spareroom.co.uk.......

[StarZSoundS]

I have moved in with my Girlfriend.

I recently purchased a house I have no use for...it has three double bedrooms.Because no-one has the capital/deposit to purchase and the buiding soceities are very very nervous there is a big market out there for people in transit.;) ;)

I have let out my three bedrooms for nearly 300 pounds a month each with joint use of the kitchen and bathroom.I have had no trouble filling them using the website above and other methods.

At the moment I have a Rumanian couple and their baby....some one working in a local factory...and a young lady on DLA ocupying the rooms.I have retained my old lounge as my office and occasional stop over so in effect the people there are lodgers.As my Mortgage is a pittance it is proving to be really profitable.

Just a litle heads up for anyone else who may be in a position to benefit.


Might consider this for when I hang up the headphones??:eek: :eek: :eek:

[BeerFunk]

A very good idea, are you a landlord now, or do they act as the landlord?

It's something I might do in a couple of year's time, not really for profit but to move around a bit as the house is binding me to this area.

The thought of having to shell out for massive repair bills and the like is putting me off though, if you're only taking enough rent to cover the mortgage, it doesn't leave a margin to pay for glaziers/plasterers/plumbers etc when things go wrong! And don't forget, people renting from you aren't necessarily going to treat the place as their own :eek:

[StarZSoundS]

The thought of having to shell out for massive repair bills and the like is putting me off though, if you're only taking enough rent to cover the mortgage, it doesn't leave a margin to pay for glaziers/plasterers/plumbers etc when things go wrong! And don't forget, people renting from you aren't necessarily going to treat the place as their own :eek:



I'm lodging there as well so they better behave....


I was worried the same as you but it hasn't been an isssue!!


I have an interest only mortgage at 160 a month....do your own equation...


3 x double rooms at 300 a month....

[Solitaire Events Ltd]

Don't forget that anything over £4250 a year is taxable though.

[Cowlinn]

Don't forget that anything over £4250 a year is taxable though.

I thought it was £7,000?

EDIT: Just read up, Ignore me :o

[StarZSoundS]

Don't forget that anything over £4250 a year is taxable though.



Yep Darren....I have allowed for tax at 20% as that what my Disco rate is.Does that mean my first 4250 is tax-free then...thought I'd get clobbered for that as well?? :beer1: :beer1: :beer1:

[Solitaire Events Ltd]

Yep Darren....I have allowed for tax at 20% as that what my Disco rate is.Does that mean my first 4250 is tax-free then...thought I'd get clobbered for that as well?? :beer1: :beer1: :beer1:

Have a read here. (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804)

[Cowlinn]

Yep Darren....I have allowed for tax at 20% as that what my Disco rate is.Does that mean my first 4250 is tax-free then...thought I'd get clobbered for that as well?? :beer1: :beer1: :beer1:

AFAIK That's correct.

[StarZSoundS]

Have a read here. (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804)



Wow ....spot on...Thanks!!Bonus time!!

[Marc J]

I have moved in with my Girlfriend.

I have retained my old lounge as my office and occasional stop over so in effect the people there are lodgers.


Have a read here. (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804)


You can choose to take advantage of the scheme if you let furnished accommodation in your only or family home to a lodger. Your only or family home is the one where you/your family live for most of the time.

My interpretation of that is that the scheme doesn't apply here.

[wensleydale]

My interpretation of that is that the scheme doesn't apply here.

I agree.

"I have moved in with my girlfriend" gave it away.

Sounds like a buy to let to me.

You also need to check your mortgage covers you for this, and insurance too, plus I also believe that you need certain certificates for things like boilers.

[StarZSoundS]

I agree.

"I have moved in with my girlfriend" gave it away.

Sounds like a buy to let to me.

You also need to check your mortgage covers you for this, and insurance too, plus I also believe that you need certain certificates for things like boilers.


Not a buy-to-let Richard......circumstances have changed.

Don't tell me I need my boiler Pat-Testing please:confused: :confused:

[NKR]

Not a buy-to-let Richard......circumstances have changed.

Don't tell me I need my boiler Pat-Testing please:confused: :confused:

You will need landlord insurance for third parties in the property as they could sue you if they injur themselves.

You will need to have Gas inspection annually and also electrical test cert I think its every three or is five years now. Also you may be required to do a water hygiene test at some point.

I am not fully up on residential but all of the above are necessary for commercial premises on a shared basis and resi is usually much tighter. Annual gas test I know is a must have.

I would also ensure you have a suitable agreement in place as you can get onto a sticky wicket with making people homeless if they stop paying. Partiularly as you are housing children and the disabled.

Its not as easy as it all sounds.

[wensleydale]

Not a buy-to-let Richard......circumstances have changed.

Don't tell me I need my boiler Pat-Testing please:confused: :confused:

Circumstances have changed since 7pm tonight?

No PAT testing on the boiler, but you will need a landlords certificate as far as I recall.

[StarZSoundS]

You will need landlord insurance for third parties in the property as they could sue you if they injur themselves.

You will need to have Gas inspection annually and also electrical test cert I think its every three or is five years now. Also you may be required to do a water hygiene test at some point.

I am not fully up on residential but all of the above are necessary for commercial premises on a shared basis and resi is usually much tighter. Annual gas test I know is a must have.

I would also ensure you have a suitable agreement in place as you can get onto a sticky wicket with making people homeless if they stop paying. Partiularly as you are housing children and the disabled.

Its not as easy as it all sounds.



