I will shortly be a landlord - what to read
Discussion
I will shortly be renting out my flat (I now live with my partner somewhere else). In view of the other recent thread, what can anyone recommend that I read to know about my obligations and best way to run it? It's in a high demand rental area so I know I can rent it easily. It has new boiler etc so all that stuff is no problem; it's in Brent so I will get stiffed with a licence cost that they charge.
But mainly what I do in the even of a non-payer is the main thing ie when to issue a section (21 or whatever). Also what about tax - I have a normal job. I presume I will have to do a self-assessment from now on (Since I've just spent a load of money on new stuff, can that be recorded as allowable expenses? does buying furniture etc count?)
cheers
edit
found this
https://www.gov.uk/renting-out-a-property/paying-t...
Edited by CoolHands on Wednesday 30th January 15:13
Most landlord topics on here, then decide to sell it 
https://www.landlordlawblog.co.uk/
https://nearlylegal.co.uk/blog/ - although it's not all related to normal ASTs, lots of leasehold stuff, legal aid and homelessness etc.
I would first have a look at the finances to see if it's worth keeping a hold of. The tax situation is changing, and I think maxes out next year, so depending on the money, you might find it's not really worth keeping hold of, or you could use that money better elsewhere.
If London prices have maxed out, you might be better off selling it and lumping that money in to your new house and paying down the mortgage (assuming there is one), or putting in to some other, safer investments.
https://www.landlordlawblog.co.uk/
https://nearlylegal.co.uk/blog/ - although it's not all related to normal ASTs, lots of leasehold stuff, legal aid and homelessness etc.
I would first have a look at the finances to see if it's worth keeping a hold of. The tax situation is changing, and I think maxes out next year, so depending on the money, you might find it's not really worth keeping hold of, or you could use that money better elsewhere.
If London prices have maxed out, you might be better off selling it and lumping that money in to your new house and paying down the mortgage (assuming there is one), or putting in to some other, safer investments.
There's a shedload of information here:
https://www.landlordzone.co.uk/
Maybe start here:
https://www.landlordzone.co.uk/information/new-lan...
https://www.landlordzone.co.uk/
Maybe start here:
https://www.landlordzone.co.uk/information/new-lan...
Mr Pointy said:
There's a shedload of information here:
https://www.landlordzone.co.uk/
Maybe start here:
https://www.landlordzone.co.uk/information/new-lan...
Agree with the above, landlord zone is a very good resource. I'd also look at https://www.propertyhawk.co.uk/ as a free, easy way of keeping track of things. https://www.landlordzone.co.uk/
Maybe start here:
https://www.landlordzone.co.uk/information/new-lan...
Either join the Residential Landlords association www.rla.org.uk/ , or your local Landlords Association. The former offers their members both legal forms, and up to date legal advice, the latter both online or via telephone helpline.
The two things I'd recommend that you're VERY clear about before you enter into an AST are what you must serve the tenant with - and in the case of one piece of information, it must be BEFORE they go into occupation - and the Tenancy Deposit Scheme rules. So many landlords come a cropper with these and find that, in the worst case scenario, they can't serve a (no fault) section 21 notice at all.
If you don't protect the deposit and serve the relevant info within 30 days, you're also handing the tenant a shot at an open goal to make a claim for 1-3 times the amount of the deposit for having failed to comply.
If you don't protect the deposit and serve the relevant info within 30 days, you're also handing the tenant a shot at an open goal to make a claim for 1-3 times the amount of the deposit for having failed to comply.
I would let it out via a letting agency if your new to this, some will provide a full service where they
find you a tenant,
do back ground checks on them to check they are who they are
and can afford the rent
take deposit and store it safely.
do quarterly checks on property to check they are keeping it together, clean etc...
make sure ALL the paperwork is correct.
have tradesmen on the end of the phone so that if the cooker stops working they get onto it so you don't have to.
most importantly if you get the top cover they provide cover you for legal fees should a tenant stop paying the rent. This happened to me a few years ago, the legal cover carried on paying the rent to me, the legal people took out court proceedings to remove them, it took 5 months, they were evicted eventually, and it did not cost me a penny.
