Renting Out Your Home

[Andy74]

I am currently considering a job overseas and as I'm likely to come back in 3 to 4 years would want to keep the family home here.

Anyone done similar and can give me any tips?

My mortgae is on the high side and I'm not even sure the rent I could expect would cover it all. My mortgate is still a lot less than the value of the house but having a look at listings they all appear to be cheaper than an existing mortgage just now.

Also, have people done the listing/management themselves or used agents who seem to charge about 20% of your minimal income anyway!?

One worry I have is gaps in getting people in and having to cover it as well as my rental overseas. Any ways round that ie for a higher fee do any agents take the risk for you on that?

Any tips on this subject would be appreciated!

[blackpoolhibs]

I would never rent my home out again. When we had our hotel, we bought a house in the nice part of Blackpool. We also bought somewhere in tenerife, a place we went for the winter. We rented our house out in Blackpool, the rent paid the mortgage, and at the start everything was fine. The minute she found out we were abroad, she stopped paying the rent. The trouble you have to go through legally to get her out takes about 6-8 months. I ended up evicting her illegally. I waited until she went to work, and emptied everything she owned into storage, and changed the locks. She then took me to court, civil court. And she was awarded just over £2k and there was another £3k in costs. And this tenant was from an agency. I know there are many who rent out their homes and have no bother, but if you are going abroad like we were, you need to know everything is fine. I don't think you could rest easily knowing it could all go tits up at any moment.

[Hibbyradge]

I rent flats through Dove Davies.

You should get landlords' insurance too.

[Toaods]

I would never rent my home out again. When we had our hotel, we bought a house in the nice part of Blackpool. We also bought somewhere in tenerife, a place we went for the winter. We rented our house out in Blackpool, the rent paid the mortgage, and at the start everything was fine. The minute she found out we were abroad, she stopped paying the rent. The trouble you have to go through legally to get her out takes about 6-8 months. I ended up evicting her illegally. I waited until she went to work, and emptied everything she owned into storage, and changed the locks. She then took me to court, civil court. And she was awarded just over £2k and there was another £3k in costs. And this tenant was from an agency. I know there are many who rent out their homes and have no bother, but if you are going abroad like we were, you need to know everything is fine. I don't think you could rest easily knowing it could all go tits up at any moment.


...you cannae get Mixu out either...:duck:

[blackpoolhibs]

...you cannae get Mixu out either...:duck:

If all it would cost was £5k, it would be worth every penny. :wink:

[Jack]

Many moons ago I let out a house to a few, female, students for a year. I already knew them. It worked out fine. I think Edinburgh Uni have, or used to have, an agency of their own.

I had a friend, more recently, that that had his house wrecked by agency tenants.

I suppose the majority must work out fine otherwise folk wouldn’t do it.

[blackpoolhibs]

Many moons ago I let out a house to a few, female, students for a year. I already knew them. It worked out fine. I think Edinburgh Uni have, or used to have, an agency of their own.

I had a friend, more recently, that that had his house wrecked by agency tenants.

I suppose the majority must work out fine otherwise folk wouldn’t do it.


:agree: I agree, most will go without any problems, i just had a bad one and it put me off ever doing it again.

[col02]

Few tips for renting a house out from my own experience is make sure the house is totally unfurnished save for the white goods, have the estate agent deal with everything even though it means them taking circa 15% of the rental income per month and make sure the decor is all magnolia as that is seemingly the way to go. We have had tenants in our future family home for the past year now and not heard a peep wrong about them. We got totally nailed on the rental costs though as house was bought just before the market went tits up meaning from an initial rental cost 0f £850 per month we eventually had to settle for £725 per month as the house had been vacant for best part of 3 months.

[Brando7]

Do you not have to pay more tax as it is classed as a 2nd income :confused:

Sure my sister in law has been told that when she was renter her house out.

[CropleyWasGod]

Do you not have to pay more tax as it is classed as a 2nd income :confused:

Sure my sister in law has been told that when she was renter her house out.

You only pay tax if you make money. If the income is more than the mortgage interest (ie not the capital) and any other related expenses (insurance, agent fees etc), then you have to pay tax on the profit.

Another point:- if you rent it out furnished, you also get an allowance of 10% of the rent.

[Andy74]

You only pay tax if you make money. If the income is more than the mortgage interest (ie not the capital) and any other related expenses (insurance, agent fees etc), then you have to pay tax on the profit.

Another point:- if you rent it out furnished, you also get an allowance of 10% of the rent.

Interesting, thanks. I'll probably be making a loss, though maybe not on the interest and will probably leave it furnished as don't fancy having to store all the furniture.

Also looks as though I'll have to go for the full management as although we have family close I couldn't be bothered with having to deal with stuff from that far away.

Big worry for me still is having long gaps with no-one in it as I couldn't afford to pay the full mortage as well as the rental on place overseas.

[CropleyWasGod]

Interesting, thanks. I'll probably be making a loss, though maybe not on the interest and will probably leave it furnished as don't fancy having to store all the furniture.

Also looks as though I'll have to go for the full management as although we have family close I couldn't be bothered with having to deal with stuff from that far away.

Big worry for me still is having long gaps with no-one in it as I couldn't afford to pay the full mortage as well as the rental on place overseas.

There are some agencies.... forget their names, Google 'em,... who will guarantee a set amount of income per month, whether the property is let or not. Obviously, it's a lower amount than the market rate, but it might be enough to keep you even.

[ancienthibby]

I am currently considering a job overseas and as I'm likely to come back in 3 to 4 years would want to keep the family home here.

Anyone done similar and can give me any tips?

My mortgae is on the high side and I'm not even sure the rent I could expect would cover it all. My mortgate is still a lot less than the value of the house but having a look at listings they all appear to be cheaper than an existing mortgage just now.

Also, have people done the listing/management themselves or used agents who seem to charge about 20% of your minimal income anyway!?

One worry I have is gaps in getting people in and having to cover it as well as my rental overseas. Any ways round that ie for a higher fee do any agents take the risk for you on that?

Any tips on this subject would be appreciated!

You really should call your big pal, Fred the Shred, as he knows all about leaving a property in Edinburgh to the whim of local circumstances. If it's good enough for him, it's surely good enough for his acolytes??:devil:

[ancient hibee]

Try D J Alexander in Dundas Street.They do lots of rentals to corporate customers which cuts the risk of damage but don't expect to get the house back in the same shape after all someone has been living in it for 4 years(hopefully!)If the rental does not cover expenses it might be worth investigating whether you can offset losses against any taxes you may still be liable for in this country.

[CropleyWasGod]

Try D J Alexander in Dundas Street.They do lots of rentals to corporate customers which cuts the risk of damage but don't expect to get the house back in the same shape after all someone has been living in it for 4 years(hopefully!)If the rental does not cover expenses it might be worth investigating whether you can offset losses against any taxes you may still be liable for in this country.

You can't, unless it's other property income.

[Speedy]

Try D J Alexander in Dundas Street.They do lots of rentals to corporate customers which cuts the risk of damage but don't expect to get the house back in the same shape after all someone has been living in it for 4 years(hopefully!)If the rental does not cover expenses it might be worth investigating whether you can offset losses against any taxes you may still be liable for in this country.

I heard he gets people in the hiz-ous :duck:

[Dashing Bob S]

"Make sure they look after the double glazing." -Sir Fred.