Neil...at the moment its a bit suck it and see Mate.There was no business plan:eek: :eek: :eek: :eek:

[DJ Jules]

In addition to the above, you also need mains powered, battery backed and linked smoke alarms if you're subletting to multiple tenants (or at least that's my understanding).

If you're taking deposits from them you also need to protect the deposits in one of the schemes like the DPS.

I'm sure there's more as well if you're acting as a landlord...

Julian

[[email protected]]

Some useful information here:-

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1085525210

[Larry B Entertainment]

Neil...at the moment its a bit suck it and see Mate.There was no business plan:eek: :eek: :eek: :eek:

Well I would soon think about one if I was you.

Do your tenants have written agreements ? Did you take a deposit from them ? Are you aware that as a landlord you have a duty to pay their deposits into a Government approved scheme. If you dont, they could sue you for 3x the amount and you cant evict them until its protected.

You defo need Landlords insurance.

If you have multiple tenants on separate agreements and you it isnt your main address of resisdence then the property is classed as a HMO. This brings a whole level of regulations and hassle in itself. A landlord was recently fined £20000 just because he didnt have proper fire doors installed.

[soundtracker]

You also need the permission of your Building Society to let the property, which may lead to a re-negotiation of your interest rate.

[StarZSoundS]

Thanks for your help chaps...I have taken it on board.

DJ's are inherently cautious IMHO...Bit of a wing and a prayer for me so far...will get it sorted tho.

Thanks!!

[soundtracker]

Thanks for your help chaps...I have taken it on board.

DJ's are inherently cautious IMHO...Bit of a wing and a prayer for me so far...will get it sorted tho.

Thanks!!
and in this situation they are right to be so, speaking as an ex-Building Society Manager, I have seen examples of mortgages being foreclosed as clients have blatantly flouted the conditions of their borrowing.:) .

[Charlie Brown]

I would look into all the points raised otherwise it could end up very messy! I've seen a landlord pay a trip to prison.

[Larry B Entertainment]

Bit of a wing and a prayer for me so far...will get it sorted tho.

Thanks!!

Make sure you do :) As soon as you let a tenant through the door and they sign on the dotted line, you need all bases covered. Tenants have more rights really than than landlord does. You need to know the rules and regulations because one slip up can cost you big time.

You should also be aware that even though you have kept an office there, you should be giving the tenants 24 hours notice in writing to even enter the premises. There is normally something in the TA about this and even if it states you can enter when you like, the tenants can override this and are quite within their right not to let you in at all :eek:

[StarZSoundS]

You should also be aware that even though you have kept an office there, you should be giving the tenants 24 hours notice in writing to even enter the premises. There is normally something in the TA about this and even if it states you can enter when you like, the tenants can override this and are quite within their right not to let you in at all :eek:


with the best will in the world....everythings Hunky Dory with my tenants!!:) :) :)

[Solitaire Events Ltd]

As my Mortgage is a pittance it is proving to be really profitable.

Just a litle heads up for anyone else who may be in a position to benefit.




My headsup, would be to do this properly to protect yourself and the other people involved.

There are plenty of issues that have been discussed and need looking into.

For anyone that is thinking about doing this, look into it properly.

[Dynamic Entertainment]

My headsup, would be to do this properly to protect yourself and the other people involved.

There are plenty of issues that have been discussed and need looking into.

For anyone that is thinking about doing this, look into it properly.

I agree completely

A good friend of mine split up with his ex about 2 months ago....she locked herself in the house (his house, not theirs) and claimed squatters rights....it took him 3 weeks to actually get her out...

[NKR]

I agree completely

A good friend of mine split up with his ex about 2 months ago....she locked herself in the house (his house, not theirs) and claimed squatters rights....it took him 3 weeks to actually get her out...

As soon as she leaves secure the property. You aren't telling me she didn't leave the house for 3 weeks. Problem solved. You can't squat on forced entry.

[wensleydale]

There are various things that aren't quite right here- some, like the mortgage you can probably get away with as it is you who will suffer if it backfires.
Other things, like the gas safety certificate are slightly more serious and essentially boils down to breaking the law if you continue to "wing it".

As always, it's your choice, but not the smartest idea to post things like this on a public forum.

[NKR]

There are various things that aren't quite right here- some, like the mortgage you can probably get away with as it is you who will suffer if it backfires.
Other things, like the gas safety certificate are slightly more serious and essentially boils down to breaking the law if you continue to "wing it".

As always, it's your choice, but not the smartest idea to post things like this on a public forum.

Generally a fine and warning if nothing goes wrong - failure of the system and a carbon monoxide poisoning death puts you in manslaughter realms. Its fairly serious business these days.

[Dynamic Entertainment]

As soon as she leaves secure the property. You aren't telling me she didn't leave the house for 3 weeks. Problem solved. You can't squat on forced entry.

She was cleaver...

He's a lorry driver, and she moved her mum in whilst he was away. There was always 1 of them in the house, she had a feeling they were splitting up when he got back, so changed the locks. It wasnt forced entry on her part as she was living there with him.

[Larry B Entertainment]

with the best will in the world....everythings Hunky Dory with my tenants!!:) :) :)

Things can soon change. It only takes one little thing to annoy Tenants and get there back up.

You wouldn't run a disco business by cutting corners and winging it and so on so why run rental properties like it that which can carry much more severe consequences.

If you dont even have Landlords insurance and the place burns down tonight, what will you do ? If a tenant dies in that fire, will you have your backside covered ?

Sounds morbid but these things happen and must be thought about !

[StarZSoundS]

I have been surprised by the camradarie in my home.Its been an empty shell for 7 months and has now sprung to life.

I've been very fortunate....one of my tenants has OCD....LOL