Is being a landlord that great?

[Lockhouse]

I've never used an agent and always trusted my instinct when it comes to tenants. Obviously I take references and credit checks but I've been renting out property on and off for 25 years and think I can spot a wrong 'un pretty quickly.

There are only three things I REALLY expect of my tenants;

1) Pay the rent on time
2) Look after my property
3) Don't be a nuisance to the neighbours

Just some of my tips;

Never get friendly with tenants, it's a business.

Sort problems and tenant queries asap, don't leave things hanging about. If you act lazy your tenants will assume they can act lazy as well.

Keep on top of the paperwork.

Do not leave anything open to discussion. Photograph the place before the tenants move in, give them a copy of the photos on a DVD and ask them to sign it's accurate and also sign the inventory. Do not let them move in until that inventory is signed.

Have a "burner" PAYG mobile that only your tenants have the number for. This means you can give the phone to an temporary agent or friend for a couple of weeks if you're abroad to deal with any issues and you not get hassled.

Never rent anywhere you wouldn't live in yourself.

Always be professional but always assume the worst of people.

HTH

[The Spartan]

Thanks that's really helpful, in terms of rental income what proportion do you lose to tax?

[northernladuk]

Thanks that's really helpful, in terms of rental income what proportion do you lose to tax?

<cough> pardon? <cough>

Next question please.

[vetran]

Thanks that's really helpful, in terms of rental income what proportion do you lose to tax?

You spend it on upkeep of the property/reinvesting in other BTL?

[Lockhouse]

Thanks that's really helpful, in terms of rental income what proportion do you lose to tax?

Your profit less 10% for wear and tear of course.

[Martin@AS Financial]

BTL is also a good way to supplement your pension as long as you are careful with what you buy. Latest research shows that the majority of landlords are actively planning to live off their rental income into retirement:

Majority of landlords expect to live off rental income into retirement | News | Mortgage Strategy

[vetran]

Your profit less 10% for wear and tear of course.

does that mean if major work such as recarpeting / redecorating cannot be claimed for?

[d000hg]

I've used 4 different agents in my local area and they've all been useless, so much so that I now manage my properties myself.

I used to spend as much time managing the agent as I do managing my tenants. Not to mention the extra void periods (and agent doesn't have a mortgage to pay, so they really don't care if it's empty for a month or two), charges for needless repairs, and tenancy set up charges.

Unless you know of a good letting agent, I'd advise managing the properties yourself...

Were you using agents to simply help you out while you were responsible? They don't do a great deal in that scenario - or get paid much. One would hope they'd be less crap with a managed service because they only get paid when the rent comes in!

I'm hoping to get into BTL next year, in terms of an investment has it been worthwhile in your experience?

Not for us. It would be hugely profitable if we didn't have gaps between tenants, have to redecorate 'cos they ruined it, etc... mortgage interest is £61pcm on a£60k house and rent ~400pcm which is a great yield.

It's pretty easy to look for houses up for let, and houses on the same street up for sale, and see if letting would only make sense on a cash purchase, or would still be profitable on a mortgage basis.

I'd suggest like with contracting, assume the place is empty 3 months a year.

[northernladuk]

does that mean if major work such as recarpeting / redecorating cannot be claimed for?

I am not so sure about that. I claimed a full redecoration of my flat due to it looking a bit dated early on. Modernisation wouldn't come under wear and tear and could be claimed as an investment to then let for more.

Didn't claim the carpets or any furniture over the period though. Oddly enough have had two tenants in that put their own carpet in the living room so never had to change one since.

[darmstadt]

Didn't claim the carpets or any furniture over the period though. Oddly enough have had two tenants in that put their own carpet in the living room so never had to change one since.

No wonder, with that nylon stuff you had down, everyone was walking around looking like Don King :-)