bil8999 Posted October 22, 2023 Report Share Posted October 22, 2023 We have 41 lets, thinking of my daughter taking over all responsibility for maintenance, rents etc. Pretty much the same as renting a chair in a hairdressers, i still get my rent even if you don't have a customer. I still work on the tools 6 days a week building etc, 70 in January, got enough work for next 5 years on new builds etc. Then that's me finished. The question is, what percentage of the rental income should she receive for taking over? Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted October 22, 2023 Report Share Posted October 22, 2023 About 8% of revenue, so all the profit. Quote Link to comment Share on other sites More sharing options...
bil8999 Posted October 22, 2023 Author Report Share Posted October 22, 2023 1 hour ago, Carryon Regardless said: About 8% of revenue, so all the profit. What about repairs, or, is that included in the 8% Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 22, 2023 Report Share Posted October 22, 2023 If you want to keep it entirely business like (as opposed to mates rates because she is family) then she should get the same as a private company / Agent would doing the same. I'm not aware of Agents who guarantee rent payments. Presumably we would be looking at the percentage split AFTER TAX......and she would be doing virtually everything so probably full time. It would be quite difficult to make the switched as some of the property would be work in progress etc. You know what your annual net profit is likely to be and if it were me I think I'd rather pay her a set salary for running the business, at least for a full year until she is familiar with things. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted October 22, 2023 Report Share Posted October 22, 2023 1 hour ago, bil8999 said: What about repairs, or, is that included in the 8% Well no, she call you. You charge 100%. She adds 100%. So when you pay her for paying you it costs 200%. Fairly standard I would have thought. Quote Link to comment Share on other sites More sharing options...
bil8999 Posted October 22, 2023 Author Report Share Posted October 22, 2023 1 hour ago, Richlist said: If you want to keep it entirely business like (as opposed to mates rates because she is family) then she should get the same as a private company / Agent would doing the same. I'm not aware of Agents who guarantee rent payments. Presumably we would be looking at the percentage split AFTER TAX......and she would be doing virtually everything so probably full time. It would be quite difficult to make the switched as some of the property would be work in progress etc. You know what your annual net profit is likely to be and if it were me I think I'd rather pay her a set salary for running the business, at least for a full year until she is familiar with things. I was thinking more on the lines of me leasing her the properties for a fixed amount, any void periods, repairs, insurance etc has to come from her % Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 22, 2023 Report Share Posted October 22, 2023 To complex for me and possibly also for your accountant. Specialist professional advice is probably needed. Quote Link to comment Share on other sites More sharing options...
Melboy Posted October 23, 2023 Report Share Posted October 23, 2023 I think I would go down the salary route as payment for what she has to do. See how that goes initially and you can always adjust things as time progresses. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.