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Hi
after renting advice, I have a house that is fine but 'behind the times' internally (*outside has been kept up, but original everything from 90s inside - kitchen, loos etc etc - it all works fine but is not in the style of today - 'tired' I guess), planning to rent in the not to distant future, hopefully for 8 or so years(possibly longer as I am thinking of using it as 'pension') - as I want to retire early and use house as income (and I'd be looking to be a hands off landlord).
So would it be better to do thus internally:
1 - clean/paint/basic finishing touches only
2 - 1 + new toilets/showers
3 - 2 + kitchen and heating/boiler
- is there any point to double glazing
I've been told that it's better to let furnished as it gives you more rights but I'm *assumming that there are insurances for rubbish tenants etc etc, sadly the general feedback from friends is that the agents don't really seem to earn their keep etc.
I'm also aware that anything done before renting is not tax deductible, however the agent suggested that a company type let is more likely if the house is fully updated and it would get maybe 200 more a month.
Any useful advice appreciated, thanks.
1) Interest portion of mortgage IS tax deductible.
2) tenants don't always care and one of them will eventually trash the place
3) no pets or smokers
4) no matter how nice it is, if it's in a poor area you won't get as much for it
5) smoke detectors are mandatory, as are handrails on stairs. Gas safety certificates also mandatory and renewable every year, one for each appliance.
6) if kitchen is dated, just replace the doors - cheaper than replacing the whole kitchen
I'd do the work to bring it up to standard. If you're renting for 8 years it's gonna look really dated after that period. I keep my rental house above average for condition and below average for rent (I don't use an agent so can afford to do so) so I can try to get the pick of the tenants - who will make the experience a doodle or a nightmare in the long run.
Expenditure on repairs are tax deductible for income tax, expenditure on improvements (kitchens etc) are tax deductible for CGT, iirc.
It depends on where you are and the condition the propert is in really,
For us it made sense to do the central heating prior to renting and a re-decorate including kitchen (cupbord doors and handles etc). We will do the bathroom as time goes on and are about to replace the cooker and oven in the next month or so now we have tennants.
Most people look for modern GCH, double glazing and then how the place looks. If you get a modern boiler now with a 5 year garentee it should be one less thing to worry about during the renting of the property.
For a complany let the may also expect the elecgtric to be upto curent standards, be aware of this before going ahead with everything else and then being shot down at the last hurdle.
"I've been told that it's better to let furnished as it gives you more rights"
It goes without saying you'll get more money if the property furnished but it doesn't give you more rights! If someone moves in with no possessions and you want them out, it can end up being more complicated.
My dad owns a lot of property and says he will never keep any of them furnished again. It's something extra for you to sort out too, especially if you've got new tenants moving in every 6-12 months and they haven't looked after stuff.
Bring it up to scratch. My fiancé rents out her apartment and was fed up with the Walls being scuffed after every tenant, it was suggested adding to the contract a clause any scuffed/marked Walls will be charged at £100.00 each to repaint. The last two check outs have been fine.
My advice is:
Rent through an agency as they are more likely to get the contracts 100% correct. Take out non-payment / eviction insurance (about £200 / annum). Make sure you put deposit in deposit guarantee scheme and expect to loose it if your tenant does a runner / trashes the place (as without their consent you can't get it out, unless you go to court to get a court order, which costs more than the deposit).
NB You have no idea how hard it is to evict a tenant if they stop paying rent. We found out recently to the tune of £6k in lost rent / solicitor / barrister / court fees and we still can't get the deposit back without going back to court for a third time!
I live next door to the house I rent out, it has its benefits.
Agencies are also worth it, and I would set up a rapour with a local gas fitter / plumber as this helps tremendously. Especially when the gas supply failed in January at -5 😯 . It was fixed within the hour.
Also get a good accountant, for a £100 a year it'll keep the tax man off your back.
If it is sound but dated, just reduce the rent a bit to reflect it's condition, and upgrade it when it finally breaks.
Don't forget the detailed and signed inventory. Without one you have zero ability to retain any of the delapidations deposit.
As a tenant, i would suggest the following.
I don't really care what the decor is like as long as everything works. I want to be able to personalise the place, i.e. hang some pictures. I want a shower, somewhere for a fridge, washing machine, etc.
It is nice not to have misted windows, or drafty doors.
Having things fixed when they go wrong is nice.
And i would rather not deal with an agency because i know they are out to screw me.