Letting a property inherited

Seekingfinancialhelp

Hi, ive recently inherited a small house which im considering letting out. I work full time so would use a lettings company to mange the process.

If I decide to sell say in a couple of years time, would I need to pay tax on the sale? It was my father's home so wouldn't pay inheritance tax due to the value etc if I sold it right now.

Also, any tips regarding offsetting the tax I would pay on the rent earned would be helpful.

Many thanks

Keep_pedalling

My tip would be to sell now unless you have previous experience of being a landlord. 

Seekingfinancialhelp

Keep_pedalling said:

My tip would be to sell now unless you have previous experience of being a landlord. 

Can I ask why please? 

Seekingfinancialhelp

Keep_pedalling said:

My tip would be to sell now unless you have previous experience of being a landlord. 

Ive had the property on the market for several months now, and reduced the asking price by £40k from what two estate agents valued it at. Its becoming a financial burden as I pay full council tax. The agent has advised that the property in this particular area isn't selling well and hasn't been for some months. I dont really want to have another winter without someone living in it, so was considering letting it until maybe the market picked up.

theartfullodger

Seekingfinancialhelp said:

Keep_pedalling said:

My tip would be to sell now unless you have previous experience of being a landlord. 

Can I ask why please? 

Because the alternative (likely ignorance) will probably be painful and expensive.

I started as a landlord in 2000 with no real knowledge.  Of my stupidity!  Oh the hubris!  Expensive ,painful, complicated, long drawn out problems.  Don't make my mistake, please.

user1977

What's the market like for rentals? Is the property currently suitable/legal for letting out? How easily can you afford the risks of voids/arrears/repairs/tenants not leaving when you'd like them to etc? 

Seekingfinancialhelp

user1977 said:

What's the market like for rentals? Is the property currently suitable/legal for letting out? How easily can you afford the risks of voids/arrears/repairs/tenants not leaving when you'd like them to etc? 

Apparently rentals fly out, the property is modern and in tip top condition. There is no mortgage on it as it was my late father's home. The agent mentioned a service they offer where they cover the rent if someone didn't pay, clearly at an additional premium but said they deal with the legal issues so its in their best interest to tackle non payers ASAP.

Stubod

Don't become a single property landlord, it is really not worth the hassle. 

Sell it and invest the money, or put it into a pension. IMHO.

Brie

There's a lot of regulations and it seems that more are in the pipeline for landlords.  Hence the others cautioning you.  If you have someone dealing with all of that then there's less pressure but you will have the CGT to pay at some future time as you've never lived in the property.  Whether you would have that now due to just inheriting I don't know.  Seems like something that you need to log out all on a spreadsheet but maybe that's just my reaction.

user1977

Seekingfinancialhelp said:

user1977 said:

What's the market like for rentals? Is the property currently suitable/legal for letting out? How easily can you afford the risks of voids/arrears/repairs/tenants not leaving when you'd like them to etc? 

The agent mentioned a service they offer where they cover the rent if someone didn't pay, clearly at an additional premium but said they deal with the legal issues so its in their best interest to tackle non payers ASAP.

I would carefully read the smallprint around any such "guarantees". The agents may take on much of the admin (obviously, at a cost) but ultimately you bear the risk and the legal liability.

twopenny

The property will have to be inspected, utilities need certificates and appliances.
It's not just payment but potential damage or repair.
Then insurance to cover.
It's not just a case of finding a tenant. There is outlay before you can let and organising these trades and such.
Short term let may not be as popular as long term.

Properties around here are not selling. It's the wrong time of year and general rising prices. Have you any good friends who will view the property as a potential buyer and be honest?
I've watched a lot of properties stick because they have a problem of some sort that owners or probate can't or won't acknowledge.