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Considering letting - what do I do?

emma mccabe

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Hiya and thanks in advance for any help you can offer me

I currently own my home and have bought another home with my boyfriend. We are considering letting my house out and have tenants lined up who are very highly recommended. We are going to be charging a very modest rent - basically covering the mortgage. We are obviously quite financially committed already with another large mortgage and really don't want to end up in hot water for getting the landlord thing wrong!! So, what do I need to consider when deciding whether to let the property.

We know we need to contact my current mortgage lender and request permission to let. We also have some documents that are to be used as a tenancy agreement to read through. We would put an inventory together as it will be part furnished.

What are the tax implications and is there anything else really obvious that I should give some thought to?

Many thanks


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Are you in this to make money or as a joke ?

Blunt question but who cares about about a recommendation as you need to ensure there are credit checks done and lots of details verified.

Number of people who get ripped off by friends and so called family is quite high so once in make them pay by Standing order.

Charge market rent or just below as it will cost more than your mortgage once you pay for Insurance, Gas and Electrcity checks and any work and repairs that you end up doing.

Your mortgage payment may go up as lender may increase the rate charged. If there is equity in the property then always an opportunity to go a specific BTL mortgage and take out some of that equity provided the mortgage will cover it.

Int on property is allowable against tax and no CGT if sold with 3 years as was principle private residence.

You will end up in hot water if you allow someone else to dictate what rent you should charge, its your property so be in control and be clear about being in control.

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Can I suggest you go into any major bookshop and invest in a book on being a Landlord. There are plenty of titles around. Have a good read of what is required of you. This action is a first and solid step into the insight of being a Landlord.

Never trust anyone as a Landlord when you are setting up a Tenancy and as has been suggested the worst type of tenants often turn out to be friends and family as exposed many times on this Forum.

If you need any specific advice after reading through your book then come back to the forum as there is a wealth of experience contributing to the forum.


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Get permission from Mort co

fully reference tenant (ie credit check -verify permanent contract of employment- verify income -make sure income covers rent and liabilities (loans,cc etc )

Rent should allow for insurance payments, void periods, gas safety checks, repairs and upkeep of property as Mel points out ......also hope fully some profit !

I also steer well clear of letting to family and friends ......even when a tenant becomes a "friend " i keep them as an "arms length" friend ..................always...

get a book and spend many hours reading this forum and others !

It can be plain sailing but if you get a bad un it will be worse than your worst nightmare....


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Thanks everyone I didn't even think about the gas checks etc - told you I'm new to this!!

We are thinking about letting to family and we were well aware of the implications this can have on the relationship thats why we are having a tenancy agreement etc. The rent will cover the mortgage and will leave a little bit for other stuff i.e. repairs etc but we were just concerned with having the mortgage paid for a few years and having enough to cover the maintenance.

Couldn't sleep making a profit out of this particular couple even though I hear what you say about so called family and friends. We set the rent, after all they don't know what our mortgage payments are and it is just below the going rate after doing some research this week so probably not as modest as what we first thought, but still a good rate for tenants. Got a shock actually at what people pay to rent boyfriend is looking at getting another one later on if this works out.

I think I will invest in a good book before I take the plunge! Thanks for your time and advice.


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