Renting house (1 Viewer)

[Rose Royce]

A little help please from you intrepid full timers. We hope to join your ranks early next year and are in the middle of our research. We are currently looking at renting out our house, and would prefer to do this without any involvement from ourselves.

Would those of you who do rent out their houses be kind enough to relate your experiences?
How did you find your managing agents?
Are they responsible for everything?
Would they look after refurbishing your house?

Thanks, in advance for any help.

 

[Jim]

You really need to speak to a couple of letting agents. I know you are spoilt for choice in Epsom as it is a very popular area for lets, what with the college and all the hospitals as well as the commerce that is around the area now. There are loads of options, whereby the agents will do everything, even the maintenance and may even guarantee occupancy etc, but prices vary wildly as does the standard of service you can recieve.

There are plenty of disadvantages to letting, and leaving everything to the letting agent gives you peace of mind but you also get big bills which come out of your rental income. Remember also that as soon as you rent the house, there may be a tax issue on the income. So it pays to take your time and consider carefully all the options carefully.

I know of a couple of people who found that after doing the sums, they were better off selling than renting, but of course there are so many differing factors that everybodies circumstances can be very different.

Presently, with rates as they are now, coming off the roperty ladder would not worry me, but to have been off of it between 2000 and 2005 would have lost me a whopping rise in equity.

I hope you sort things soonest, so you can start telling us about your full timing adventures:thumb:

 

[ukrv]

Hi

A few years ago, we rented our house out and did it all ourselves - it was a nightmare.

We now have a couple of flats and use an agent - ours charges 11% plus vat.

TBH, they aren't fantastic and I find I have to double-check just about everything they do - but at least it is them doing the groundowrk etc (I can just check at my leisure).

They advertise for tenants and do the background and reference checks etc. We get 6 months free rent insurance (which is only 4 months in reality as the deposit and 1 months rent in advance count for 2 months).

They go round and do six-monthly checks on the properties and they liaise with our builder for things that needed correcting.

They also have a list of tradesmen for any repairs but Ive been careful to put a limit of £250 on anything. They wont admit it but you can bet they get back-handers etc for using certain firms. Any more than £250 and I would want to get my own quotes.

At the moment, we pay £130 per month in agents fees.

I do keep looking at letting agent software (which has timelines for issuing forms and has legal guidelines) with a view to doing it myself.

But I would still have to pay for newspaper adverts etc etc so Im not sure yet.

You can visit www.landlordzone.co.uk who have some great links and a useful forum too.

Paul

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[Road Runner]

I would love to full time once my caring days are over but my wife would just not do it.

Even if we could go to Spain for the winter would be superb just for the warmth and my health.

I've considered getting a holiday static in Bordeaux but Irina wants property.

I so want a life without problems now (the last ten years have been hellish sadly) and that not all to do with looking after Dad but sure any ideas of relaxing as I get older are out sadly.

Any of you that can go full timing i wish you all the best and certainly envy you :thumb:

 

[Suzy]

A few years ago I rented out my house for a year and went to live and work in Spain. I did it through a letting agent. I didn't make any money on it but neither did I lose any, the mortgage was paid and after a year I returned to live there.

I would recommend it, especially after my own experience where I decided that Spain was in fact great but I didn't want to live there!

 

[2escapees]

No one has mentioned Tax! both income and capital gains need checking out before you sign anything!

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[Road Runner]

A few years ago I rented out my house for a year and went to live and work in Spain. I did it through a letting agent. I didn't make any money on it but neither did I lose any, the mortgage was paid and after a year I returned to live there.

I would recommend it, especially after my own experience where I decided that Spain was in fact great but I didn't want to live there!

If you can afford to keep the property and full time it's your safest investment.

 

[ukrv]

No one has mentioned Tax! both income and capital gains need checking out before you sign anything

Good point Mike,

We set our properties up as Tenants in Common with unequal shares - Ann-Marie owned 90% of the properties and me 10%.

This is because we planned that I would work and Ann-Marie wouldnt.

We completed the forms to have our rental income paid to us gross (otherwise the agent is forced to withold tax on your behalf).

So, Ann-Marie can earn upto her annual allowance in rental income before we have to start paying any tax on it.

Also, with regard capital gains tax, we wrote to HMRC to advise them that each property (just for 1 week each when we bought them) was our main home - this helps with capital gains.

I would seriously point people to the forum at www.landlordzone.co.uk - where there are a lot of very knowledgeable people.

Also, visit http://www.taxationweb.co.uk/forum/

Paul

PS Just like this forum, use them to get a general idea but ensure you take professional advice :thumb:

.

 

[Jim]

No one has mentioned Tax! both income and capital gains need checking out before you sign anything!

I did

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