Being a landlord

Durban

What is the reason for renting it out rather than selling?

babyblade41

From an ex landlord with a mixed portfolio over many years I would advise against looking at your figures , at the very best you'd break even or maybe venture into the black possibly if everything was perfect 

Even the best tenants can go rogue , I had one . After being pretty ok for 10 years a change of partner and everything went Pete Tong, no mortgage but it took   a very longtime to get possession well before covid, then the expense of all the repairs .

Ex Landlord being the operative word and I had quite a few of both residential and industrial 

I do have on property I rent out only because they are long term , both professional and have added value at there own expense, it is their home and they and I treat it as such . If they want to buy at some point  then that's fine but if they leave then it will be put up for sale . 

bert4567

Durban said:

What is the reason for renting it out rather than selling?

There's quite a lot - basically I'm not really into where I'm living, and I'm potentially going to fall out with my stairs neighbour over a balcony extension.  So wanted to try living in another area to see if like it before trying to buy again - but still having the flat ticking along - its London so was hoping for a slight increase.  But also i may be going to work abroad from November or early next year and that would be for at least a year.  I've had a lot of people say just rent it out, as its an investment - only one or two are currently landlords - i get where they are coming from, but listening to people on here I'm getting a more balanced view.  My other option i suppose is sell and bank the cash for a year or two before maybe looking at buying again - only thing is I'm 46 and I'm just thinking about the future as well - I'm actually wondering if its a good idea to speak to a financial advisor, my aim is to try and be mortgage free by 60 but id hopefully be living in the west country in a place about 300k.

Durban

So it sounds as though you are not actually wanting to make any proper profit out of it but rather to hang onto it before you decide exactly what to do?  So as long as it can " wash its face " you'd be happy?

If you do decide to rent it out , make sure that the tenant is credit / reference checked right up to rent guarantee insurance standard and even then get a guarantor. Meet the tenant , take out rent guarantee insurance, although if you do , read the terms and conditions very carefully as there are a lot of weasel words in these things to stop them from paying out.

Even then , there are no guarantees that it all won't go wrong but if you are set on renting it out , at least do the above.

bert4567

yeah not concerned about big profits just mainly tick over and yeah your spot on, until i work out whats next

AdrianC

bert4567 said:

Was actually looking at this - but to be honest everyting everyone else has mentioned this probably doesnt make alot of differance

Is that a BtL mortgage?

AdrianC

Durban said:

So it sounds as though you are not actually wanting to make any proper profit out of it but rather to hang onto it before you decide exactly what to do?  So as long as it can " wash its face " you'd be happy?

Which is lovely until something goes pear-shaped and you don't have any profits to offset the sudden expense against.

bert4567

AdrianC said:

bert4567 said:

Was actually looking at this - but to be honest everyting everyone else has mentioned this probably doesnt make alot of differance

Is that a BtL mortgage?

yeah pretty sure i clicked the right bits

bert4567

I would have access to about 10k as an emergency fund but I'm not sure if that's enough - seems to be a lot variables

Markneath

Are you a higher rate tax payer, if so it’s probably not worth you doing BTL  outside a LTD company. ( read up on the new BTL tax rules)

I do BTL myself and yes it does generate an additional income but its no where near as much as people seem to think. 

If the property ever increases in value you have got the option to take equity out and this has generated a lot more income than the rent itself. I would get a pretty heavy capital gains tax if I ever sold though so this needs considering when taking equity out.