Becoming a landlord

[Rick Sanchez C-137]

So, I bought a semi detached 3 bed house in a new estate in my home town, about 3.5 years ago. 

 

My mum passed away in April so I've been living in the house I grew up in since then, and decided to stay there. My other house is on the market. My sister and I will make arrangements between ourselves over the family home so there is no issue there.

 

There has been a bit less interest than I had hoped/imagines/expected in my house, given its location and how new it is. I had never considered renting as I couldn't be bothered with the hassle, but someone I know and trust has put me in touch with a man who is looking to rent a house in my town for 4-5 years while his daughter finishes school nearby.

 

So it may or may not happen, but I'm currently trying to figure out if it would be worth it for me to rent to him, then sell in 4-5 years if the market was a bit more active.

 

I have been trying to so a bit of reading but with mixed results. My main concern is hidden charges, income tax and child maintenance people.

 

I pay child maintenance as a percentage of my income (have my daughter 3 days a week, so it's not a huge amount). Would the rental income be considered in this?

 

What constitutes rental 'net income'? Do I deduct my mortgage as an expense? Or just the interest? And how is that calculated?

 

I would have no problems paying the appropriate tax and am not looking to dodge anything, merely see what I would owe and if it would be sustainable/worthwhile for 4-5 years.

 

[tokyojoe]

So, I bought a semi detached 3 bed house in a new estate in my home town, about 3.5 years ago. 

 

My mum passed away in April so I've been living in the house I grew up in since then, and decided to stay there. My other house is on the market. My sister and I will make arrangements between ourselves over the family home so there is no issue there.

 

There has been a bit less interest than I had hoped/imagines/expected in my house, given its location and how new it is. I had never considered renting as I couldn't be bothered with the hassle, but someone I know and trust has put me in touch with a man who is looking to rent a house in my town for 4-5 years while his daughter finishes school nearby.

 

So it may or may not happen, but I'm currently trying to figure out if it would be worth it for me to rent to him, then sell in 4-5 years if the market was a bit more active.

 

I have been trying to so a bit of reading but with mixed results. My main concern is hidden charges, income tax and child maintenance people.

 

I pay child maintenance as a percentage of my income (have my daughter 3 days a week, so it's not a huge amount). Would the rental income be considered in this?

 

What constitutes rental 'net income'? Do I deduct my mortgage as an expense? Or just the interest? And how is that calculated?

 

I would have no problems paying the appropriate tax and am not looking to dodge anything, merely see what I would owe and if it would be sustainable/worthwhile for 4-5 years.

You can deduct the mortgage interest not the capital repayments for tax purchases. Get it all checked though as the law has been changed recently.

[Hades]

Sell the house and enjoy not being a parasite.

[Captain Turdseye]

Slum landlord. If you had any morality you’d hand over the deeds for the house to some refugees.

[Rick Sanchez C-137]

Sell the house and enjoy not being a parasite.

 

I'm tying to sell the house. It's been up since July. And I wouldn't be a parasite, I would be helping this man and myself. It's a long story but he's been through some shit and if I could charge him less than he'd be paying elsewhere then everyone is a winner. As detailed above it's not about making money off someone, it's more a tactical way to potentially tread water until there are more people buying in the area. It's costing me £500+ a month to have an empty house. Doesn't make much sense, does it?

[Rico1304]

I'm tying to sell the house. It's been up since July. And I wouldn't be a parasite, I would be helping this man and myself. It's a long story but he's been through some shit and if I could charge him less than he'd be paying elsewhere then everyone is a winner. As detailed above it's not about making money off someone, it's more a tactical way to potentially tread water until there are more people buying in the area. It's costing me £500+ a month to have an empty house. Doesn't make much sense, does it?

Rachman

[Priory Doctor]

Give Brendan Rodgers a ring, he will know what to do.

[Em City]

Ha, knew Hades would be all over the OP as soon as I sae the thread title.

 

Are you in the UK or the Republic, ROTQ?

[Rick Sanchez C-137]

Look, just to be clear, if I can sell this and buy my sisters half of the family home I could be close to mortgage free, or have a very small mortgage. That's the dream. That's the aim. But I can't drop the price much lower. It's already the cheapest house in the estate. So all i'm trying to do is not be strangled with unnecessary debt while I can avoid it. And My house is up for sale, not rent. But I was approached by a mutual friend with this proposal.

[Rick Sanchez C-137]

In the UK.