I took a week off work on the day they moved out expecting the house to have been wrecked......I couldn't believe my luck, they left it spotless, I was in there for about 25 minutes touching up markings on door frames where they had shifted their furniture out. I had it re let in about 2 weeks a result
I pay the agency 9 % of the monthly rent, in my view worth every penny in view of the "non Payers" i had
Do not provide furniture or white goods....if they break them.....you will have to replace/repair, so only provide cooker/oven
If you get a long term lease it is a pain having to pay for the new contract every 6 months or year.
Think carefully about putting up the rent every year on a good tenant, it may be worth keeping them there and sweet rather than them leaving, and you not finding another tenant for a month or two, you may loose out more than a few extra quid every month
do it for the long term, pay down as much as you can on the mortgage as you can to reduce over all debt, you MUST put money aside every month to pay the tax man....he is not forgiving, as well as breakages the tenant causes, they do expect an instant fix, so I would suggest at least a couple of grand so that you don't have to borrow....
If you tax affairs are simple, filling out a tax return is not difficult, but an accountant, can for about £300-£500 a year do it for you, they are also savy on what you can reduce on your tax bill.....maybe even saving you money, their fees are also tax deductible.
I have rented out properties since about 1993, and they have helped supplement my earnings big time. I had a wobble about the way prices were going and sold up just before the last crash in prices, then bought back in on bigger properties and have made great profit, the shame is the tax bill on selling. Make sure you get your flat valued by at least 3 agents for selling before renting so you can reduce capital gains tax on price/value after you move out.
If you have a mortgage on it, make sure your lender allows you to rent it....many don't.
There are big down sides, like the tenants from hell who may trash the flat, my best mate had this, it cost him near on £20k to put the house back to a habitable status. you can't get money out of people who have none. Don't be precious about it, it's not your home any more. Magnolia is a great colour for it, cheap to buy, slap on, quick, and makes the rooms look big. brownish/biscuit coloured carpets are best for hiding dirt/stains.
Don't allow pets, they smell, trash every thing, and add to your costs...especially dogs chewing everything, cats shred everything, they both crap everywhere
You MUST get gas safety certificate, and boiler/stove/fire serviced every year, your agent should keep on top of this
good luck
find you a tenant,
do back ground checks on them to check they are who they are
and can afford the rent
take deposit and store it safely.
do quarterly checks on property to check they are keeping it together, clean etc...
make sure ALL the paperwork is correct.
have tradesmen on the end of the phone so that if the cooker stops working they get onto it so you don't have to.
most importantly if you get the top cover they provide cover you for legal fees should a tenant stop paying the rent. This happened to me a few years ago, the legal cover carried on paying the rent to me, the legal people took out court proceedings to remove them, it took 5 months, they were evicted eventually, and it did not cost me a penny.
I took a week off work on the day they moved out expecting the house to have been wrecked......I couldn't believe my luck, they left it spotless, I was in there for about 25 minutes touching up markings on door frames where they had shifted their furniture out. I had it re let in about 2 weeks a result
I pay the agency 9 % of the monthly rent, in my view worth every penny in view of the "non Payers" i had
Do not provide furniture or white goods....if they break them.....you will have to replace/repair, so only provide cooker/oven
If you get a long term lease it is a pain having to pay for the new contract every 6 months or year.
Think carefully about putting up the rent every year on a good tenant, it may be worth keeping them there and sweet rather than them leaving, and you not finding another tenant for a month or two, you may loose out more than a few extra quid every month
do it for the long term, pay down as much as you can on the mortgage as you can to reduce over all debt, you MUST put money aside every month to pay the tax man....he is not forgiving, as well as breakages the tenant causes, they do expect an instant fix, so I would suggest at least a couple of grand so that you don't have to borrow....
