Renting property out to rent somewhere else

[Iloveapplepie]

Has anyone become accidental landlords and done this? If so, please can you share you're experiences?

I'm in a situation where it looks like it will be and I'm just after a bit of knowledge/info on the subject.

We did it and our tenants (supposedly vetted by a letting agent) included:

A family whose mother had depression and left her primary aged kids on the road to be picked up and taken to school by anybody passing, without breakfast. They moved to grandparents' so mother could get help.

An ex-jailbird whose mother did all the agency paperwork. He chopped up half our furniture and burned it in the fireplace, then did a flit. We found out a month later when rent wasn't paid. Cannot describe what the cleanup was like...

A Romanian cleaner who put 4 months' wages into 1 so she would pass the agency's income test. She, her partner and his brother had no other visible form of income. We refused to take them.

A lovely military family who kept the place in great condition, paid punctually and carried out maintenance work to a high standard asking us for materials cost only. Unfortunately they only lasted 18 months.

We ended up selling the place, also because our own period of renting came to an end and we needed the money.

Being a landlord is not for the faint-hearted.

Make sure the figures add up regarding paying tax on the income, including more expensive insurance and changing the mortgage to buy to let.
I have let various properties over the years 75% of tenants are fabulous, 20% have issues and 5% are downright difficult.

We did this for several years, waiting for our property to come out of negative equity. We were mostly very lucky with our tenants and our landlord. But am happy to not have the additional hassle now!

I did this for a long time and considered managing the property myself. I decided to go with a letting agent though, which was the best decision I ever made. They took 10% of the income, but it was a small price to pay as they dealt with absolutely everything! I think I was lucky as I never really had any issues. I let mainly to students though (which I wanted to avoid initially) but it turned out to be problem free...they were late with the rent a few times and broke the odd bed, but that was it. Good luck!

Thanks for your messages. I really don't want the hassle of renting out, nor have other people living in my 'home'. It's also decorated to top spec/high standard. It's been on the market and not selling, price dropped etc. I cannot afford to drop anymore as its already pretty low, but we are having another baby and we just can't all fit in the house. If I was just buying a house id be sorted, it's just selling mine!

You would technically have 2 properties for tax purposes. Inland Rev
would not be interested whether you are renting or buying just which
is your main home and which is your second You would really need
to get advice from an Accountant .
If you rent out you can however set some expenses against tax.
As someone else has pointed out tax relief on mortgage interest
payments on a let property is no longer as generous as it was.
Another reason for seeing an Accountant

I thought I'd only have one as I wouldn't own the one I live in? I would be renting?

I did this - didn't have any interest when it went on the market and so rented it out and I moved to London.

I was lucky in that I had 1 set of tenants for the entire period, and then wen they moved out after 3 years I got it back on the market and sold.

Towards the end it was a PITA. You need to comply with so much stuff - and even tho a letting agent will guide you though it is all costs.

Are you an HMO that needs mandatory licencing? Are you an HMO but don't need licensing? Gas, electricity certificates and legionnaires risk assessment. Void periods. Wear and tear. Feeling a bit sick every time the agent calls 'what now?'.

If it is just space that is the issue - can you stay where you are and deal with is for 6 months or a year and then try and sell? Market might be better than.

We are likely about to do this if our sale falls through but we're going the way of letting 3 rooms out in our house to lodgers and keeping the living room as our bedroom.

That way we don't need to get rid of everything. And then rent a 1 bed in the city we need to be in.

We could stay put if absolutely necessary but 6 of us - once baby comes along - crammed in the house perhaps won't do much for my mental health!