Resources/advice for would-be landlords

[Kirstie]

I know there are a few people on here who are landlords. My family have just inherited a house and given the current market conditions we are considering renting it out. Obviously it's better to be well informed about renting out a house, the risks, the law, the options etc beforehand. So do any of you on here have any experience of renting out property, and if so, what would be your advice, or could you point to any useful resources or reading material.
Many thanks

 

[BearPear]

We inherited a house too that we rent out - it is in my name for tax reasons, Mr BP is a high-rate tax-payer. We bought out my brother-in-law's 50% share.

We used an agent initially, they vetted and credit-checked the tenants, but after 4 years with the same tenants we took it on ourselves (the agent did nothing for their fee except take the money, deduct their fee then send it to our account after it had sat in their account for a couple of weeks).

As the landlord, I have to make sure that there is a gas safety check every year, I have landlord insurance and I have taken over the deposit which is lodged with the TDS - the Tenancy Deposit Scheme. The gas check and the deposit scheme are legal requirements. We have been very lucky with our tenants, they are nice people who take care of the house and pay their rent on time. I guess using the agent initially helped to get this calibre of tenant, but we paid their comission for years without any further benefit to us. We are getting a return of about 8 - 10% after paying the mortgage etc. You can PM me if you want to know anything else!

 

[Hover Fly]

Get this:
http://www.communities.gov.uk/publications/housing/assuredassuredlandlords
I did it's free and it's very useful.

 

[Over The Hill]

I have three which are my pension. I went into this with no experiece about five years ago. It really is not too bad.

Whoever in the family is running the show needs to decide how hands on they are going to be.

I only use an agent to find a tentant (£250 is not too bad for this given they are advertising and doing the credit checks too). Best to do this via agent as if you do it direct you get all the no-hope cases that the agent will not touch calling you up.

I manage and run the whole thing from then on but if the person running it is not local then perhaps need to be less hands on. The less you do, the more the agent gets his hands on the money.

Rent it UNFURNISHED as all furniture has to meet fire standards. Most tenants want or have their own gear these days. Just rent with fitted kitchen, fridge freezer washing machine and cooker. If there is a lawn then I give them a lawn mower (dont include it as you would then need to get it safety checked), if not the lawn will not be cut as tenants will not buy a lawnmower to cut your lawn.

Get them to set up a standing order to pay the rent and arrange for the monthly statement to come to you a few days later.

Keep good records and claim all you can against the profit!

If the earnings are then split between members of the family they will each need to declare the earnings for tax. it is fairly simple and not much more than income less expenses = profit to go on the form.

 

[gavintc]

I know there are a few people on here who are landlords. My family have just inherited a house and given the current market conditions we are considering renting it out. Obviously it's better to be well informed about renting out a house, the risks, the law, the options etc beforehand. So do any of you on here have any experience of renting out property, and if so, what would be your advice, or could you point to any useful resources or reading material.
Many thanks

If your house is in Scotland there are some Scottish legal quirks with renting that you will need to be aware of.

 

[ASC1951]

Rent it UNFURNISHED as all furniture has to meet fire standards. Most tenants want or have their own gear these days. Just rent with fitted kitchen, fridge freezer washing machine and cooker.

Cooker, ok, but I wouldn't supply any other appliances. You are liable if there is anything wrong with them.

Whatever you do, don't overlook annual gas safety certificates for all gas appliances. A couple of years ago a London landlord with a couple of dozen properties was astonished to be given an immediate and substantial prison sentence for persuading herself that these were an expense she could do without.

And don't forget the Deposit Protection Regulations. http://www.depositpr...egislation.aspx

 

[ASC1951]

We inherited a house too that we rent out - it is in my name for tax reasons, Mr BP is a high-rate tax-payer.

Don't forget to put it in both names when you come to sell it. As it isn't your principal residence you get whacked for CGT on all the gain above the exemption in the year of sale, so you might as well get two lots of exemption. You can do that - legitimately - at the point of sale i.e. a contract from Mrs BP to Mrs + Mr BP then a sale by Mr and Mrs BP. You don't even need to register it in joint names first, although if I was the buyer's solicitor I would want to deduct the notional Land Registry fee and I would insist on an insolvency indemnity policy for half the value at the sellers' expense. Still a whole lot cheaper than tax on £10,100 or whatever the annual exemption will be then.

 

[Kirstie]

This is really invaluable - thanks everyone...