JoeE30

right just a quick story, a friend of mine wants to rent out her property.

Thing is she is certain that she dont need to ask for deposit, or have a contract or even change any of the bills in to the new tenants name as he is a distant friend.......She just is gona ring him every month to tell him how much he owes this month.......and he will drop a envalope through the door with the money in...

I cant get my head round this as it could all go very very wrong.......

Whats your stories for the people who rent out properties.....

Iain Mac

Not taking a deposit is nuts, even if she does know him. If he bails out leaving damage or unpaid rent it will be hard to get cash off him, but the landlords deposit protection scheme would apply to any deposit she takes in England.
As for keeping the bills in her own name - even bigger nuts! Guess who the electric, gas etc will chase for unpaid bills?
In Scotland you must register as a landlord before letting or you are breaking the law - I think it applies in England too.
Assuming she has a mortgage, she needs the lender's written permission before letting.
Her own insurance won't apply while she has let to a tenant.
Without a contract she won't be able to prove the property is let so can't offset mortgage interest and cost of repairs against income generated.

lardypants

edited as his makes more sence lol

Markb_s1

i rent out one of my flats.. to be honest i'm starting to think it's nto worth it.
i went fully managed as i don't want anythign to do with the tenants.. especially if stuff goes wrong.
by the time the agents have had their fees (12%) and kept some cash back in case of emergency, i ended up with about 3500 out of 5400 for 6 months the tenant paid up front. then you're supposed to pay capital gains on this too apparently at 40% which doesn't leave much.. especially as i'm forking out 840 a month and 200 hundred a month for mortgage and maintenance charges (cleaning/decoration of communal areas and general building maintenanceetc) respectively.

personally i'd suggest that renting out your property is best done if you own the whole thing outright.. as at the moment it's actually costing me money. admittedly i've retained the property which is now worth roughtly 40k more than when i bought it 18-24 months ago, but right now i'm sooo tempted to sell it up and concentrate on the other 2 it's almost unreal!


as far as contracts, inventory, deposit, check in/check out go i'd definitely not do it myself. lots of legalities involved and i believe that regulations now state that the deposit has to be held by a neutral 3rd party (hence why the agents have my tenants)hope that's of some help.i'm sure someone better qualified to advise will be along shortly.

Dan

MAte, if she wants to do that thens she's clearly fucking nuts and either loves the bloke or just wants to get ripped off!

On my first flat I had a proper managing agent who I paid a % of the rental income every month and I still got endless shit!

All be it my tennants were fucking DSS scum (not saying all DSS are scum but these 2 took the piss) they still fucked the place over and cost me money! Not to say I didn't make a profit in the the first year, but now doing it myself, I;ve let it to a girl I employ, and done the lease myself.

I didn't take a deposit but then she knows if she fucks the rent up, she's not only jobless and homeless, the only way she'll fuck the rent up is if I don't pay her!

Please urge your mate to at least do things properly and get everything signed and in writing, just remember, you know who your friends are when monies involved!

diesel dog

Months rent as a deposit, month in advance, they pay the bills AND a contract. Friend or not. You usually find out out that its the so called friends that fuck you! Oh and an Inventory, before and after.

Alps Pacino

You rent a property out and declaire it they tax you on the rent then take a percentage of what ever money you profit on the actual property.

Markb_s1

don't i know it!

Crowder

i rent a room and i took a months deposit. no deposit is fucking insane how does someone like this even own a property? Deposit, written contract. legally sealed/approved even better. stop the bills urself its there problem to ring the suppliers!

Crowds.

Iain Mac

If the room is in your own property that you live in yourself there are tax advantages that you don't get when renting another property - the "Rent A Room" scheme details are available on http://www.direct.gov.uk/en/MoneyTax...ome/DG_4017804