If you tax affairs are simple, filling out a tax return is not difficult, but an accountant, can for about £300-£500 a year do it for you, they are also savy on what you can reduce on your tax bill.....maybe even saving you money, their fees are also tax deductible.
I have rented out properties since about 1993, and they have helped supplement my earnings big time. I had a wobble about the way prices were going and sold up just before the last crash in prices, then bought back in on bigger properties and have made great profit, the shame is the tax bill on selling. Make sure you get your flat valued by at least 3 agents for selling before renting so you can reduce capital gains tax on price/value after you move out.
If you have a mortgage on it, make sure your lender allows you to rent it....many don't.
There are big down sides, like the tenants from hell who may trash the flat, my best mate had this, it cost him near on £20k to put the house back to a habitable status. you can't get money out of people who have none. Don't be precious about it, it's not your home any more. Magnolia is a great colour for it, cheap to buy, slap on, quick, and makes the rooms look big. brownish/biscuit coloured carpets are best for hiding dirt/stains.
Don't allow pets, they smell, trash every thing, and add to your costs...especially dogs chewing everything, cats shred everything, they both crap everywhere
You MUST get gas safety certificate, and boiler/stove/fire serviced every year, your agent should keep on top of this
good luck
JayMawds1982 said:
Agree. Under no circumstances contact the tenant or have any liaisons with them. Don't try and be friendly. In fact just ignore them! If they haven't paid then just chill out and contact them in a week/month/decade or so. Have at least £5k saved up for a rainy day to cover this otherwise you're in the wrong game. Being a landlord is not for the fainthearted. Tough guys only.On a lighter note, both I and my tenant are with Santander, so theoretically by 9:01AM he was late! Ive given him a warning, next time il be round with an iron bar.
HSBC 6:00-9:00 a.m.
Santander 6:00-9:00 a.m.
Yorkshire Bank 12 - 12:30 a.m.
Lloyds 12:00-1:00 a.m.
watchnut said:
I would let it out via a letting agency if your new to this, some will provide a full service where they
find you a tenant,
do back ground checks on them to check they are who they are
and can afford the rent
take deposit and store it safely.
do quarterly checks on property to check they are keeping it together, clean etc...
make sure ALL the paperwork is correct.
have tradesmen on the end of the phone so that if the cooker stops working they get onto it so you don't have to.
most importantly if you get the top cover they provide cover you for legal fees should a tenant stop paying the rent. This happened to me a few years ago, the legal cover carried on paying the rent to me, the legal people took out court proceedings to remove them, it took 5 months, they were evicted eventually, and it did not cost me a penny.
I took a week off work on the day they moved out expecting the house to have been wrecked......I couldn't believe my luck, they left it spotless, I was in there for about 25 minutes touching up markings on door frames where they had shifted their furniture out. I had it re let in about 2 weeks a result
I pay the agency 9 % of the monthly rent, in my view worth every penny in view of the "non Payers" i had
Do not provide furniture or white goods....if they break them.....you will have to replace/repair, so only provide cooker/oven
If you get a long term lease it is a pain having to pay for the new contract every 6 months or year.
Think carefully about putting up the rent every year on a good tenant, it may be worth keeping them there and sweet rather than them leaving, and you not finding another tenant for a month or two, you may loose out more than a few extra quid every month
do it for the long term, pay down as much as you can on the mortgage as you can to reduce over all debt, you MUST put money aside every month to pay the tax man....he is not forgiving, as well as breakages the tenant causes, they do expect an instant fix, so I would suggest at least a couple of grand so that you don't have to borrow....
If you tax affairs are simple, filling out a tax return is not difficult, but an accountant, can for about £300-£500 a year do it for you, they are also savy on what you can reduce on your tax bill.....maybe even saving you money, their fees are also tax deductible.
