LisaT

We have decided to let our house out here in the UK possibly for long term. My query at the moment is a friend,s parents wants to let our house. So for the time being we don't need to use an agent and can save the fee. But I am not sure what our requirements are as a landlord and what the legal and gtax implications and requirements are.
Can anyone help at all?

NKSK version 2

I can't help in an official capacity but, unofficially, I would get a contract drawn up. I don't think that there is any need to get a solicitor involved (unless you know one who would check it through for a tenner) but it is important to get some ground rules set up for both parties. What both parties are responisble for is one important area which needs clarification. Notice might be another, agreed term is another (with renewal conditions). You never know when you might need the cash from the sale of the house and you don't want things to get messy.

Tax shouldn't be a problem. You can either go by the book and inform the tax office - in which case you need to ensure that your expenditure on the house is sufficiently high that you don't need to pay tax.

Or you just get the tenants to pay you cash and don't declare it. The problem with this, is that if things go sour with the tenants, they have you by the knackers and could really drop you in it.

My preference would be to get a contract drawn up and do things offically with the inland revenue. We've been renting our house out for 8 years now and have never had a tax liability on it.

Why don't you just write-off the first month's rental on getting a solicitor to draw up a contract and seeing a financial advisor about the tax implications?

Speargun

Good post and agree with the comments - it is much more preferable to let the place to somone you know - they are much more likely to look after it as you would your own house. Be prepared that whoever lives in your house though will not keep it as pristine as you would yourself and it is most unlikely you will get the property back in the same state you left it in.

I see plenty of properties each week that have been let out and then the vendor has decided to sell...they dont look half as good as before. Id second NKSK comments re making sure you draw up a short term tenancy contract this can be either 6 or 12 months - depending if you could get your prospective tenants to sign up to 12 months! which I guess would be preferable as you dont need the worry of not having a tenant if they decide to move out! This also gives both your tenants and yourself certain security and will ensure they dont get squatters rights!!
My advice would be to speak to a good letting agent in the area - dont sign up with them....but they deal with a whole hosts of tenants and will be able to give you good free advice!- and later if your tenants move out you will have a contact to sort another tenant out for you. Id definately get a solicitor to draw it up for you unless you can sneak a copy of one from the letting agent!!! good luck

Speargun

Oh and you WILL need a Gas safety certificate from a CORGI registered engineer!

micnic

and renew the certificate every year - and have correct insurance - most don't cover tenants.

Make sure you understand the new deposit scheme - failure to comply can be an expensive mistake. As well as dealing with the deposit properly you also must notify the tenants within 14 days of taking the deposit of where the deposit is held and various other details - failure to comply will result in a fine of 3 x the deposit.

JAJ

Absolutely no difference in the legal/tax implications.

But I would caution you against doing business with friends - high risk of losing both money and friendship.

isle

Hi,
I would suggest using an agent, it is a good idea as they do back ground checks to make sure the people have the money to pay the rent. Do spot checks on the house to make sure that they are looking after it. etc. It may cost you at first but pays in the long run. Also check your morgage company and remember to swop your insurance to a let property.
Good luck with what ever you choose.
Isle

ray2gill

Do ensure that you inform your house insurance company as they are very good at wriggling out of paying any claims should the need arise to make any claim.

Ensure that monthly payments are specified to be paid on a specific date every month.

Good luck

Techno Freak

We are also about to rent our house out, other things to do would be an inventory and I believe from Septemeber you also need electrical safety checks in addition to the gas ones.

There are some great websites about for provate landlords where you can order copied of tennancy documents etc.

Quite a few agents will do a one off fee type arrangement rather than say 10% monthly, ring around.

We were going to go it alone, but we have found an agent that will only charge £400 per change of tenant. That includes them advertising, and srotiung out a lot of the legal stuff.

Good luck - there is a lot to think about. Search for private letting associations first on the net for tons of info.