Are you a landlord? How do you find it?

[RainCloudsInTheSky]

We may have an opportunity to be a landlord but we are cautious about it. Does it take up much of your time? We would probably pay for the fully managed option so hoping it wouldn’t take up too much?

we’ve had a chat with estate agents and feel like we are understanding what is expected. Insurance has been recommended and I am yet to see what the cost of this may be.

would you recommend? Or wouldn’t do again? Interested in anything

All those epc things have been scrapped! By Rishi this week 😬

You're getting g some shocking advice on here.

Yes there are coats involved, but you will have to do a self assessment tax return every year and most expenses come off your tax bill.

Epc website has some great advice and a quick google will set you right

I imagine Labour would reverse it pretty quickly if they got in.

It's not a good time to be a LL other than rental demand is sky-high. But that's about it.

Ha @areyouhavinglaugh 'most expenses' - yes, except for the largest - your mortgage interest.

Yes there are coats involved, but you will have to do a self assessment tax return every year and most expenses come off your tax bill.

We have to fill out tax returns anyway, and we do get most of the expenses off, if not all.

I'm a landlord and to be honest it's been no bother now I'm all set up. I manage it myself, not through an agent. I was careful in picking my tenant. I leave her alone and she leaves me alone, apart from when something needs repairing.

Things to consider/ pay for:

• Yearly gas safe check
• Valid EPC certificate
• EICR (electrical) check every 5 years
• Working smoke and CO alarms
• Insurance

Just be organised and have a file with everything in. Keep all receipts to claim the tax back when you do your tax return.

You get some expenses but not all. Also you need to be able to cover the cost for quite a while before you get any tax rebates.
I don't regret doing it but it isn't the money spinner that some imagine.

@TeenagersAngst I don't have a mortgage, and by the sounds of it neither does op .

This is useful and will tell you everything you should know.

Rented housing sector - GOV.UK (www.gov.uk)

You don't tax rebates, it just comes off your profits when doing self assessment 😀

Refurbishment including all upgrades of carpets, bathrooms, kitchens,
Gas safety cert
Epc cert
Electrical cert
Estate agent fees
Insurance

All included in "expenses" on your tax return

Yes, take into account the accountant’s fees for SA and the fact that you will have to pay a wedge of tax separately from PAYE. We also have a service contract on the boiler which is deductible, as is the insurance. You can allow a small margin for calls, stationery etc.

The plumbers etc recommended by our agents tend to cost a bit more - captive market I suppose. So even simple jobs like a blocked drain can end up eating into profits.

There is no real money in it day to day tbh. We tend to save most of the rent in a sinking fund for any repairs needed.

 you are right @areyouhavinglaugh
That is the USA system I'm in now. In my defense we had accountants who completed our tax returns.
But the basic point that you need to have the cash up front for the work still stands.
Even if your tax paid is lower than if you yourself were living in the house you have to quickly cover some large expenses sometimes.

I've just sold mine after renting it out for 10 years. Couldn't feel more relieved it's gone tbh.

The unexpected costs seemed to always come at the worst time (washing machine or boiler breaking days before Xmas) and I always found a tenanted property needed much more maintenance than any of my own homes have done.

Landlord insurance was only £22 per month. But then there are other annual costs as others have said such as the electrical safety checks. I had the fully managed option with an agent and their fee was 9% plus VAT.

Only had bad tenants once - they left the country and sublet my flat to other people I knew nothing about. Took some time to get them out but fortunately they didn't damage the property. Otherwise the only issue was late rent payments a few times- if you need the money it can be quite anxiety provoking when you suddenly don't know if they'll pay a week later or never again...

Self assessment in the uk is so easy and straight forward! Hmrc calculate everything and are fantastic. Nothing like the states.

Big expenses are part and parcel of owning a property. But In 17 years these have been my largest costs

New boiler 800
Bathroom 7k
Kitchen 5k
Carpets 2k

We're landlords of 2 properties (both previous homes we owned and lived in). We have both fully managed by the letting agent and (touch wood) have had very few issues over the 10 years we've been letting out the properties.

Yes, it eats into your rental income, but imo you can't put a value on the peace of mind it gives you. One rental is close to where we live 'up north', the other is my DH's old family home in west London. Ironically, we've had brilliant tenants in that one, the one closer to us hasn't been quite as trouble-free, but nothing major.

We'll continue to rent out for as long as we're able - it's our pension pot for when the time comes.

We rented our house out for thee years when DH took a job abroad and it was a disaster. We didn't quite break even after mortgage costs, maintenance and agent fees but we were okay with that, what we weren't so okay with though was the tenants refusing to leave after being given notice.

They knew the time period we were planning to be away for, the deal was that they'd stay for the three years then buy a house in the locale, so the notice wasn't a shock to them, but us being made homeless with all our belongings was certainly a shock to us.

It took seven months to get them out and the house was trashed. Never again. I don't have the constitution for those levels of stress.

Check out capital gains tax if you do sell in the future too.

DH became an 'accidental landlord' of his parents house and a small shop with flat above he inherited from them. There were a couple of ok house tenants, one bad and one awful compounded by useless agent, so he sold after his DM died. The shop and flat have become a bloody nightmare for various reasons (threats of violence from former tenant, parting gift of fish left under the cooker...) ...he's getting shot of that now, seriously reckon it's taken years off his life.

It's maybe ok if you have property of an appropriate type near where you live and you have the skills/contacts to manage them yourself. But the final straw for many landlords is likely to be the prospect of the end of Section 21 and being stuck with a bad tenant.

I can help you out. It's the price. It's always the price. If you dropped the price to £1 do you think it would sell? Now we're getting somewhere. Next question, do you think theres a price point between £1 and your current asking price it will sell for? You're welcome.

I have 10 btl houses which I manage myself and I don't find it too hard. On an average week it might take up 1 hour. Obviously it takes longer in the week new tenants move in. I let the EA show the property and vet the prospective tenants. I choose from a list of those that apply to live in the house. I photograph every room and print out photos which the tenants sign to state this was the condition of the house when they moved in. Print off How to Rent for tenants and make them sign to say they received it. Take gas and electricity readings and get tenants to sign to say reading on X day they took on lease. Put their deposit in the deposit scheme. I make them a pack with it all in, including the rental contract, How to Rent, Gas and Electricity readings, photos of each room, copy of carpet cleaning and cooker cleaning invoices, gas certificate, electricity certificate, EPC and my details. I have a handy man who does any plumbing and small carpentry jobs. I try to get any repairs and maintenance dealt with very quickly. The same gas engineer does all gas safety certificates and the same electrician, any electrical work. Because I put all my work their way they prioritise my tenants. Most of my tenants have been with me for years. I just renew their contract each year.

I suspect you think you’re smart. I don’t want to ruin your imaginised world so I wont. But you’re not smart. Or clever. Or business minded. Or any of the things you’ve convinced yourself you are. HTH.

How does running a HMO work please? Is there much turnaround? Did you need to do much to the property?

We have two properties. Be prepared for lots to go wrong. Stuff you might put up with in your own home tenants won't.

You also need to have funds to get repairs done quickly. You also need to budget for repainting / carpets etc. Get reliable tradespeople.

We use an agent to do advertising and viewings and sort references etc.

As a pp says if you get good tenants it's fine.

.

You of course are exceptionally smart, holding onto a depreciating asset, in a buyers market, at an unrealistic price. What you paid for it in 2007 is not of interest to your buyer pool, if it was worth what you are asking it would have sold, which it hasn't.

I've clearly upset your "imaginised" or perhaps you meant imaginary world.

Sinak has scrapped the EPC proposals