Any landlords here - tenant request advice

[Ozone]

The OH has a flat that she rents out. It is coming up to the first year anniversary for the tenants but they are asking for a 'wet' heating system to be fitted to the flat ie. electric boiler and water fed radiators. The flat below has had this system fitted for reportedly £4k. Does anyone know of or have alternative heaters fitted. The flat currently has storage heaters on Economy seven but aren't very efficient.

[Simpo Two]

It's up to your OH.

My tenant wants me to fit solar panels for that Government grant wheeze, but I'll only do it if it's in my financial interests, not hers.

[Ozone]

Cheers Simpo, that was pretty much what i said. The tenants do seem to want to dictate what should happen (they have in the past) - they are good tenants THB keeping the place in very good order but i think the financial outlay would put the rent up slightly and they would then go elsewhere.

[sjg]

But then Economy 7 & storage heaters generally put people off - they would for me anyway.

Is it a system that would need replacing (or be desirable to replace) at some point?

On the positive side, if you did want to do it, you have willing tenants who aren't going to complain about the disruption while the works are done. If the place is due any other work, it would be a good time to get it out of the way too.

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

[Ozone]

Yes i understand what you mean about the storage heaters.

There isn't any other work due to be done at the moment it was all rewired and new kitchen and bathroom before being put up for rent.

Interesting point about the tax deductable part - i'll pass that on to her, cheers.

Has anybody got any recommendations for storage heater replacements?

[amirzed]

I did the same thing to a property about 5 years ago, needed a refurb anyway, course what i forgot was to check whether there was a gas line to feed the boiler with.

There wasn't. Not till i paid £500 to have a fresh line installed from the road anyway, and that was in a house - you need to check the gas thing if you're talking flats cos i doubt it'll be as simple as putting in a line for a house.

[Ozone]

You're right, gas isn't an option. The flat below has an electric boiler to feed the radiators.

The OH has found a supplier called easy heat that sells water filled radiators that are powered from a standard 13A socket, anybody used them?

[Simpo Two]

sjg said:

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

A rental property is not a business in that respect - check with an accountant.

[Simpo Two]

Ozone said:

The OH has found a supplier called easy heat that sells water filled radiators that are powered from a standard 13A socket, anybody used them?

That's electric then

[eldar]

Simpo Two said:

sjg said:

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

A rental property is not a business in that respect - check with an accountant.

Assuming you declare the rent to the taxman, then expenses like this are deductible.

[amirzed]

Simpo Two said:

sjg said:

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

A rental property is not a business in that respect - check with an accountant.

i think if you're replacing the heating system mid tenancy in order to continue renting/satisfy tenants that would consitute as a revenue expense and you could have the entire thing against your taxable profit....

[mk1fan]

I'd add that there is currently a consession that any works to improve the environmental efficiency of a domestic rental property is completely tax deductable - regardless of the property being occupied or not.

However, HMRC are wanting to revise the situation.

ETA: As for the OP question. The landlord is only obliged to maintain the property in a habitable condition.

If the tenant doesn't like the heating system then they have the option not to rent the property or just walk away at the end of the tenancy.

Edited by mk1fan on Thursday 14th October 18:19

[planetdave]

Electric is electric - the cost is down to how you use it.

It might be worth spending a few bob on insulation but I'm failing to see how pumping water around is any better than storage heaters with electric fires for instant heat (anyone know any better?).

[Wings]

eldar said:

Simpo Two said:

sjg said:

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

A rental property is not a business in that respect - check with an accountant.

Assuming you declare the rent to the taxman, then expenses like this are deductible.

Only a repair is tax deductable, this being an improvement is only tax allowable against capital gains, ie. when/if the property was sold and subject to capital gains tax.

[Ozone]

The tenants are saying that the flat gets cold in winter and the storage heaters aren't good enough so would like an upgrade. The water filled independant radiators are supposed to heat up more quickly than the oil filled type so saving on electricity.

[Wings]

Simpo Two said:

sjg said:

Isn't a certain amount of maintenance/improvements tax-deductible anyway?

A rental property is not a business in that respect - check with an accountant.

A rental property is an investment income, therefore subject to tax deductable allowances and tax.

[Simpo Two]

Wings said:

A rental property is an investment income, therefore subject to tax deductable allowances and tax.

But only if a repair and not an improvement, as per your earlier post.

[Wings]

Simpo Two said:

Wings said:

A rental property is an investment income, therefore subject to tax deductable allowances and tax.

But only if a repair and not an improvement, as per your earlier post.

They are BOTH tax deductable, a repair against investment income, an improvement at the time of sale, against ANY financial gain subject to capital gain.

[Simpo Two]

Wings said:

They are BOTH tax deductable, a repair against investment income, an improvement at the time of sale, against ANY financial gain subject to capital gain.

I'm currently letting my mother's house with POA, and the rent (declared and all above board) helps to pay the care home fees. Eventually I will inherit the property - so presumably free of CGT. So if I spend thousands having CH fitted, what is the tax position?

[Wings]

Simpo Two said:

Wings said:

They are BOTH tax deductable, a repair against investment income, an improvement at the time of sale, against ANY financial gain subject to capital gain.

I'm currently letting my mother's house with POA, and the rent (declared and all above board) helps to pay the care home fees. Eventually I will inherit the property - so presumably free of CGT. So if I spend thousands having CH fitted, what is the tax position?

If after inheriting the property from your mother, you continued to both own and let out the property, then the property might be subject to capital gains tax, which the cost of installing CH would be deductable from. To avoid any capital gains tax, either your present home or your mother's home would have to be sold.