Jimbothebarbarian
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Registered: 19th Apr 07
Location: Cumbria..........drunk..
User status: Offline
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Possibly considering buying a flat or terrace house as a buy to let. For a bit of a pension boost. Wondered if anyone on here is doing the same? Just after info, for example how you're effected tax wise, fire, insurance, maintenance so on and so forth.
I've no doubt it's not as easy as it first would seem but any genuine knowledge would be greatly appreciated.
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
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Minimum 25% deposit for most (if not all) lenders to five you a BTL mortgage.
Annual gas safety cert for the property is needed by law (if it has gas of course)
Landlord buildings insurance needed for mortgage to be agreed
You pay tax on all your income, but you can offset expenses such as mortgage interest (great if you have an interest only btl mortgage), key cuttings, decorating equipment etc. All done through self assessment and its quite straight forward.
A tip of mine is to keep all receipts but also make a simple spreadsheet to calculate the expenses as you spend them.
My properties are managed by a local agent for a 9% charge of the rent. They take care of the money collection and an inspection every quarter.
[Edited on 16-04-2015 by Aaron]
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Jimbothebarbarian
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Registered: 19th Apr 07
Location: Cumbria..........drunk..
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Thanks for the information, very helpful.
How do you find the agents to deal with? Is it worth the 9% hit for an easier life? Just out of interest how many properties do you have?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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My properties (4 flats in two properties that we own the freehold of) are managed by my missus and myself and we don't really have any issues at all; they're not particularly time consuming once the renovation work was complete and all income generated, we put through my missus' earnings. Her main PAYE tax code has been changed to account for the second income but we give everything over to an accountant once a year. Accountant charges £250 and so far, because of the level of renovation work, we've not paid a penny in extra tax.
Whilst every penny is accounted correctly, we're not 100% above board with the running of the flats-we haven't bothered with bonding the deposits but then we ask for a lower level of deposit than most. We're not intrusive and don't often inspect them etc. but they're very simple to look after now anyway. We do have issues with tenants, mainly falling into arrears but in general, when we've been good and set up a payment plan, they've all stuck to it and paid us back in full with gratitude for being lenient - it's only bitten us once for about £500 when a friend of the family moved in - that would be one piece of advice, don't rent to friends or family.
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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It's not as lucrative as you think, you can only claim against tax on the interest on the mortgage, not the lump sum itself, tentants are usually annoying as fuck and want you to go and mow their lawns. Don't let Rushbone and Rathbrook in Luton manage it they are grade A class one cunty wankers who do not work for you but work for the tentant - forgot to add with the rudest staff in the world who think it's okay to talk to you like I would speak to a 5 year old at work.
[Edited on 16-04-2015 by pow]
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline
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quote:
Originally posted by Jimbothebarbarian
Thanks for the information, very helpful.
How do you find the agents to deal with? Is it worth the 9% hit for an easier life? Just out of interest how many properties do you have?
I use a company called Reeds Rains as the management, who i think are a national estate agent. I've bought two properties via them, and i thought they were pretty good. You'll find that most large-ish highstreet estate agents have a lettings managemnt arm, but i think the usual fee is more like 12%
Personally speaking i dont mind the 9% for the peace of mind that they're dealing with everything for me, however, as you can see above...managing it yourself also works if you have the time.
My philosophy is to get good tenants in my properties and keep them in. Because of this, i offer my tenants rent discounts for the month or Decemner of January (their choice). The tenant in my mortgage free flat gets pretty much a free month, and the ones in my house with a small mortgage just cover the cost of my mortgage payment for their cheaper month.
Another thing i do is put together a welcome hamper for when they arrive. Most recently i spent about 15 quid on stuff like tea bags, crisps, biscuits and cleaning stuff and popped it all in a picnic basket type thing. Turns out that they loved it.
