new landlord advice?

[Wibblywobblyfoo]

Hi, DH and i have become landlords, not by our choice, but by necessity.
I have no idea about the tax implications, how much it costs to be on top of it all etc. I have heard that you can deduct certain costs from the income before paying tax, but what kind of things?
thanks.

Lots of advice online:

www.gov.uk/browse/housing-local-services/landlords

Also look at Shelter to see your obligations towards your tenants.

You need to join one of the landlord associations and get informed of all
The rights and obligations.

There are lots of insurances, budget for fixes , agents fees etc. If you cant cope with a void or a non-payer don't do it.

Epc over e I hope? Btl mortgage? All your stuff out? Emotionally detached?

It's not plain sailing being a landlord... You should only get into this with your eyes wide open... Make sure if you have a mortgage on the property they it is s BTL one. If not speak to your mortgage provider.

Property was left to us in a will. No mortgage. We have a letting agent dealing with it. Have insurance. All the safety checks done etc.
We tried to sell but were unable, and it sitting empty was costing us 160 a month in service charge that we just couldn't afford.

Ah - is it a retirement apartment? There's another thread on this. They can be sold but for a tiny fraction of the cost.

If you can’t afford £160 a month service charge, how will you cover repairs? What if the boiler breaks? You need a cushion to ensure you can cover anything like this.

I can see that getting rent to pay £160pcm service charge seems like a good solution. However having bad tenants could cost you thousands. A general estimate for repairs/maintenance is 10% of the rent. This really isnt an easy option and you will have to put time and effort into it.

Dont assume the letting agent has your back! They find you tenants, but pretty much any tenant. They can cause many problems, overcharge for services, can p off your tenant, can miss maintenance issues, can not serve papers correctly, can write contracts which dont protect you etc etc. Bottom line, your property and your tenants are your responsibility, join NLA for £100pa and read up on legislation, responsibilities etc. Theres also a free legal helpline.

As for tax, you can get an accountant to do your self assessment for a few hundred. You need to keep detailed records though of all expenditure and income.

I wouldn't advise anyone to become an "accidental" landlord unless they can really afford it if things go wrong. Why were you unable to sell? Usually not being able to sell means it has been priced too high.

Or is in a bad state of repair, which is definitely not an ideal rental property.

Its in perfect state, but is a retirement property, and in the block there are 7 on the market already. All with various agents and priced in a similar range. We dont 'need' the income from it, so any money that it makes is staying put in an account so that will cover upkeep. We are hoping to keep it for a year or 2 then try to sell it again.
It wasn't that we couldn't afford it as such, it was more that it seems ridiculous to have it there empty and costing us money every month.
We put in new carpet, new boiler and freshly painted it throughout when the tenant moved in.

Is there a particular reason why they're not selling? Might not be easy to get a tenant if it's a retirement property.

No idea why they arent selling. Some are 1 bed some are 2. Its a nice block. Over 55s only.
We managed to get a tenant within 2 weeks tho, which i was not expecting.

I’ve had my flat rented out for years.

I get full management from the letting agent which is invaluable. I do a tax return once a year and that’s about it unless anything needs fixing but with the full management the agent arranges quotes and sending in tradesmen. I also have landlord insurance. I visit once a year to check the tenants ok and getting anything he needs and agent does checks quarterly and reports back. Simples.

It’s very hands off of you are willing to go full management (around 9-12%) of the rent.

You will need to complete a self assessment tax return and include the rent as income. Unless you earn below the personal allowance threshold currently it would all be taxed as per your banding. I think the costs you can offset is changing but it has been mortgage (interest element only), maintenance (not home improvements), service charge, agent fees and so on. Bear in mind you will be liable for cgt should you decide to sell.