I have rented out properties since about 1993, and they have helped supplement my earnings big time. I had a wobble about the way prices were going and sold up just before the last crash in prices, then bought back in on bigger properties and have made great profit, the shame is the tax bill on selling. Make sure you get your flat valued by at least 3 agents for selling before renting so you can reduce capital gains tax on price/value after you move out.
If you have a mortgage on it, make sure your lender allows you to rent it....many don't.
There are big down sides, like the tenants from hell who may trash the flat, my best mate had this, it cost him near on £20k to put the house back to a habitable status. you can't get money out of people who have none. Don't be precious about it, it's not your home any more. Magnolia is a great colour for it, cheap to buy, slap on, quick, and makes the rooms look big. brownish/biscuit coloured carpets are best for hiding dirt/stains.
Don't allow pets, they smell, trash every thing, and add to your costs...especially dogs chewing everything, cats shred everything, they both crap everywhere
You MUST get gas safety certificate, and boiler/stove/fire serviced every year, your agent should keep on top of this
good luck
All of this..... oh and I pay the agent 7.5% time to re negotiate watchnutfind you a tenant,
do back ground checks on them to check they are who they are
and can afford the rent
take deposit and store it safely.
do quarterly checks on property to check they are keeping it together, clean etc...
make sure ALL the paperwork is correct.
have tradesmen on the end of the phone so that if the cooker stops working they get onto it so you don't have to.
most importantly if you get the top cover they provide cover you for legal fees should a tenant stop paying the rent. This happened to me a few years ago, the legal cover carried on paying the rent to me, the legal people took out court proceedings to remove them, it took 5 months, they were evicted eventually, and it did not cost me a penny.
I took a week off work on the day they moved out expecting the house to have been wrecked......I couldn't believe my luck, they left it spotless, I was in there for about 25 minutes touching up markings on door frames where they had shifted their furniture out. I had it re let in about 2 weeks a result
I pay the agency 9 % of the monthly rent, in my view worth every penny in view of the "non Payers" i had
Do not provide furniture or white goods....if they break them.....you will have to replace/repair, so only provide cooker/oven
If you get a long term lease it is a pain having to pay for the new contract every 6 months or year.
Think carefully about putting up the rent every year on a good tenant, it may be worth keeping them there and sweet rather than them leaving, and you not finding another tenant for a month or two, you may loose out more than a few extra quid every month
do it for the long term, pay down as much as you can on the mortgage as you can to reduce over all debt, you MUST put money aside every month to pay the tax man....he is not forgiving, as well as breakages the tenant causes, they do expect an instant fix, so I would suggest at least a couple of grand so that you don't have to borrow....
If you tax affairs are simple, filling out a tax return is not difficult, but an accountant, can for about £300-£500 a year do it for you, they are also savy on what you can reduce on your tax bill.....maybe even saving you money, their fees are also tax deductible.
I have rented out properties since about 1993, and they have helped supplement my earnings big time. I had a wobble about the way prices were going and sold up just before the last crash in prices, then bought back in on bigger properties and have made great profit, the shame is the tax bill on selling. Make sure you get your flat valued by at least 3 agents for selling before renting so you can reduce capital gains tax on price/value after you move out.
If you have a mortgage on it, make sure your lender allows you to rent it....many don't.
There are big down sides, like the tenants from hell who may trash the flat, my best mate had this, it cost him near on £20k to put the house back to a habitable status. you can't get money out of people who have none. Don't be precious about it, it's not your home any more. Magnolia is a great colour for it, cheap to buy, slap on, quick, and makes the rooms look big. brownish/biscuit coloured carpets are best for hiding dirt/stains.
Don't allow pets, they smell, trash every thing, and add to your costs...especially dogs chewing everything, cats shred everything, they both crap everywhere
You MUST get gas safety certificate, and boiler/stove/fire serviced every year, your agent should keep on top of this
good luck
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