peejay Posted January 17, 2011 Report Share Posted January 17, 2011 friend of mine been left a house in a will. he wants to rent it out. wondered if theres any legal requirements he has to fulfill etc? Quote Link to comment Share on other sites More sharing options...
killer_pigeon Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) he will need gas and electrical safety certificates, landlords insurance, thermostatic mixer tap on the bath so the tenants cannot burn themselves and sue you. Then you just declare any earnings at the year end so the poor tax man gets his cut and thats it in a nutshell Make sure you get a year on year contract for everybody to sign to keep everything nice and legal. Edited January 17, 2011 by killer_pigeon Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted January 17, 2011 Report Share Posted January 17, 2011 Im guessing that any appliance must have a relevant safety certificate and make sure he gets a full inventory when people move in-most estate agents can do this for you.Insurance is a must and i think that there are advantages/disadvantages to renting furnished/unfurnished.Declaring any income would be a wise move. Quote Link to comment Share on other sites More sharing options...
berties Posted January 17, 2011 Report Share Posted January 17, 2011 killer pigeon has hit the nail on the head,but if there is a uni near by consider students the parents guarentor and you can split house per room and get more.no council tax,my mate as bought up houses to do this for his pension,it does work Quote Link to comment Share on other sites More sharing options...
AlistairB Posted January 17, 2011 Report Share Posted January 17, 2011 Safety certificates are a must, but i think (and i'll stand to be corrected) that the gas certificate is the only one you legally require. Specific Landlords insurance is required as well, letting an existing buildings or contents cover continue will not suffice and if you have an issue and have to make a claim, the insurer wont honour it. There are additional tax breaks available for renting fully furnished but they only cover wear and tear. Make sure he keeps every receipt regardless of how small for anything done to, or bought for, the property including a note of mileage done to visit the property. If you end up using an accountant for the tax return, their fees can be offset against the income. Losses made in any 1 year can also be offset against subsequent years profit. Quote Link to comment Share on other sites More sharing options...
jonno 357 Posted January 17, 2011 Report Share Posted January 17, 2011 I'm a landlord plus Hard wired smoke alarms Earth bonding PAT testing Bomb proof contract for wear and tear and breakages TAX? what's all that about. Not aware of that one ? Quote Link to comment Share on other sites More sharing options...
gsm1968 Posted January 17, 2011 Report Share Posted January 17, 2011 Before we bought the house we rented was through an agent. The constant visits by gas men, boiler men, pat testers etc was bordering on ****** nuisance. If anyone renting out a property has to comply with all this, it may be easier to work through an agent who is geared up for it. Unless you have the time to organise it all. Also problem tennants are then their problem. It does cost a bit, but could be well worth it in the end.With out a mortgage on the property he should be able to sacrifice a bit of the income for peace of mind. (IMHO) Quote Link to comment Share on other sites More sharing options...
al4x Posted January 17, 2011 Report Share Posted January 17, 2011 sell the house put the money in the bank is a far better option, so much less hastle than the buy to let fiasco, people used to make money mostly from the house prices going up now that is less likely its not worth it. Quote Link to comment Share on other sites More sharing options...
twitchynik Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) sell the house put the money in the bank is a far better option, so much less hastle than the buy to let fiasco, people used to make money mostly from the house prices going up now that is less likely its not worth it. If it was a sellers market. Unless it's a desirable property (or at least not a classic first time buyers one which will have a limited market at the moment) it'll be a hard sell. Letting it out isn't all that great either as you'll easily loose 10%-15% of the monthly rent on agents charges and as has been said you wouldn't want to manage all that unless you're experienced at it. Depending on property value and potential market, could look at selling it and re-investing in smaller, easier to let properties. You'll be able to pick up those first time buy type properties quite cheaply now and with either outright cash purchase or big deposit mortgages, the potential return could be higher both short term (in rent) and long term (if property growth returns). Either way, let through an agent Edited January 17, 2011 by twitchynik Quote Link to comment Share on other sites More sharing options...
al4x Posted January 17, 2011 Report Share Posted January 17, 2011 stick it on sealed bids in need of renovation and they still seem to be making silly money round here and selling like hot cakes. To me renting is a low return and a lot of aggravation I'd prefer to just keep doing up houses and selling them on so you know where you are and someone else doesn't trash your house, fail to pay the rent, move out with little notice leaving it empty etc etc Quote Link to comment Share on other sites More sharing options...