[Edited on 16-04-2015 by Aaron]
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline
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Oh, and another thing i do is often get someone to act as a spy during the viewings. Most recently i got a close friend to act as an interested tenant, who went along to the same viewing that the eventual "winner" of the property was part of. This is just to make sure that the tenants are nice...and that the agents are flogging me a dead donkey.
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spencer88
Member
Registered: 6th Oct 08
Location: cornwall
User status: Offline
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quote:
Originally posted by RichR
My properties (4 flats in two properties that we own the freehold of) are managed by my missus and myself and we don't really have any issues at all; they're not particularly time consuming once the renovation work was complete and all income generated, we put through my missus' earnings. Her main PAYE tax code has been changed to account for the second income but we give everything over to an accountant once a year. Accountant charges £250 and so far, because of the level of renovation work, we've not paid a penny in extra tax.
Whilst every penny is accounted correctly, we're not 100% above board with the running of the flats-we haven't bothered with bonding the deposits but then we ask for a lower level of deposit than most. We're not intrusive and don't often inspect them etc. but they're very simple to look after now anyway. We do have issues with tenants, mainly falling into arrears but in general, when we've been good and set up a payment plan, they've all stuck to it and paid us back in full with gratitude for being lenient - it's only bitten us once for about £500 when a friend of the family moved in - that would be one piece of advice, don't rent to friends or family.
Well hopefully your tenants don't find out about the TDS and take you to court.
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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Also if you go it alone, stick to your gut instincts - about 18 months ago, I decided on a first come, first served basis after we had 24 applicants for the flat - the woman who turned up first gave me a bad feeling and she ended up messing us around and moving out 3 weeks later; the guy we got next was great and in for the last 18 months without an issue-even lined up a replacement when he handed in his notice.
[Edited on 16-04-2015 by RichR]
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Jimbothebarbarian
Member
Registered: 19th Apr 07
Location: Cumbria..........drunk..
User status: Offline
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Thanks again for all the input. It's really is very helpful!
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Generation
Member
Registered: 7th Jul 09
Location: Essex
User status: Offline
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I rent one property through an agent (Beresfords) they charge a percentage and do quarterly checks.
Not had a simgle issue in last 4/5 years same people have had it. I go 12 months contracts at a time. Although I have to pay each time a new contract is written up (even if it's exactly the same) so bare that in mind
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spencer88
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Registered: 6th Oct 08
Location: cornwall
User status: Offline
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quote:
Originally posted by Generation
I rent one property through an agent (Beresfords) they charge a percentage and do quarterly checks.
Not had a simgle issue in last 4/5 years same people have had it. I go 12 months contracts at a time. Although I have to pay each time a new contract is written up (even if it's exactly the same) so bare that in mind
This is a load of shit and landlords should not be doing it.
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Pay close attention to tenant references and particularly references from previous landlords for a tenant.
The guy in one of our BTLs looked great on paper, but he is consistently just under 2 months in arrears for rent (2 months is usually the level where you can take action), which suggests he knows how to play the system and has done it before. Yet his previous landlord didn't mention any problems.
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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I've found quite a few landlord's references to not be worth the paper they're written on.
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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I had to pay for a reference, when my lot paid up for a year up-front. It's rediculous
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VrsTurbo
Premium Member
Registered: 8th Jun 10
User status: Offline
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quote:
Originally posted by pow
I had to pay for a reference, when my lot paid up for a year up-front. It's rediculous
 Year up front... Going to be a grow house in 3months time
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Generation
Member
Registered: 7th Jul 09
Location: Essex
User status: Offline
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quote:
Originally posted by spencer88
quote:
Originally posted by Generation
I rent one property through an agent (Beresfords) they charge a percentage and do quarterly checks.
Not had a simgle issue in last 4/5 years same people have had it. I go 12 months contracts at a time. Although I have to pay each time a new contract is written up (even if it's exactly the same) so bare that in mind
This is a load of shit and landlords should not be doing it.