[El Rojo]

Look, just to be clear, if I can sell this and buy my sisters half of the family home I could be close to mortgage free, or have a very small mortgage. That's the dream. That's the aim. But I can't drop the price much lower. It's already the cheapest house in the estate. So all i'm trying to do is not be strangled with unnecessary debt while I can avoid it. And My house is up for sale, not rent. But I was approached by a mutual friend with this proposal.

 

That's the most Mafia line that's ever been posted on TLW.

[Rick Sanchez C-137]

That's the most Mafia line that's ever been posted on TLW.

 

Haha! He made me an offer I can't refuse (without chatting to the GF first) *italian gestures*

[Hades]

 

Part of Mao Zedong's land reform during the late phase of the Chinese Civil War[1] and the early People's Republic of China[2] was a campaign of mass killings of landlords[3] in order to redistribute land to the peasant class and landless workers.[9] It resulted in millions of deaths. Those killed were targeted on the basis of class rather than ethnicity, so terming the campaign genocide is, sensu stricto, incorrect. The neologism "classicide" is more accurate.[4] Class motivated mass killings continued through the almost 30 years of social and economic transformation in Maoist China resulting in the deaths of 90% to 95% of the what used to be 15 million members of the landlord class in China according to Harry Wu.[4]

[Em City]

In the UK.

 

Oh right.

 

Fuck off then.

[Rick Sanchez C-137]

Oh right.

 

Fuck off then.

 

Why is that relevant?

[Rick Sanchez C-137]

 

 

Part of Mao Zedong's land reform during the late phase of the Chinese Civil War[1] and the early People's Republic of China[2] was a campaign of mass killings of landlords[3] in order to redistribute land to the peasant class and landless workers.[9] It resulted in millions of deaths. Those killed were targeted on the basis of class rather than ethnicity, so terming the campaign genocide is, sensu stricto, incorrect. The neologism "classicide" is more accurate.[4] Class motivated mass killings continued through the almost 30 years of social and economic transformation in Maoist China resulting in the deaths of 90% to 95% of the what used to be 15 million members of the landlord class in China according to Harry Wu.[4]

 

 

I am already counting my lucky stars you are not in charge of anything Hades, there's really no need to remind me.

[s(k)aturation]

I am already counting my lucky stars you are not in charge of anything Hades, there's really no need to remind me.

 

 

Mass killings are pretty much the formula for retribution, redistribution and above all, equality, yes.

 

It's a bit like Billy Connolly's admittedly much more ingenious solution to world hunger:  "If everyone ate just one person..."

[VERBAL DIARRHEA]

Only ever had family or friends in my old house, not paying rent, more fucking trouble than it's worth.

[Rico1304]

 

Part of Mao Zedong's land reform during the late phase of the Chinese Civil War[1] and the early People's Republic of China[2] was a campaign of mass killings of landlords[3] in order to redistribute land to the peasant class and landless workers.[9] It resulted in millions of deaths. Those killed were targeted on the basis of class rather than ethnicity, so terming the campaign genocide is, sensu stricto, incorrect. The neologism "classicide" is more accurate.[4] Class motivated mass killings continued through the almost 30 years of social and economic transformation in Maoist China resulting in the deaths of 90% to 95% of the what used to be 15 million members of the landlord class in China according to Harry Wu.[4]

Looks like he’s given up on the Buddhism.

[Em City]

Why is that relevant?

 

I work in tax and deal with rental income a good bit, so I could have offered some advice if it was in the Republic.

 

Don't know anything about UK tax, but maybe someone else on here could help.

[Hades]

Funny how the same concern for human life doesn't register when it happens at a significantly more rapid scale under capitalism. 

[Rick Sanchez C-137]

Funny how the same concern for human life doesn't register when it happens at a significantly more rapid scale under capitalism. 

 

Shove your "concern for human life" up your bollocks. It doesn't apply here.

[Paulie Dangerously]

Only ever had family or friends in my old house, not paying rent, more fucking trouble than it's worth.

 

Feel for you mate.  Lad I know has twice rented out a house, one to the son of a friend who trashed it and fucked off abroad and the other to a fella and his family he's known for years.  He gets maybe 1 in 3 rents paid on time. 

[Rick Sanchez C-137]

I work in tax and deal with rental income a good bit, so I could have offered some advice if it was in the Republic.

 

Don't know anything about UK tax, but maybe someone else on here could help.

 

Ah I see, thanks anyway.

[VERBAL DIARRHEA]

Feel for you mate.  Lad I know has twice rented out a house, one to the son of a friend who trashed it and fucked off abroad and the other to a fella and his family he's known for years.  He gets maybe 1 in 3 rents paid on time.

 

What's rent?