Rental Income Help

FreeBear

El_Torro said: You can also count various things as costs when calculating your profit. For example repairs and gas safety certificates.

Electrical installation safety report (EICR), EPC, etc. Don't forget you need to provide a "How to Rent" guide, place the deposit in one of the protection schemes, and depending on where you are in the country, register with the local council.

That pretty much eats up your "profit", and when interest rates rise again, you'll be losing money, and still have to pay tax on some of it.

dimbo61

I doubt you will have anything going into your pockets.
In fact I think you will need very deep pockets to help out with your new business venture.
10/12%+vat to a Lettings Agents, EICR at £150 If everything perfect, GSC at £ 80/100 each year, smoke, heat alarms, CO alarm, Inventory written or video £240, joining the NRLA, tenancy agreement, guarantor form, deposit registration and of course your Tax return.
Now as you earn £38,000 and the rent would be another £10,000 then you close to higher rate tax at 40%
If you went to a BTL mortgage lenders and asked them would they lend on this flat I think the computer would say NO!

All of this assumes that you get good tenants who pay for Rent !
Watch a few Slum Landlord and Nightmare Tenants to help you sleep at night 🌙

rnj

Insurance, safety certificates, repairs. Presumably you're managing it yourself so there will be the time/effort/risk of that. You could use an agent who would take 10-15%. Doesn't sound too appealing on a repayment mortgage.