Help renting out my home where to start

kf1963

I have looked into renting out my home rent will be 1,200 per month less morgage 750,I'm wordering how much a month I will have to pay to the tax man as I will need to rent somewhere for my family PLEASE HELP IT'S A MINE FIELD

The_Drama_Llama

It is a minefield...and not just for the reasons you state. Your best bet is to start by joining a Landlord's Association, which will help you with issues like Landlord Tenant Law, dealing with Lettings Agents, voids (when you can't find tenants and you still have to pay the mortgage), the various safety certificates you have to have, how to deal with difficult/rogue tenants etc etc

The first thing you will need to do is stop calling it your 'home'...once someone is paying you rent, it becomes their home and your business.

Is there a good reason why you want to rent out the property, rather than selling it?

Good luck!

00ec25

Working out how much net profit you will make after tax is relatively straightforward, you deduct allowable costs from your gross rent and this gives you your net profit. You add your net profit to any other income you receive (eg employment earnings) and see if this takes you into the higher rate tax band – assuming you are on a standard personal allowance for 11/12 of 7,475 then, if the total of your income is <42.475, its 20% tax, obviously 40% tax if over
There is lots of guidance on directgov website on how to do the calculations (and simplified into to your other responsibilities as a LL)
However, it is not clear from your post what your motivation is? Do you need to have enough after tax profit from rental to cover the full cost of the new place you will be renting for your family to live in?
If your financial situation is that tight then renting out your old home is not perhaps the best thing to do, every LL will experience voids at some stage and if you are depending on a continual income stream from your rental business to cover monthly expenditure elsewhere then it is not guaranteed and you should review your financial planning as you will at some stage simultaneously face paying mortgage on your old house and rent on the new one – can you cover this?

kf1963

I lost 3 buyers last year and it cost me over a grand for not even selling the house i work from home and decided !!!!!!!!!!!! I need a change of job and thought I may be best to let this property out and rent another and use some of the profit from this house to do it I know I'm quite mad but if I dont make the change now will I ever .I'ts a lovely house but I would like to move to a village in the oundle area ......you really have got me thinking shouls i just try and sell again and go into rented until thr right little house comes along looking for changes all round really mmmmmmmmmmmmmmm:o

kf1963

Should read it back before I post as my typing not up to sratch sorry

G_M

All the info you need about letting here.... including tax links.