Cosd Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) I'm a landlord, as above for advice, and a little more food for thought: Look at the area and speak to reputable letting agents, obviously your market will dictate, but out of choice try to rent to professional/s if you can, students and people on benefits are a lottery as to the tenant quality you get, that doesn't mean there aren't good one!! Letting can be fruitful and it can be an absolute nightmare so you need to give yourself the best fighting chance. From my experience, and this applies to professionals, if you give them a nice place to live in they are prepared to pay a little more and they tend to look after it much better, give them a dive and it will attract the type that don't care and you will most probably get it back even worse. But these are just my experiences, I'm sure everyone will have a different take on how and what to do. I also prefer to rent unfurnished. Moving furniture isn't cheap and I find these tenants tend to stay longer; If they move in with a couple of black bags they can just as easily move out again. I have a deal on my properties where I don't pay the letting agents renewal fee's, so so I can entice my tenants to stay another year by not increasing the rent as this is much cheaper than the cost of getting the place ready for new tenants and paying the agent again, It does though mean I always pay the agent 10% every time instead of them reducing the cost year on year. Last tip, meet the tenants personally on the day they move in and do an inventory of everything....6 glasses, 4 plates, scratch on the fridge, clean walls, stain on the carpet, etc etc. Do it with the tenant or do it before they move in and go round with them ticking off your list; This way when you do it again as they move out there is little or no discrepancy. I tend to give them a call three or four times a year and just check all is ok, this way you build a little rapor and they tend to respect your property a little more. I always ask them to call me if they see something isn't quite right, this way I nip any problems in the bud rather than face huge bills fixing big neglected problems. Good luck! Edited January 17, 2011 by Cosd Quote Link to comment Share on other sites More sharing options...
decoying mad Posted January 17, 2011 Report Share Posted January 17, 2011 stick it on sealed bids in need of renovation and they still seem to be making silly money round here and selling like hot cakes. To me renting is a low return and a lot of aggravation I'd prefer to just keep doing up houses and selling them on so you know where you are and someone else doesn't trash your house, fail to pay the rent, move out with little notice leaving it empty etc etc or fill it with skunk Quote Link to comment Share on other sites More sharing options...
100milesaway Posted January 17, 2011 Report Share Posted January 17, 2011 I've had mixed results with letting property out.My advise would be to get an agent in as they will do an inventory of your property( taking photos etc)and more inmportently they will do a thorough credit rating check on potential renters.Also if you don't live near the property they are on site if any repairs need doing. Make a friend of the immediate next door neighbours and ask them to keep there eyes and ears open,after all it's in their own interest to have good neighbours. I only found out that my renters had freerunning rabbits living in my fully carpeted house from the neighbours, the letting agents wouldn't have found this out as they have to give notice of an inspection, but because it was nipped in the bud it wasn't a problem.Also get a good bond off them (try for more than a months rent if you can, in case they do a runner and at least one month up front.). Good luck. from Auntie Oh and steer clear of relatives. :blink: Quote Link to comment Share on other sites More sharing options...
Jaminzx7r Posted January 17, 2011 Report Share Posted January 17, 2011 Appologies if it's been mentioned already but dont you have to have a "home information pack" done for rental property aswell now. Quote Link to comment Share on other sites More sharing options...
malkiserow Posted January 17, 2011 Report Share Posted January 17, 2011 Join the residential landlords association for about £70 and have access to professional advice and all the latest legals and documents. Never do your own inventory or allow an agent to do it for you if you ever want to use it in court as you will ALWAYS lose. Courts only accept independent inventories (your agent is NOT independent). Get 1.1/2 months as a minimum deposit and use the proper schemes Agent make LOTS of mistakes and remember ultimately YOU are wholly responsible in law. ARLA means very little so go on local agent reputation. There is agrovation but it can still make good money.... do your sums first. Get good "landlords insurance" for buildings and workmen (in law they are "employees" is on your property) Buy "Tax Cafe" and read it well..... some very good advice in there. If you can, go visit the new or potential tenants in their current place before you sign the contract. Do your homework on evictions before you need it and get the tenants to sign the section 21 up front when they sign the agreement. Unless you like paying for PAT testing and having furniture stuffed on a regular basis, "unfurnished" is the way to go. Rental prices are, in general, very strong right now ATB Quote Link to comment Share on other sites More sharing options...
