Does anyone know about renting a house out?

Question

Do you have to declare it to the tax man and is it easy to find tenants?

Is it easier said than done?

Answer 1

You can use an estate Agent to find tenanats and even manage the property for you.

The income side is taxable.

Be prepared though as depending on the type of tennants you want the property may be empty for lengths of time.

Answer 2

renting a house is easy, but there are some tenant laws you should be aware of, read up on your state's laws concerning tenants. You'll get a lot of responses, just make sure you find the right people to move in. Someone you can trust to pay you on time and not damage the house. Unless you have a lot of time and patience dealing with people, I'd suggest going through an agent and let them do all the work of managing the property. They'll take a cut of the rent, but it may be worth it since they will deal with the tenants.

As for the tax man, you're supposed to declare the rent as income. However, any repairs or upkeep costs associated with the house can also be deducted, so that helps a little.

Answer 3

Yes, tell the tax man, you'll sleep easier at night and he'll find out anyway. I have always used a Letting Agent: they know the local market, how much rent to charge, whether to let furnished or unfurnished. For example, in London furnished is more popular, but in Devon everyone wants unfurnished.

Make sure the house is clean and re-decorated to a good standard. Don't expect people to move into a smelly old place and behave like Princes, they will behave like smelly old people. Don't try to let a place you would not live in yourself. Keep it plain and simple - cream or white walls, plain carpet, white bathroom fittings, as few patterns as possible.

A Letting Agent will advertise the property, show tenants round, take up references, hold the deposit if you wish (new law- landlord can no longer hold the deposit, but you can use another firm if you wish) The Agent will also draw up the Tenacy Agreement, make any alterations you wish (one of mine says the tenants cannot go out on the flat roof outside their window cos its dangerous)

Do a CORGI (gas) every year a NICCE every 5 yrs or when tenancy changes, treat your tenants in a friendly and business like way, insist on Direct Debit, be professional.

There is work and care involved, and while it's not difficult, it's not money for old rope either.

Answer 4

I am a letting agent - yes the profit you receive on any rent is taxable so you need to declare it - most agents can do the tax returns for you - some mortgage companies also state thet they need to know that you are renting your property out as that may increase the mortgage rate( only if you have a mortgage on the property that is!!!)

And no tenants are not always easy to find - especially good ones so be careful chosing your tenants and be very careful when choosing your agents!!

Many agents doent have great reputaions within the industry as they have the mentality that it is best to get someone in there to get their money rather than trying to find the right person for you which is far more improtant in the long run i think!! Id rather tell my landlords that i am still looking for someone for them and they lose a bit of rent than put any old tom dick or harry in there who runs up bills and dosent pay the rent. Ask the agent (if you use one) to tell you about their referencing process and take out a rant warranty insurance through letsure or paragon etc.

Good luck !!

Answer 5

It has to be declared to the Tax man because it is considered to be earned income. You can ask an estate agent to rent it out for you but they do chatge fees for this or you can advertise it yourself. If the accomadation is furnished, then you have to make an inventory of everything in the house and when you get a tenant, you must go through the inventory with them and ask them to sign to say that anything that is damaged must either be replaced or paid for. A word of warning, don't accept anyone on DHSS because it is a long process getting the rent payments started and they can set up a direct Debit for the rent, but they can also cancel it a week later and have the rent money paid directly to them , then they stop paying rent to you and you have to go through the courts to get them out..You will be responsible for any repairs and maintenance and you will want references from anyone renting, and make sure that you check these out before renting.

Answer 6

You have to claim the rental amount as income. On your taxes you can also deduct receipts for any repairs etc. To find tenants put an add in your local paper. make sure you get a rental contract and deposits.

Answer 7

Yes it is pretty easy.
there are pitfalls that you have to overcome.
The income is taxable but only the profit. ie the mortgage interest and expenses come off the rent and the difference is profit.
You will need to find out how to remove none payers of rent.
You need certificates for you electrics and gas.
there are a lot of websites out there
use an agent for a while untill you learn the ropes

Answer 8

Some estate agents (like Guardian Lettings) offer a management service for rentals. And, yes the income is taxable.

Answer 9

It's very easy to do. i had to declare it to the building society where I had my mortgage but no one else. You can rent independently or through an agent. I did it both ways and would advise going through an agent as they do all the groundwork for you as well as collect the rent etc...

One word of advice, i wouldn't rent out a furnished place, rent it totally empty, I had nothing but trouble, lots of damage to furniture....