Cyclone Posted December 30, 2013 Share Posted December 30, 2013 Maybe not. On top of all that is mentioned above, accounts have to be kept and self assessment tax form has to be complete yearly. That writes off a few months rent to start with. You pay >£1000 a year to keep accounts and fill in a self assessment form? Link to comment Share on other sites More sharing options...
ccit Posted December 31, 2013 Share Posted December 31, 2013 I meant the tax you have to pay on the rental income, calculated after the self assessment form is completed. At 20% it does wipe off a significant part of the rent, even after the allowable expenses are taken into account. Link to comment Share on other sites More sharing options...
Cyclone Posted January 2, 2014 Share Posted January 2, 2014 Indeed, you can't avoid paying the tax man his share. That's after expenses though, so depending on circumstances it might not be as much as you suggest. Mortgage interest for example is an expense that can reduce the taxable profit. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted January 5, 2014 Share Posted January 5, 2014 HMRC's website offers a useful toolkit for landlords: http://www.hmrc.gov.uk/agents/toolkits/property-rental.pdf And for Property Hawk's tips, see http://www.propertyhawk.co.uk/index.php?page=magazine&id=521 Link to comment Share on other sites More sharing options...
Womerry2 Posted January 9, 2014 Share Posted January 9, 2014 Being a landlord is easy until you encounter a truly bad tenant - and there really is no telling how someone is going to behave. We have had no problems at all for 17 years, but are currently stuck with the tenant from hell who sees no real need to pay rent, has turned a lovely house into a disgusting hovel and refuses to leave, in spite of the fact that we gave him three month's notice. We have to go down the court route, which takes time and money. Meanwhile, the family friend who needs a place to live has had to go back to Afghanistan without being able to move his things in during his recent leave. The moral: It all depends on the tenant you get. So if are not in it for the money but care about the house/flat, be very, very careful indeed who you rent to and NEVER buy into any hard-luck-stories ... Link to comment Share on other sites More sharing options...
wadsleyblade Posted January 9, 2014 Share Posted January 9, 2014 Being a landlord is easy until you encounter a truly bad tenant - and there really is no telling how someone is going to behave. We have had no problems at all for 17 years, but are currently stuck with the tenant from hell who sees no real need to pay rent, has turned a lovely house into a disgusting hovel and refuses to leave, in spite of the fact that we gave him three month's notice. We have to go down the court route, which takes time and money. Meanwhile, the family friend who needs a place to live has had to go back to Afghanistan without being able to move his things in during his recent leave. The moral: It all depends on the tenant you get. So if are not in it for the money but care about the house/flat, be very, very careful indeed who you rent to and NEVER buy into any hard-luck-stories ... Wise words...... had that experience on more than one occasion! Link to comment Share on other sites More sharing options...
Guitargirl Posted May 6, 2014 Share Posted May 6, 2014 Hi Posting on behalf of a friend - He is looking at buying a property in Rotherham as a future investment and then renting it out. He is very new at this so can anyone advise on what things he ought to consider before going ahead. Suggestions appreciated. Thank you GG Link to comment Share on other sites More sharing options...
dan2802 Posted May 6, 2014 Share Posted May 6, 2014 He will need a buy to let mortgage and at least a 25% deposit. Talk to a financial advisor. Link to comment Share on other sites More sharing options...
ccit Posted May 6, 2014 Share Posted May 6, 2014 There are plenty of empty properties for rent in Rotherham. He should consider that if he cannot let it he will still have to pay the mortgage. He will also have to pay council tax even though it is unoccupied. There is always the possibility of getting bad tenants who wreck the place and don't pay their rent. Evicting them is not easy and the landlord has to abide by the law. Unless he uses an agency he will have to maintain the property himself. If he isn't very skilled at DIY or is too busy then he will have to employ tradesmen to do the work, the cost of that needs to be factored in. He will also need to complete self assessment for income tax (UK Property). The best advice you can give this person is not to do anything until he has studied every factor. Tell him to head off over to the Landlord Zone Forum where there is advice and horror stories. Link to comment Share on other sites More sharing options...
tlangdon12 Posted May 6, 2014 Share Posted May 6, 2014 They should talk to a big letting agent to find out what sort of properties are in demand. But they should be clear that they will not view any properties for sale through them; otherwise they will just tell them that they have exactly what they need! Link to comment Share on other sites More sharing options...
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