Renting my house out

Onemanandtwolittleladies

From your sums I would really warn against it.

In my experience, being a landlord is a huge responsibility and you’re effectively running a side business. When you’re working full time and have other commitments it’s a nightmare, especially when it’s likely to be costing you money every month. Believe me, on your sums, you will not see any money.

You’re also banking on the house price rising. What if it’s stays stagnant or drops?

AdrianC

Onemanandtwolittleladies wrote: »

In my experience, being a landlord is a huge responsibility and you’re effectively running a side business.

There's no "effectively". That's exactly what you're doing.

00ec25

jamie_128 wrote: »

2-As i understand, by 2020, interest payments on your mortgage are no longer tax deductable.

your understanding is wrong

you also don't say what your employment income is and therefore what your total taxable income, including the profit from the property will be. Tax rates are based on total income, not figures in isolation. I note you say you will still be basic rate, without figures I'm not willing to believe that you have done your sums correctly

if you remain a basic rate taxpayer then you will be given a 20% tax credit on the interest. In other words, no different to how it is now, but if your rental profit pushes you into the higher rate band you will indeed lose some (not all) of the interest deduction

read:
https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies

[Deleted User]

If you use an LA for vetting, they will have a formula for minimum wage that a tenant must earn to rent your place, do credit checks (bad tenants quite often don't have CCJ's because they cost the LL more money with no real prospect of getting anything back), get a previous LL reference (LL could easily write a positive reference because then they get rid of a bad non paying tenent they can't wait to see the back of), may get employers reference (could be a friend.

You are trying to make this as easy as possible, and its not easy to be an effective low risk landlord. Far 'easier' to do what you can to avoid a bad tenant, but not easy to do. Visit the tenant in the place they live in to see if they take care of a property, look on social media to get hints as to personality and lifestyle they will not reveal to an LA etc etc. Personally, I'd ask for bank statements. But I know that some people regard that as an invasion of their privacy, but well, if I was renting a property I'd want to know what a tenant is not willing to tell me.

Insurance is not the easy option as has already been explained. Neither is an LA if you want to be thorough,

As has been explained, if you are not making a lot of 'profit' .., how many years will you have to rent to make the money lost in SDLT (if nothing goes wrong and you get a good tenant). Most tenant aren't like this, but how to avoid the one who is? If you do get one, you can lose so much. Particularly if you can't afford to cover the mortgage if you don't get rent income.

I'd try and find another way. Like, for now, consider lodgers as has already been suggested. Get an idea how it works, how to select good prospects.

Smodlet

How many LLs have posted on this thread already? The OP has not listened to a word any have said. Let him go his own sweet way and learn the hard way; he clearly knows best.

hazyjo

Not only should there be the warning sticker for newbies (currently saying 'MSE requests you give new poters a chance! Please be especially nice'), the same should be expected in reverse.

jamie_128's reply was way over that line. Absolutely no need. From your posts, I agree with smodlet that it did sound like you were going ahead anyway. We're not psychic so maybe just correct people if they've misinterpreted, not swear and insult them.

I do wonder if this is 'our old friend' who has talked about renting out properties before who always gets banned cos he turns nasty and insults peoples :think:

Smodlet

Thank you, hazyjo, you are a lady. Whoever reported him/her, it was not me; I could not be bothered but thanks anyway.

hazyjo

Smodlet wrote: »

Thank you, hazyjo, you are a lady. Whoever reported him/her, it was not me; I could not be bothered but thanks anyway.

I usually have no hesitation in hitting it, but wasn't me this time as also didn't think they were worth the effort.

Thanks. I try (although have danced on enough bars to not quite be that much of a lady lol)

Smodlet

Well good for you, darlin'! You live only once... unless you believe otherwise, of course.