new to renting out a property

jmhgibson123

hi i know there is some very helpful people on this site and wondered if any one could advise me please here is the situation.
my other half has a house but is going to move in with me so we are doing the sensible thing and renting his house out for a few years.
we are asking £500 a month for the rent and just over half of that will pay the mortgage. so its not all earnings do we have to declare this to mr tax man or is it only after you earn a certain amount from the house. i have been trying to research all the stuff on landlord zone and my head is spinning now with so much information so anyone that could advise i thank you a milion times over in advance
:j

PasturesNew

You will have to declare all the income, in a Tax Return.

But there are deductibles.

You are taxed on what is left over after things like:
- The interest only on the mortgage
- Any lettings agents fees/advertising fees
- Gas safety check/similar
- Buildings insurance
- Other landlord types of insurances

There are other things, such as 10% wear/tear if it's furnished.

So he will pay tax at the appropriate rate on what's left over.

jmhgibson123

thank you very much for the info you are most helpful
im sure there wont be much left for tax purposes its just a easy option in case things dont work out between us he may not like living with a crazy spendaholic with a demon child
again thanks for your help

PasturesNew

jmhgibson123 wrote: »

he may not like living with a crazy spendaholic with a demon child

I know I wouldn't. But he can't just move out of yours when he fancies either.

There are specific, set and legal procedures to give notice to tenants. He would need to be abreast of his responsibilities to the tenants and his options should things sour.

Here is my current short list of how things can go wrong:
1] http://forums.moneysavingexpert.com/showthread.html?t=782197
2] http://forums.moneysavingexpert.com/showthread.html?t=619891
3] http://www.theargus.co.uk/search/display.var.1985710.0.mum_trashes_325_000_home.php

There's nowt so queer as folk... except tenants

jmhgibson123

i was only kidding but hopefully i wont be booting him out and i'm sure id put up with him for as long as the tenancy runs

jmhgibson123

oh lordy i have just checked out your links what a nightmare this renting out lark is just hope we get a good tennant
cheers

tbs624

You’d need to check with the mortgagor of your partner’s property before letting it out: they'll probably require payment of a consent fee or possibly a switch to a different sort of mortgage.

You mention that you’ve already look at LLZone - here’s another couple of links for you:

http://www.hse.gov.uk/gas/domestic/faqlandlord.htm
http://www.direct.gov.uk/en/HomeAndC...Home/index.htm

And here for tax advice:
http://www.hmrc.gov.uk/worksheets/sa105notes.pdf

If you follow the advice on LL Zone on getting tenants properly checked out, you will greatly enhance the likelihood of getting a good one: the other side to this of course is that a good LL will find it easier to keep those good tenants…