Landlord advice please

[dannyjpuk]

Hi all i was hoping some of you can give me some advice i have recently bought my 1st home i have fitted new carpets ect all rooms painted ect (nice and new) i have been thinking of renting it out.... i have a close friend who has jumped at the chance of letting it off me i have done the sums and i would be covering the mortgage and just slightly be in profit...

but this is where it gets complicated and i need help what regulations do i have to do

what we have agreed too is to do it all in private IE i move out he pays me XXX a week i pay that off my mortgage we both pay the councul tax (my mam and dad are going into shelterd accomadation) so i cant say im living with them so for the council tax side i will be paying towards it just so im registerd somewhere if you get me lol (so its more like one of them house shares) and i will more than likely move into my static caravan for a year

Also what he pays me rent do i need to pay tax ect

thanks all

[Craig1985]

I think if you make a profit you do????? But if you make a loss then you don't???? ;0)

[m8internet]

Have you bought the house outright or is it on mortgage?
If it is on mortgage, does your provider allow buy to let?

The person letting the property should be responsible for Council Tax, contents insurance, and utility bills (no share)
The owner should provide buildings insurance and offer the tenant discounted contents insurance

Finally don't forget the tax man and dependent on circumstances Customs & Excise for National Insurance (if run as a business)

[RhayaderSax]

You have to pay tax on all your profit.
Your expenses (that are tax deductible) can include

• insurance
• travelling in connection with the property at 40p/mile (eg: inspections, maintenance)
• repairs (but not improvements)
• mortgage interest (but not the mortgage payment itself)
• phone calls in connection with the property

If the house is fully furnished you can either:

• claim 10% of the rent as tax deductible for "wear & tear"

or

• claim the cost of replacing furnishings as they break/wear out

but you can't do both.

You can also claim a percentage of your council tax & utility bills if you manage renting the property from home but never say you use an entire room solely for business purposes - this can land you liable for business rates.

If there's any chance of you still living there & sharing the house you may want to consider the Rent a Room Scheme.