Renting out house

[Julie74d]

Me and hubby are looking at renting out our house and moving back with my mom to get rid of a few debts. Just wondering if anyone else has done this and if you could give any advice as I know nothing about being a landlord!

 

[caz81]

no advice but we are moving back to midlands soon & will be looking for somewhere to rent so if you do let me know!!!

 

[wannabemamma]

I rent out my flat, and have done since I moved in with the husband. WHat do you need to know?

I rented it to friends initially and just did it privately, but when I went on the open market I used a letting agent. I haven't taken them on as a managed let though, I objected to the 13% per month fee they wanted just to field calls from the tenants when I would have had to arrange work etc. I just used their tenant find service, and paid a fair amount for it. Now I deal with the tenants direct if there is maintenance etc. They went from a 6-month to a 12-month contract the other month (which is great!) and that went through the agent as they arrange the contract etc and then send me a copy. They also take the deposit etc and put it with the official deposit holding people.

 

[Julie74d]

I rent out my flat, and have done since I moved in with the husband. WHat do you need to know?

I rented it to friends initially and just did it privately, but when I went on the open market I used a letting agent. I haven't taken them on as a managed let though, I objected to the 13% per month fee they wanted just to field calls from the tenants when I would have had to arrange work etc. I just used their tenant find service, and paid a fair amount for it. Now I deal with the tenants direct if there is maintenance etc. They went from a 6-month to a 12-month contract the other month (which is great!) and that went through the agent as they arrange the contract etc and then send me a copy. They also take the deposit etc and put it with the official deposit holding people.

Did you rent out a furnished flat and do you charge more rent for that? also did your flat have a new kitchen and bathroom and did you have to do repairs etc before renting out. thanks

 

[Foogirl]

I did this with a flat I owned years ago. There are some things you need to be aware of.

Check with your Local Authority if they require you to register as a Landlord.

You need to get a gas and electricity safety certificate for your central heating / electrical installation.

You need to inform your mortgage provider that you intend to let your property.

You will be required to declare any earnings for tax purposes. There is an allowance for the money you can make before tax applies - and it is only the pure profit so you can deduct your running costs / mortgage etc. Check with HMRC for the details. Also be aware if you don't live in the property for a certain length of time, then sell it, you will be liable for Capital gains tax. I think it is seven years.

You need to let your insurance company know. Although your building's insurance should be ok, you will need a landlords policy for any contents. And any tenants will need their own insurance to cover their own belongings.

Consider using a letting agency. They will ensure that rent is collected properly and will keep an eye on the place with regular checks. Most offer differing levels of service depending on your requirements. I think I paid about 8% of the monthly rental. Certainly if you are moving somewhere far from the property it is very useful. Also they will have standard leases which they can use and they should vet potential tenants properly.

If you go it alone, ask for references and check them. Take a security deposit and a months rent up front. I put the deposit in a savings account which had a months notice period on it. That way it was always there when the tenant moved out.

Take anything you don't want to lose, out of the property.

Ensure all utility bills are in the name of the tenant. That way they can't come chasing you if they don't pay. I did a standard letter, which when the tenant moved in, I got them to handwrite their name on and sign at the bottom, and I posted it myself.

If the property sits empty for a period of time, you will be entitled to a reduction on council tax.

There are probably a million other things, but these are what springs to mind.

 

[RJ01]

You also need to get an EPC (Energy performance certificate) they cost around £50.

 

[RJ01]

I did this with a flat I owned years ago. There are some things you need to be aware of.

Check with your Local Authority if they require you to register as a Landlord.

You need to get a gas and electricity safety certificate for your central heating / electrical installation.

You need to inform your mortgage provider that you intend to let your property.

You will be required to declare any earnings for tax purposes. There is an allowance for the money you can make before tax applies - and it is only the pure profit so you can deduct your running costs / mortgage etc. Check with HMRC for the details. Also be aware if you don't live in the property for a certain length of time, then sell it, you will be liable for Capital gains tax. I think it is seven years.

You need to let your insurance company know. Although your building's insurance should be ok, you will need a landlords policy for any contents. And any tenants will need their own insurance to cover their own belongings.

Consider using a letting agency. They will ensure that rent is collected properly and will keep an eye on the place with regular checks. Most offer differing levels of service depending on your requirements. I think I paid about 8% of the monthly rental. Certainly if you are moving somewhere far from the property it is very useful. Also they will have standard leases which they can use and they should vet potential tenants properly.

