Anyone here a Landlord?

[Mat Jackson]

Mike,

My wife and I rent out a couple of houses, and did a lot of research into the ins and outs of it.  Being far to honest, as we are, we made sure we did everything right so spent a lot of time dotting the i's and crossing the t's.

I would deffinately recomend renting a house out, although its not exactly easy money.  There is quite a bit of work and you don`t make as much money as some people think.

There are a lot of was to mitigate risk, increase income and make the property more lataable.  there are also ways or managing tax honestly, but not paying too much.

If you (or your brother) wants any advice, info or even just re-assurance feel free to PM me.

Regards,

Mat

[chrisbin]

If your brother lets the property, when he comes to sell the property he will be liable to pay capital gains tax on the increased value of the property since he owned it. This is because as soon as he starts letting it out it is no longer his primary principal residence (You do not have to pay capital gains tax on your PPR). There are many different rules concerning CGT but with the tax at about 40% it is worth looking into it.

If he has owned the property for a long time it may be better to sell while it is his PPR and then use the profit as a deposit on another house(s) with a buy to let mortgage.

Alternatively, b4 you sell the rental property, sell your residence, move in, then its become your primary residence.......

Note: This is not a professional opinion/advice, just something that I have heard someone has done........

[Bananaman]

i had a problem with getting someone out of one of my flats i had all the insurances you can have i use a good agent but the b******* still had rights so i took the bl**** front door of that gave him two choices

1.leave

2.get permision from the landlord to put a new door on at tennats expence

he left within two hours    

I like your style......    

Cheaky BarStuards      

[nlash]

Before you even think about giving your keys to anyone and letting them in your house you MUST get a gas safety certificate for all gas appliances in the building. (Its not just the central heating that needs a certificate, also the cooker if gas and the gas meter) Also check other appliances that could cause injury to the prospective tenant like electric showers etc. (protect anything mains with an RCD) A lawsuit from a tenant regarding any of the above and believe me the inland revenue will be the least of your worries. In fact, check everything that could cause potential injury to your tenant.

Make sure you have adequate buildings insurance too and contents insurance for items you intend to leave with the property.

SWMBO is a property manager for a lettings agent and together we have a few properties that we rent out too. If you need any questions answered by a guru on the subject (the missus) then drop me an email.

[westyfield]

Hello Mike, what area are you in. Here in Derby the Local Authority housing agency actually give free advice out not only for tenants but also for landlords. We often use them when we have a "difficult" tenant so it may be worth a phone call .

By difficult I mean "won't pay" of course. Legally, even if you let without any written agreement, a let is deemed to be a "Shorthold Tenancy". This means that you can legally regain your property after 6 months by giving 2 months notice.

Beware of what I call "professional tenants". They come with all the right answers, all the spot on credentials and all the cash up front for deposits and rent making you believe you have found the perfect tenant.

This is the only money you ever receive. They start to complain within days and know that the system is so heavily weighed in their favour that it can take 6 months and big court costs to get them out... by which time they have lived 6 months for the cost of two and have clocked up big utility debts before disappearing.

I have been caught out by these types twice now and no doubt will again.... But don't let me put you off! There are genuine people out there, I think.

This last month I let a lovely cottage out in Matlock to a well dressed/spoken "doctor".. the new GP for the area, he said!

All checks OK, money in cash up front. This week the Police are after him for using the place as a front to sell stolen Mercs and Bm's! The Doctor has long gone of course. So if you want a nice two bed stone cottage, FGCH, DG, beams,....

[DarrenRav]

My Missus could write you a book about this so I won't bore you with stuff already mentioned, that said I would recommend you that you get your tenant to pay weekly even if going through an agent.  This way when they start to default you know the following week that you may need to draw up the section 21.