What's a load of shit? Making longer contracts? Not at all, nobody is forcing the tenant to sign for a longer contract, they can leave. It's my property, I can do as I please with it
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Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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quote:
Originally posted by spencer88
quote:
Originally posted by Generation
I rent one property through an agent (Beresfords) they charge a percentage and do quarterly checks.
Not had a simgle issue in last 4/5 years same people have had it. I go 12 months contracts at a time. Although I have to pay each time a new contract is written up (even if it's exactly the same) so bare that in mind
This is a load of shit and landlords should not be doing it.
I've got one of mine rented out through Reeds Rains. If i was to rent private the rent would be cheaper. However, i had one cuntish tenant who didn't want to pay the rent who has ruined it for anyone else. I pay Reeds 10% which i've just added onto the rent. Like it or lump it but the day it went up for rent, i had 4 viewings and it was first come with the deposit passing the checks who got it.
The current tenant wanted to sign up for 12 months with the option to break the contract for a fee. Reeds advised i wouldn't see that fee so it was sign up for 12 months or move out.
I've had to pay Liverpool council £400 for a rental license. i'll be adding this into the rent.
It's an investment for me, i'm not out to make friends in the process. If you don't like my charges or rules, go and buy your own property.
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spencer88
Member
Registered: 6th Oct 08
Location: cornwall
User status: Offline
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quote:
Originally posted by Andrew
quote:
Originally posted by spencer88
quote:
Originally posted by Generation
I rent one property through an agent (Beresfords) they charge a percentage and do quarterly checks.
Not had a simgle issue in last 4/5 years same people have had it. I go 12 months contracts at a time. Although I have to pay each time a new contract is written up (even if it's exactly the same) so bare that in mind
This is a load of shit and landlords should not be doing it.
I've got one of mine rented out through Reeds Rains. If i was to rent private the rent would be cheaper. However, i had one cuntish tenant who didn't want to pay the rent who has ruined it for anyone else. I pay Reeds 10% which i've just added onto the rent. Like it or lump it but the day it went up for rent, i had 4 viewings and it was first come with the deposit passing the checks who got it.
The current tenant wanted to sign up for 12 months with the option to break the contract for a fee. Reeds advised i wouldn't see that fee so it was sign up for 12 months or move out.
I've had to pay Liverpool council £400 for a rental license. i'll be adding this into the rent.
It's an investment for me, i'm not out to make friends in the process. If you don't like my charges or rules, go and buy your own property.
So it is ok for Estate Agents etc to charge for each new contract, even though it is the same contract (or as near as bar dates)?
Maybe a small admin fee but not the fucking prices they charge.
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Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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I do understand where you are coming from Spencer but along the line everyone is taking a cut. I've gone though Reeds as i haven't the time to be banging on doors asking for rent money as well as doing quarterly checks.
Out of interest, what do you pay for these renewal contracts?
[Edited on 25-04-2015 by Andrew]
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Generation
Member
Registered: 7th Jul 09
Location: Essex
User status: Offline
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Again, they can charge what they like, they're a business.
Asking as there is demand then they'll carry on. There is demand to run things through them as so many tenants can't be trusted.
Do you expect me to have a potentially fucked property? Or should I cover my own back?
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Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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Mine has come up for renewal.
Tenant is to pay £100 renewal which personally i think is quite reasonable.
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luciaadr
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Registered: 11th Aug 04
Location: Bexleyheath, Greater London
User status: Offline
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Just let it go onto a rolling contract. If they want out, they give you the required notice. If you want them out, same applies, or you can apply for eviction without having to prove wrongdoing.
Easier on admin, and less (no) fees
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Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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It's a long term investment, i don't want to sell. I'm more than happy to tie the tenant into a 12 month contract.
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MikeF86
Member
Registered: 14th Feb 15
User status: Offline
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Some bullshit in here......
[Edited on 19-05-2015 by MikeF86]
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