What You Need to Know When Letting a Property
Letting a property can be a big money earner for some, whether that’s buy-to-let or letting a property you already own. The website https://mycasesource.com/ gives you information that can help you Let a property
But you must know some basics to avoid trouble not only with tenants but with letting agents too! We’ve compiled 6 things you need to know:
- Income tax. Money that you earn from rent is subject to income tax like any other income. You will need to declare your earning on the self-assessment tax return yearly and HM Revenue and Customs will decide how much you owe. However, should your property be managed by a letting agent, some of this may be handled for you, so you need to know what’s already being taken care of.
- Deposits. The Tenancy Deposit Scheme was set up by the government to avoid disputes and deposits. This government authorised scheme will be able to offer a (free) resolution service should any issues arise surrounding the deposits at the end of the tenancy.
- Manage your income. When letting your property, be aware of whether you’re able to cover your own expenses (mortgages, bills, etc). You’ll need to estimate your yearly earnings from your property (rent estimates provided by an estate agent or by similar properties in the same area) and deduct the estimated costs (like mortgage payments, bills, insurance, for example). Keep in mind there will be unexpected costs from repairs and maintenance – and if you’re using an agent, then there will be extra costs associated with the management.
- Will it even be profitable? If you are buying to let, you need to know whether the venture will be profitable for you. If you’re buying using a mortgage, the earnings will likely come from selling the property in the future at a higher price than what you bought it for – letting a property is a long-term investment.
- Eviction. Hopefully not a situation you will find yourself in, but you can apply for eviction (under section 8 of the Housing Act 1988) should your tenants be at fault in any way, e.g. not paying rent, or by causing damage to the property. If doing this, you must do so by a set procedure or you could find yourself in legal trouble later on.
- ‘Quiet enjoyment’. Your tenants do not have to let you into your home unless you have given them at least 24 hours notice in advance (excluding emergencies). If you try and enter the property without prior permission, this can be put down as harassment.
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