Jimlad48
27-12-2011, 14:34 PM
Hello everyone,
I'm currently in the process of setting up my flat as a rental property, and wanted to ask a few questions.
Background - I own a leasehold (160 years) on a 2 bed 1930s ex local authority flat in London, which is managed by a building management company on behalf of the freeholders. I am about to move in with my fiance, and intend to rent the flat out for 3-5 years to recoup some money on it, and sell it once house prices have recovered in my area (still running a loss from the purchase).
I intend to let the flat part furnished, using some surplus furniture brought about from merging our two houses - this will probably be a double bed, single bed, dining room table, 4 chairs, fridge, , sofa, washing machine and maybe a couple of bookcases - nothing spectacular, but with plenty of space to allow people to move their own furniture in if they want.
My intent is to let to professional couples only, with no children or pets, or DSS allowed. My inclination, based on the experiences of others, is to only let to individuals for whom English is a first language, to prevent any 'misunderstandings'. I am erring towards being a private landlord and not using a letting agent as I will live nearby, and want a high level of control over who is actually in the house.
My general questions are below - I've done some searching and read a lot of threads here already, which has been very useful, but any comments on the questions below would be great.
1. The building is managed by a management company, who have responsibility for all building issues outside the direct flat, and for the provision of the heating & hot water - heating is on for 6 months of the year, and is run from a central boiler. If the hot water fails, who is responsible for tenant issues though - I ring the management company directly at present - can I set out to tenants those areas for which the management company is responsible for resolving, or do I still need to be the go between? Also, if the heating / hot water fails, and it is the responsibility of the company to fix, who is liable for the cost of provision of emergency accommodation if the property is rendered uninhabitable? Is it myself as the landlord, even though I don't have access to the boilers, or is it the company which manages the building services on behalf of the freeholder?
2. Do people think it is worth being a private landlord from the word go, or is it better to use a letting agent? My instinct says no, but I'm open to persuasion!
3. Is there any value in joining a landlord association - e.g. London Landlords assocation, and does it bring any real benefits, or is it a nice to have, not need to have?
4. Can I clarify - mortgage payments, service charge payments etc are tax exempt for the purposes of determing tax liability? E.g. if I earn £12000 in a year, but £9000 of that is a mortgage payment, and £1000 other expenses, I only pay tax on the £2000 balance?
5. What are the best sites to advertise flats on as a private landlord in London -I've seen gumtree and craigslist, but am not sure whether this will bring hordes of aussies and not a nice professional couple? Is there anywhere worth paying for?
6. As its a 2 bed flat, if the term of the tenancy is to a couple only, and I discover a third person in the spare room (which is big enough for a double bed), then what happens - can they be evicted for breach of the tenancy?
7. This may sound odd, but with white goods, what is liability for providing working goods? The current washing machine works, but due to a bug, needs a reset to proceed from the rinse cycle to the rest of the programme - its fully workable if you know what to do. If the tenants are given instructions on how to work it, is this acceptable, or do they need one which works without the reset?
8. In terms of paperwork, I think I need mortgage company approval, energy performance certificate, gas certificate for the hob (only gas supply in the house run by the occupants). Is there anything else I need to get? (Local authority website is spectacularly useless on this bit!)
9. Finally, are there any books or other things definitely worth buying as guides?
I'm currently in the process of setting up my flat as a rental property, and wanted to ask a few questions.
Background - I own a leasehold (160 years) on a 2 bed 1930s ex local authority flat in London, which is managed by a building management company on behalf of the freeholders. I am about to move in with my fiance, and intend to rent the flat out for 3-5 years to recoup some money on it, and sell it once house prices have recovered in my area (still running a loss from the purchase).
I intend to let the flat part furnished, using some surplus furniture brought about from merging our two houses - this will probably be a double bed, single bed, dining room table, 4 chairs, fridge, , sofa, washing machine and maybe a couple of bookcases - nothing spectacular, but with plenty of space to allow people to move their own furniture in if they want.
My intent is to let to professional couples only, with no children or pets, or DSS allowed. My inclination, based on the experiences of others, is to only let to individuals for whom English is a first language, to prevent any 'misunderstandings'. I am erring towards being a private landlord and not using a letting agent as I will live nearby, and want a high level of control over who is actually in the house.
My general questions are below - I've done some searching and read a lot of threads here already, which has been very useful, but any comments on the questions below would be great.
1. The building is managed by a management company, who have responsibility for all building issues outside the direct flat, and for the provision of the heating & hot water - heating is on for 6 months of the year, and is run from a central boiler. If the hot water fails, who is responsible for tenant issues though - I ring the management company directly at present - can I set out to tenants those areas for which the management company is responsible for resolving, or do I still need to be the go between? Also, if the heating / hot water fails, and it is the responsibility of the company to fix, who is liable for the cost of provision of emergency accommodation if the property is rendered uninhabitable? Is it myself as the landlord, even though I don't have access to the boilers, or is it the company which manages the building services on behalf of the freeholder?
2. Do people think it is worth being a private landlord from the word go, or is it better to use a letting agent? My instinct says no, but I'm open to persuasion!
3. Is there any value in joining a landlord association - e.g. London Landlords assocation, and does it bring any real benefits, or is it a nice to have, not need to have?
4. Can I clarify - mortgage payments, service charge payments etc are tax exempt for the purposes of determing tax liability? E.g. if I earn £12000 in a year, but £9000 of that is a mortgage payment, and £1000 other expenses, I only pay tax on the £2000 balance?
5. What are the best sites to advertise flats on as a private landlord in London -I've seen gumtree and craigslist, but am not sure whether this will bring hordes of aussies and not a nice professional couple? Is there anywhere worth paying for?
6. As its a 2 bed flat, if the term of the tenancy is to a couple only, and I discover a third person in the spare room (which is big enough for a double bed), then what happens - can they be evicted for breach of the tenancy?
7. This may sound odd, but with white goods, what is liability for providing working goods? The current washing machine works, but due to a bug, needs a reset to proceed from the rinse cycle to the rest of the programme - its fully workable if you know what to do. If the tenants are given instructions on how to work it, is this acceptable, or do they need one which works without the reset?
8. In terms of paperwork, I think I need mortgage company approval, energy performance certificate, gas certificate for the hob (only gas supply in the house run by the occupants). Is there anything else I need to get? (Local authority website is spectacularly useless on this bit!)
9. Finally, are there any books or other things definitely worth buying as guides?