Accidental Landlord: help pleaseHi

G_M

You need to get a much better understanding of how the tax system works.

You also need a much better understanding of how finance generally of a BTL works.

I suspect you also need a much better understanding of how rental regulations and leglislation apply to you.

Read my sticky thread at the top. Then click on all the links within it and read all that as well.

Go to the library and borrow (free) a book on property invetment and/or how to let a property or similar.

You may be an 'accidental' landlord, but the law applies to you as much as to a 'professional' landlord.

And your tenants have the right to expect the same level of professional treatment from you as from any other landlord.

Finally - do not believe you can delegate your responsibilities to an agent. A (good) agent can help, can advise, can take some of the administrative burden, but ultimately you are the landlord and the buck stops with you.

Rosemary7391

I really second the recommendation that you look through G_M's sticky post. They explain things very well, and even if you leave the day to day management to an agent, you need to know what questions to ask to make sure everything is being done properly.

Star_Gazer wrote: »

My calculations:

Income of £11,990.40 (after agents fee) which would be taxed at £4,796.16 on 40% then minus mortgage of £8,705.28 = £1,511.04 DEFICIT

On top of this I have receipts totalling £1,500 (painting / skips / boiler service / repair work)

Please correct me on the above, as I said before I am lost with this...but it seems I set me make a loss!

Your calculation is incorrect because the mortgage repayment includes both interest (a cost) and capital repayment (more like moving money around - it's still there, available to you whenever you decide to sell the property assuming you sell for the same price you bought it at).

Crashy_Time

Rosemary7391 wrote: »

I really second the recommendation that you look through G_M's sticky post. They explain things very well, and even if you leave the day to day management to an agent, you need to know what questions to ask to make sure everything is being done properly.






Your calculation is incorrect because the mortgage repayment includes both interest (a cost) and capital repayment (more like moving money around - it's still there, available to you whenever you decide to sell the property assuming you sell for the same price you bought it at).

Big assumption, not very smart at the moment IMO.

wesleyad

Crashy_Time wrote: »

Big assumption, not very smart at the moment IMO.

Well even if you assume the worst (not that you would), the capital repayment is still there and would help reduce any negative equity. So it's still not lost money.