To buy a small property to rent out - would you? Have you? How have you found it?

[opalplumstead]

I am currently about to apply for a buy to let interest only mortgage to buy a small house to let out.

I have had the mortgage illustration and it will cost me about £280 a month, (I already have a repayment mortgage for the house that I live in that is £600 a month).

I have had a rent estimate done and the estate agent thinks that the approximate rent would be £600-700 pcm.

I am new to all this - I only bought my own house 6 years ago! Is it worth doing? Or is it more hassle than it is worth? And any other advice or words of wisdom would be amazing.

TIA

@BillMasen I have done cost analysis for previous employers (managing large country estates) on holiday let vs traditional let and the holiday let’s made very slightly more income but if you factor the time spent organising them you are better off on a traditional let.

It is very dependent on the area of the country obviously but the average holiday let (pre COVID) obtained 20 weeks of occupancy. In very desirable areas you can achieve 40+ but you are looking at expensive areas I.e central lakes

Once you’ve factored in the added upkeep for furnishings, cleaning costs, advertising you aren’t much better off based on a 20 week occupancy.

Consider using Open Rent and managing it yourself. It is easier than you think and I have always had excellent tenants ( who, for the landlord haters, have ALL wanted to rent for one reason or another)

Buy to Let landlords are buying houses designed to first time buyers to get on the property ladder therefore increasing demand and prices. I think it’s a shameful way to make money.

Do it. Don't be a wage slave forever.

Get your tin hat op. MNers loathe anyone that owns more than one home.
Give over – MN is as full of shy Tory landlords either bleating about how hard it is for them to landlord, boo hoo, or arguing that they’re generously and benevolently providing a public service, as it is people pointing out how extra-fucked BTLs are making the housing market. I’d argue there’s probably more landlords here than not, judging by the way many of these threads go.

Have enough money to pay for a new boiler and a new front door. If you can do DIY then you'll save money but some jobs need doing by a qualified person.
Gas safety check annually. Electrical safety check every few years too.

Aren't there energy performance certificate requirements too?
Rules on checking entitlement to remain in UK on letting and you can't discriminate against those on benefits.
Deposits need keeping safe and are restricted too.

If you get a good tenant that's great. If you get some rubbish person then you'll lose money.
Tax is a consideration. Speak to an accountant.
You'll need landlords insurance too.

Some councils want registration of all landlords in some areas.

@felulageller

Do it. Don't be a wage slave forever.

£600 rent Assume basic tax payer that this £120 tax £60 to agent Insurance and certificates and fees Mortgage £280

I don't think an income of less than £100 a month assuming nothing goes wrong will stop her being a wage slave!

My partner has 2 but to let properties - one is tge house he lived in before moving in with me. The second he could afford fmdue to saving money after moving in with me. He rents at a moderate level and has had the same tenants in both for the past 5 years. He has only increased the rent slightly once and responds to issues queries without delay. He figures best to not be greedy and keep the same tenants as more cost effective in the long run rather than having to redecorate/ deep clean regularly and pay agency finder fees