Managing property AIBU

[FlagadaEtRaplapla]

Can I ask your opinions about this please? I’m not sure how to approach this.

My mum owns two properties. She would like to pass on one of the properties to me with the idea that I could rent it out and earn money from the rental income.

The property is 400 miles away from where I live, and I would find it very hard to get there, as I don’t drive due to a medical condition.

I also work in a very stressful job, and need to really focus on it. I really hope this doesn’t make me selfish, but I really would struggle with the extra responsibility of managing the tenants in the property.

My Mum says I’m turning down free money, but I really think it would be too stressful and I need to focus on my job, as that’s obviously the priority. I really would like my Mum to see where I’m coming from.

AIBU?

Can you not get an agency to manage it for you? I am not too sure of implications ref taxes...

Why couldn't you hire a property manager who is local in the area? Turning down a free piece of lucrative real estate seems a bit crazy to me.

Get an Arla licensed agent, you will still make income from it and you won’t have to worry about legislation etc at there is a huge amount you need to comply with. If you don’t have the time and to manage it yourself you can pay someone to do it for you. Shop around as well as fees vary and ask them to confirm ongoing fees as well so you don’t get a nasty shock

Oh if they screw up you can go to Arla as well

Would your mum be open to selling one of the properties and buying another near you, so you could let that one out?

If your mum wants to give you the property then that is lovely of her. Sell the property and invest the money in a way that will give you investment income without that level of stress.

If she wants to retain control and prevent you from selling, then she is not actually giving you anything, rather she is offering you a paid job of managing this property. Do feel free to turn down such an offer.

Let the property out through an agency?

I own a property which I lease to a housing association (HA). The HA works on behalf of the local council and places tenants from the housing list ie it is a social housing let. My house is currently let to a family which may otherwise be in temporary or unsuitable accommodation.

The rent I receive is lower than a commercial rent but it means that I am paid even if there is no tenant in the house. The HA deals with day to day matters directly with the tenant.

I am contacted by the HA if, for example as happened last week, the boiler needs a repair. With my authorisation the HA organises the repair & I pay for it. The income must be declared to HMRC. Repairs deemed essential may be set against tax eg repair of heating/hot water system (not, however, decorating, furniture etc)

Insurance for a social housing let is higher than standard insurance & is organised by a specialist company.

I can request that I make a periodic inspection of the property, subject to prior arrangement and giving adequate notice. A landlord is accompanied by a member of HA staff during inspections.

Perhaps there is a similar scheme in the area where the house owned by your mother is situated. If you/she consider the possibility of leasing to a HA just make sure you read all the small print so you know what is expected of you, the tenant and the HA.

Sorry for a long reply.

You use a management agency - very simple and what most professional property investors do. Yes they take a percentage but hey that’s better than turning the property down!