harrycatcat1 Posted January 17, 2011 Report Share Posted January 17, 2011 I'm a landlord plus Hard wired smoke alarms Earth bonding PAT testing Bomb proof contract for wear and tear and breakages TAX? what's all that about. Not aware of that one ? Jonno, is that a HIMO that your talking about as I do not have hard wired smoke alarms, pat testing, or earth bonding they sound like building regs requirements in HIMO's. For the record I do not use agents as they take 10 - 20% and are useless when the **** hits the fan, I use my own contracts that roll on after the first set period ie 6 or 12 months, do not have DSS as I have been ripped off with them in the past, at least you can chase a worker. Dont forget the deposit scheme as well. Quote Link to comment Share on other sites More sharing options...
malkiserow Posted January 17, 2011 Report Share Posted January 17, 2011 forgot to say........ YOu can use agents just to find a tenant for you for a fixed fee then you "manage" the property Quote Link to comment Share on other sites More sharing options...
Mungler Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) Renting cheap properties in student towns to middle class students is the only way to make money in the buy to let market now. Most people bought buy to lets with a view to getting enough rent to cover the mortgage on the property and pay any bills, with a long term view of making money from capital appreciation. That plan would work if you could buy cheap, interest rates stayed low, the property stayed "let" for the majority of the time and all the while the housing market was on the up. Now - interest rates *will* go up to slow inflation, house prices *will* fall over the next 2 years and so if you can cash out now and stick it in a pension linked to emerging economies then do that. Also, people have to realise that property prices can't keep going up indefinitely; ok, there will always be an upwards trend but house prices can't run much further away from peoples' actualy earnings and incomes. Last question - any chance of developing it? You know the usual side double storey extension or splitting the plot? Edited January 17, 2011 by Mungler Quote Link to comment Share on other sites More sharing options...
artschool Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) good luck to the op in sorting the correct answers from the dubious ones! i blame sarah beeny and her beeny boobies for turning everyone into a property expert. Look into my boobs, look into my boobs, the boobs, the boobs, not around the boobs, don't look around my boobs, look into my boobs, you're under. go and buy a rental property. Three, two, one... You're back in the room. Edited January 17, 2011 by artschool Quote Link to comment Share on other sites More sharing options...
malkiserow Posted January 17, 2011 Report Share Posted January 17, 2011 I thought Sarah was into property development and selling on. Importantly the OP said the house was left in a will so is presumably mortgage free. This makes a big difference. Quote Link to comment Share on other sites More sharing options...
artschool Posted January 17, 2011 Report Share Posted January 17, 2011 I thought Sarah was into property development and selling on. Importantly the OP said the house was left in a will so is presumably mortgage free. This makes a big difference. i find it hard to concentrate when those boobies are on screen so you are probably right. Quote Link to comment Share on other sites More sharing options...
amateur Posted January 17, 2011 Report Share Posted January 17, 2011 As there is (presumably) no mortgage involved, any rental income is a bonus, and probably a better return than trying to sell it and trying to earn interest on the cash proceeds. The likelihood is that house prices will improve over the long-term, so my advice would be to get a good managing agent who looks after the property and the legalities (albeit at a cost), and rake in whatever is left over, not forgetting to pay the tax-man at the end of the year. Then sell it when prices improve. Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted January 17, 2011 Report Share Posted January 17, 2011 Appologies if it's been mentioned already but dont you have to have a "home information pack" done for rental property aswell now. The powers that be insisted on this one so everyone paid for their certification and waited for the money to roll in ie 3/4 hips per day at £200/£300 per hip Then they changed their mind so all those that put themselves up to be hip certified lost out.... dontcha love the way government works..... Quote Link to comment Share on other sites More sharing options...
Doggone Posted January 17, 2011 Report Share Posted January 17, 2011 killer pigeon has hit the nail on the head,but if there is a uni near by consider students the parents guarentor and you can split house per room and get more.no council tax,my mate as bought up houses to do this for his pension,it does work Whole different set of rules for houses in multiple occupation, fireproofing, hardwired alarms, self-closing fire doors, inspections, etc etc etc. plus a whole lot more maintenance. Andy Quote Link to comment Share on other sites More sharing options...
paul hart Posted January 17, 2011 Report Share Posted January 17, 2011 (edited) I have quite a few house's that i rent and the odd one i have DHSS in and i dont have any problems at all. it down to you to check them out,and get a good bond. Edited January 17, 2011 by paul hart Quote Link to comment Share on other sites More sharing options...
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