Ducati Sporting Club UK > General > Idle Chat > any house rental experts??

[bradders]

Thinking of moving locally, but hate the thought of all that buy/sell/chain rubbish. So, I may look at renting my current home and take some equity as deposit on new......

pitfalls?
must do's & dont's
rental co or do yerself?
legislation I need to pay attention to?
best if furnished or un furnished?
insurance?

etc etc etc
any and all advice welcome

cheers

[Red-Duc]

Make sure you have a proper contract.

Take rent by direct debit, saves you going to bank and finding out cheque has bounced 1 week later.

Your insurance co needs to know the property is rented out as does your mortgage company if you have one.

rental co or do yerself? I personally would do it your self if you have time, but make sure you take refs and possibly credit check tenants.

legislation I need to pay attention to? You need to get a landlords certificate for any gas boilers,cookers that are in the property.

best if furnished or un furnished? I think it is better for tax purposes if furnished but I prefere unfurnished without white goods, Less hassle if appliances go wrong.

pitfalls? Can be a pain in the arse time wise and financialy if you have to evict, generally dont expect tenants to look after your house furniture like you do.

hope this is of some help

[Ozz]

Originally Posted by Red-Duc

best if furnished or un furnished? I think it is better for tax purposes if furnished but I prefere unfurnished without white goods, Less hassle if appliances go wrong.

Yes you get 10% of the rent as an expense (10% of rent less anything like rates, water if you still pay them).

Bear in mind also that the day you start renting you are treated as introducing the property into a business at market value normally so any new mortgage you get (even if for buying a new property for yourself) up to that value (including the existing mortgage of course) you can offset the interest against the rental income and hopefully reduce the profit for the tax year....

[bradders]

doing the sums, I think the interest only mortage amount would be the same as the rental income...so I dont think there will be profit!!

My rationalle is I get to keep the home and the equity which bulds in it, and will be paying lumop sums opf the capital each year, so in 5 years or so I can clear the mortgage on the new house with teh equity from this one...just sounds too easy!!

down the letting agents for me this weekend for advice I think....

[yeti]

Have got a draft tenants agreement of you need it. I rent one of my properties and, touch wood, haven't had any problems in last 4 years. That said I've just had the gas service done and I'll need a new boiler next year!! )-:

[bradders]

Originally Posted by yeti

Have got a draft tenants agreement of you need it. I rent one of my properties and, touch wood, haven't had any problems in last 4 years. That said I've just had the gas service done and I'll need a new boiler next year!! )-:

thanks mate, I'll keep that in mind...need to do some research now on insurance, tax, liabilty etc

[Ozz]

Originally Posted by bradders

thanks mate, I'll keep that in mind...need to do some research now on insurance, tax, liabilty etc

If you need any free tax advice pm me Bradders...

[Ray]

A mortgage on a let property usually attracts a higher rate of interest if you go that route.

The tax side can make yer eyes water as well.

A mate made £200,000 on a property on paper but just couldn't bring himself to sell it when he realised HMG were gonna trouser thick end of £80,000 of that £200,000

Plan B is now in operation needless to say.

It's not something to enter into lightly, your efforts might also bring IHT issues are well.

I'd deffo look carefully in to the tax side and how it may affect your particular circumstances.

Ray.

[Ozz]

Trick with CGT is to have lived in it for a while! That way you get the last 3 years of ownership treated as if you reside there and therefore tax free....

[CK]

Bradders, over this last summer I worked for a national chain of letting agents - in the 'customer care' - this meant for snagging/extending leases/evictions/inspections/inventories/GSC's/damages etc etc.

Well - all I can tell you is that it opened my eyes big time

C, not an expert BUT now knowing what to try & avoid!