Buy to let is it worth it?

[Lenny1987]

Currently looking at moving to a larger property, and people have said we should rent current property out? We can afford to do this but with all the tax changes in recent years wondering if in other peoples experience it is worth it? Thanks

@whataboutbob I’m perfectly aware, I don’t condone it, I’m just reporting what I see so often. These are also the same people that think gas checks etc are optional.

A simple phone call to HMRC or to the council could bring them up sharp. Why should they be a,Lowe to get away with it. Especially the gas safety checks. That smacks of rogue landlordship.

@whataboutbob depends whether their other income uses up their tax allowance - if your other income is well below tax allowance you can use this legally … but you have to fill in your tax form with all savings (interest unless ISA - although for some reason you have to tell them about that still) & other income less allowed expenses ie repairs, gas servicing, insurances, agents fee (if you have one), & membership of landlord organisations like RLA etc you can no longer claim for mortgage relief,

@mumwon- point taken, if the overall income is below the tax threshold it’s not dodgy. But not issuing a gas safety certificate is beyond the pale.

well beside the very issue of safety of ANYBODY not having their gas served each year let alone a landlord who rents his property out! - when/if they want to evict re section 21 they wont be able to - daft, selfish & dangerous & bad business practice (just remined me my own home gas service is due!!!!) Hence why I suggest going/joining landlord association - you abide by the rules keep up to date with new laws & if you have a problem they can help you

& full landlord insurance is v expensive & trying to claim from it!!!!

Interesting, lots of much more positives on here today. We would of course take our responsibility as a landlord seriously and get all appropriate safety checks and measures in place.

Insurance isn't dear. I pay 100 for rent guarantee if tenants don't pay and about 240 for building ins.

No, I don't find the insurance expensive, about £200 pa per property for building and landlord insurance. What has stung is being tied into going via the financial advisor when a mortgage deal expires to get a new one, his fees cost a packet and I will find a way around it next time, so I'd advise asking a question about that when you change your mortgage.

insurance prices obviously vary. You need buildings, landlord contents (you've provided carpets at least), malicious damage (excluded from the cheaper policies - tenants are legal occupiers so are not covered for vandalism otherwise and yes it does happen), legal expenses (costs about £2k for eviction) and rent guarantee - don't take anyone who doesn't pass the criteria for that.

and yes to gas safe if gas - a legal requirement and so it should be. Make sure tenants sign that that they have received the cert before moving in and at every renewal. There are currently cases where this wasn't done (even though the cert was) and it makes eviction permanently impossible.

With the proposed abolition of S21 I’d be very wary. More so than with the tax laws.

We own one. We make no profit... Rent covers mortgage, tax, agents fees, repairs etc. But when the mortgage is paid off it will be an asset. We live in Forces housing ourselves.

We've been lucky with tenants. Over 5 years, same original tenants. But we've had friends who haven't been as fortunate.