Renting - the good, the bad, the ugly

hugheskevi

Would you be intending to sell the property after the end of a rental period? If so, remember that the tenants don't have to allow you access to show the property, and potential purchasers are likely to view tenants as undesirable as there is always a risk they don't move out at end of tenancy/haven't maintained the property well/could cause damage before moving out.

Given that, you may well want to plan to have a period after rental ends to clean/re-decorate as required and then start to show the house to buyers with vacant possession.

Remember to get permission from any mortgage provider, to get the necessary gas, boiler and electrical inspections in place, join a landlord association and get insurance. And thoroughly vet propsective tenants and get a professional inventory taken at check in - problem tenants can scent an amateur landlord from a long distance

Consider the tax implications of the rental income also (there are ways to avoid it, eg offset against mortgage payments, etc, but you need to plan and be aware of what you are doing). In short, treat this as a professional business decision.

I'd have a look at Landlordzone forums to get an idea of some of the possible problems of letting - do remember though that you are only viewing problem cases, and that most lettings are not problematic.

http://www.landlordzone.co.uk/forums/forumdisplay.php?f=3

N79

Jowo wrote: »

secondly, if a landlord accepts two months rent or more as deposit, there is a negative repercussion. Can never remember why, I think it involves inadvertently granting them extra rights and is classed as a premium. another poster will know the legal problem from taking a larger deposit.

1. More than 2 months rent (2 months rent would theoretically be OK).
2. Housing act specifically states that more than 2 months rent is a premium.
3. According to various statutes, tenancies with premiums give extra rights to Ts (eg the automatic right of assignement, protections etc).