I am considering buying a house to rent out. Does anyone do this already, if so do you get many problems from tenants and when you signed contracts did you find getting everything ready ok or not.
Also do you have to declare the extra income to the tax man.
2007-02-18 04:04:36 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
You MUST declare the tax (Sorry!)
As for problems with tenants it will all depend on who you plan to have. Many think they will go for the proffesionals who will pay more but this usually brings on more problems.
They are usually only after somewhere for 6 months so rarely look after the place well and can afford to lose that small deposit rather than do the £100s of damage repairs.
If you want an easy life go for families as they tend to be long term and as it is the home that the kids will be brought up in they will normally look after the property well.
Check out the clothes and vehicle when they view as this will give you an idea on how they look after things.
Also don't assume that benefits are bad news. It is a reliable income and is less of a risk than a job. They come and go wheras a benefit is normally for life. With the exception of a few benefits which just indicate the person is a lazy bum!
Don't be greedy with rent too. People are more likely to stay if the rent is reasonable but if too high will be eager to move on.
Get work done when it is needed, and don't cut corners. Lives could be at risk and could result in some serious action taken against you.
These days it's the best business to be in with so many people unable to buy hom,es and having to rent instead but it also means that the competition is hotting up.
Get some good advice snd though you can buy tenant/landlord packs most places now (even Tesco) it would be worth going through things will a solicitor.
Also decide if you want to go through an agent or not. This has some benefits and also some bad points so weigh up what is best for you.
2007-02-18 05:16:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I even have heard some a great way fetched solutions, yet to declare simply by fact a landlord needs money fee he's hiding from the tax guy is ridiculous. at times, I even have demanded money simply by fact a tenants examine has bounced in the previous and that i now no longer have confidence him. and that i've got had undesirable money orders additionally. If he needs money, then he doesnt have confidence you for some reason. He has that staggering. you have a staggering to a receipt for that money. in case you dont do it his way, then he will bypass to court docket. Then it is going to likely be located on your credit rfile for as much as ten yrs (depending on state). stop stalling, supply the guy his money, get your receipt, and be achieved with it. no longer all landlords are crooks and have valid motives for no longer accepting tests, money orders or maybe cashiers tests.
2016-10-02 08:26:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You clearly have no idea what you are intending to do, so be sure to get yourself a good lawyer - you're going to need one pretty soon.
The whole point of buying "income property" is to use the tax deductions that come with it. If you don't declare the income, you don't get to claim the tax benefits.
Not to mention, failing to declare income is illegal where it is taxed.
2007-02-18 04:11:09 · answer #3 · answered by thylawyer 7 · 1⤊ 0⤋
go to the library and check out books on being a landlord.
2007-02-18 04:16:39 · answer #4 · answered by wendy_da_goodlil_witch 7 · 0⤊ 1⤋