmen lined up in case emergency burst pipes etc... Get you TA checked buy someone at least experienced to spt any problems. You can't transfer the utilities into you tenants name without their permission. (they may not want gas or electricity!? )

Good point, I have a tradesman lined up.

I wont be transfering any utility bills to a tennant without their permission, however what if they avail of electricity when the bills are in my name?

P.S. Is it normal for the landlord to pay the rates themselves?

jamesb1239

I would have phoned your Electricity and Gas suppliers and informed them that you are letting the property out and give them final meter readings from when you let it out. Also out of courtesy and to cover yourself I would also notify the council that you are no longer liable for council tax at the property.

elfen

Gas safety and PAC (eletrical equipment safety) testing. By rates, is it water or council tax? Both are usually paid by the tenant unless in tenancy agreement that LL pays them (I've always paid CT and water)

clutton_2

Tenancy agreement has been drawn up by myself. - extremely foolish.... use the one on national landlords association website once you have joined

also - use an agent to get your first tenants in .... spend 6y months reading www.landlordzone.co.uk and www.singingpig.co.uk and buy some books and research the business you are embarking on as you obviously know very little... let an agent deal with it for 6 months then you will know the ropes

Thrugelmir

shaz77 wrote: »

Regarding tax, will I have to pay it on the full amount I get each month?

Only the interest element of the mortgage is offsetable against rental income for tax purposes.

The capital element of your mortgage repayments will need to be funded from after tax income. Certain other costs are deductible from rental income before tax is calculated.

If your monthly rent = monthly mortgage. Then you will be funding part of the cost yourself. Have you thought this through?

clutton_2

what will you do if the boiler packs up and you need a new one ?

shaz77_2

clutton wrote: »

what will you do if the boiler packs up and you need a new one ?

It recently been serviced, I also have a plumber on standby.