If you go it alone, ask for references and check them. Take a security deposit and a months rent up front. I put the deposit in a savings account which had a months notice period on it. That way it was always there when the tenant moved out.

Take anything you don't want to lose, out of the property.

Ensure all utility bills are in the name of the tenant. That way they can't come chasing you if they don't pay. I did a standard letter, which when the tenant moved in, I got them to handwrite their name on and sign at the bottom, and I posted it myself.

If the property sits empty for a period of time, you will be entitled to a reduction on council tax.

There are probably a million other things, but these are what springs to mind.

Just to correct this hope you don't mind, you can only deduct mortgage interest against the income not the mortgage payments and it's 3 years for captigal gains.

 

[Foogirl]

Just to correct this hope you don't mind, you can only deduct mortgage interest against the income not the mortgage payments and it's 3 years for captigal gains.

Ahh, this has changed then. I rented out up until about ten years ago.

 

[lesleyann]

I did this with a flat I owned years ago. There are some things you need to be aware of.

Check with your Local Authority if they require you to register as a Landlord.

You need to get a gas and electricity safety certificate for your central heating / electrical installation.

You need to inform your mortgage provider that you intend to let your property.

You will be required to declare any earnings for tax purposes. There is an allowance for the money you can make before tax applies - and it is only the pure profit so you can deduct your running costs / mortgage etc. Check with HMRC for the details. Also be aware if you don't live in the property for a certain length of time, then sell it, you will be liable for Capital gains tax. I think it is seven years.

You need to let your insurance company know. Although your building's insurance should be ok, you will need a landlords policy for any contents. And any tenants will need their own insurance to cover their own belongings.

Consider using a letting agency. They will ensure that rent is collected properly and will keep an eye on the place with regular checks. Most offer differing levels of service depending on your requirements. I think I paid about 8% of the monthly rental. Certainly if you are moving somewhere far from the property it is very useful. Also they will have standard leases which they can use and they should vet potential tenants properly.

If you go it alone, ask for references and check them. Take a security deposit and a months rent up front. I put the deposit in a savings account which had a months notice period on it. That way it was always there when the tenant moved out.

Take anything you don't want to lose, out of the property.

Ensure all utility bills are in the name of the tenant. That way they can't come chasing you if they don't pay. I did a standard letter, which when the tenant moved in, I got them to handwrite their name on and sign at the bottom, and I posted it myself.

If the property sits empty for a period of time, you will be entitled to a reduction on council tax.

There are probably a million other things, but these are what springs to mind.

also all propertys let in england with a year rent of under 25k the deposit HAS to be put into a protectiong thing other wise you could not evict with a s.b21 (somthign liek that) and teh tenant can claim up to 3x the deposit back

only said this since your propertys where is scotland and this new rule was brought in, in 2007 i think

 

[Foogirl]

also all propertys let in england with a year rent of under 25k the deposit HAS to be put into a protectiong thing other wise you could not evict with a s.b21 (somthign liek that) and teh tenant can claim up to 3x the deposit back

only said this since your propertys where is scotland and this new rule was brought in, in 2007 i think

That and - my list is by no means exhaustive!

 

[wannabemamma]

Sorry, I forgot to come back to the thread! Most things have been said, but in answer to your questions:
- I didn't put a new kitchen/bathroom in because the ones in there were nice.
- I didn't redecorate, as I had only moved in 6 months or so before and done it all then! It isn't neutral, but the estate agent said that that made it appealling.
- It is furnished (sofas, beds, dinig table/shairs, white goods etc) and that is reflected in the price.
- If you are leaving anything electrical other than white goods either 'gift' them to the tenant so that they have to replace them when they break (otherwise you are responsible) or make sure you have their wiring etc checked and stickered. For example, my tenants asked about the TV and Sky box that were there when they looked round, I offered them to them on this basis (either a gift or they pay for wiring check as they weren't in contract) and they went for sorting them themselves.
- Make sure you are clear on things like redecorating, for example my tenants recently asked if they could paint the kitchen to neaten it up, we said yes and offered to buy paint etc. They said not to worry they'd get it themselves.
- Keep good, open lines of communication going, it really helps. I haven't met my tenants, but my husband has.

Erm, that's it that hasn't been mentioned!