How to start a letting company

luckyseven_3

Dear moneysavers,
I have been renting my house through estate agents for the last 3 years, but am really sick of them now. Although I have been paying a substantial amount of my income on the letting agent, still the service I gat is really crap. On top of that they are not bothered on reclaiming the damages caused by the tenants. So, I am thinking of letting the property by forming my own company. What do other moneysavers think?. Any advice re. this would be really valuable. Could someone suggest any sources/ websites/ books to get some more ideas???
Thanks in advance

chappers

You can already do this anyway offsetting any costs involved with letting your property eg.advertising, credit checking etc. a decent book on buy-to-let will give you all the info.

theGrinch

if you wish to let your own property then you can go ahead without a company and just complete your self assessment tax return accordingly.

if you have it a success and enjoy it then think about offering a service via a company to other landlords rather than using them as "guinea pigs"

walk before you run

luckyseven_3

Sorry guys, I haven't made my point clear. I don't want to start a company to do a letting business i.e to let other people's properties. No, I am not that greedy, just p****d off with the letting agent and think that they are ripping me off. Well.. that's their job ....
It's just to let my own house. Yes, may be I should read a book on buy to let. Any resonable suggestions?
Little bit more about my situation... . I had to leave my house as a result of a sudden change of circumstances. Now I am sytaying in a rented place, but paying my mortgage for the previous house. It's costly.. as anyone would expect. More so , the rent doesn't even cover half of my mortgage.
Now, another question for a fellow money saving expert. Will I have to pay income tax for for the rental income as well?. Sorry to ask this stupid question. But I am a higher rate tax payer.

theGrinch

yes you will pay tax on income, but there are certain allowables you can claim. if you wish to do it by the book, then you will need to inform your mortgage company.

I suggest you join a landlords association, which will be helpful. just google. provided you dont live more than say an hour away, then self management is a sensible option to deliver a better service and save fees.

hearts

luckyseven wrote: »

Sorry guys, I haven't made my point clear. I don't want to start a company to do a letting business i.e to let other people's properties. No, I am not that greedy, just p****d off with the letting agent and think that they are ripping me off. Well.. that's their job ....
It's just to let my own house. Yes, may be I should read a book on buy to let. Any resonable suggestions?
Little bit more about my situation... . I had to leave my house as a result of a sudden change of circumstances. Now I am sytaying in a rented place, but paying my mortgage for the previous house. It's costly.. as anyone would expect. More so , the rent doesn't even cover half of my mortgage.
Now, another question for a fellow money saving expert. Will I have to pay income tax for for the rental income as well?. Sorry to ask this stupid question. But I am a higher rate tax payer.

Let me get this right...you are renting out a house for less than you pay in mortage. Then you are living in a property and paying rent for this.
Firstly would it not just be cheaper to live in the one you rent out? Alternatively is selling it not an option?
..anyway apart from that. It's easy to rent out your own property you don't need a company to do it. Just find good tenants and off you go. Obviously find out about the rules and regulations first.
TAX. If the mortgage is a repayment then you would probably be better to change it to Interest Only. Tax is NOT payable on the INTEREST part of the mortgage. You would only pay tax on any PROFIT you made. You are not making a profit so no tax to pay on the income.