Tips for future Landlord

Runnerpart2

Hi All

I am looking to get a bit of information about becoming a landlord, if there are any wise experienced landlords out there that can guide me in the right direction that would be great.

I only need some rough figures on what you must have to be a landlord and fees it would entail:

Landlord Insurance
Building Insurance
Maintenance/Repair Fees
Management Fees
EPC
Gas & electric Safety certificate


Also I am looking to see what it is you can claim against your tax on the rental income:

Repairs/Maintenance
Agency Fees
10% Wear and Tear

I think I have covered a few topics if anyone can elaborate or just give me a list with a rough % or price (where applicable) that would be great.

Thank you for you assistance in advance

Regards

Eric

G_M

Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

G_M

The figures you are looking for are so variable it's pointless.

You need to do a proper budget, based on the type/size/age of property you have in mind, the location, whether you'll self-manage or pay an agent, what target tenants you'll market for, etc.

Things like tax, all available on HMRC websites or elsewhere.

Start with the post above, follow the links, then follow the further links!

Lloyd90

Also I believe the 10% wear and tear allowance no longer exists and you can only claim actual expenses you have acquired.

Philuk

The biggest change from April 2017 is the massive reduction on mortgage interest payment deductibility, I honestly do not see how anyone can make money a profit in BTL anymore with the current 2-4% yield we see in most part of England.

Typhoon2000

Most small time landlords don't invest in BTL for income. Most probably top up from their own income,They buy for capital appreciation or to pay it off and own an asset. It's a cheaper way of buying a second home they will have benefit from in 20 years.

Bluebirdman_of_Alcathays

Philuk wrote: »

The biggest change from April 2017 is the massive reduction on mortgage interest payment deductibility, I honestly do not see how anyone can make money a profit in BTL anymore with the current 2-4% yield we see in most part of England.

Perhaps most people aren't highly geared on debt?

marksoton

Philuk wrote: »

The biggest change from April 2017 is the massive reduction on mortgage interest payment deductibility, I honestly do not see how anyone can make money a profit in BTL anymore with the current 2-4% yield we see in most part of England.

If you've only got a 2-4% yield you're clearly going wrong somewhere....

AlexMac

Runnerpart2 wrote: »

Hi All

I am looking to get a bit of information about becoming a landlord, if there are any wise experienced landlords out there that can guide me.....Eric

I'd say the best tip I can give you... is do the research, run the numbers ... and act decisively..

I assume that life got in the way in that that nothing much has happened since you last asked the same Q 18 months ago,
https://forums.moneysavingexpert.com/discussion/comment/67824921#Comment_67824921

so now is the time to "carpe diem"

aka "go for it!" I never regretted buying a little rental number; wish I'd done more, earlier!

Philuk

marksoton wrote: »

If you've only got a 2-4% yield you're clearly going wrong somewhere....

I don't want to hijack the thread, but yea that's crazy right? No problem as long as the price keep doubling every 7 years and your boiler is reliable.

Philuk

Bluebirdman_of_Alcathays wrote: »

Perhaps most people aren't highly geared on debt?

If you don't have any leverage, your return on equity will hardly be positive, that's the spread between your mortgage cost and your yield that cuts it. Well that s excluding capital appreciation which is the name of the game at the end.