Being a landlord (UK)

I have become a land baron, milking my cash cow for all its worth.

Are any other ILX0rs in this position? Me & my partner bought a flat about 4 years ago and due to moving abroad decided to let it out at the end of last year. The estate agents were pretty good, did a detailed inventory and have found us some great tenants. However they're currently "managing" the property which costs us 10% of the rent every month.

They've become almost completely useless - continue to get our names wrong on every document, and haven't told us about some of the problems the building's had due to the weather (we have been emailing the tenants, as they can write coherently and actually keep us up to date with this stuff). We know a great builder who is willing to go round and check up on any problems so all is ok so far.

We're wondering whether to keep paying 10% to the agents as we could use the money ourselves (and are coming to the end of the initial contract with the estate agents). Obviously we'd need to sort out some kind of similar contract, make sure the deposit's in one of those 3rd party accounts, etc.

My main worry is sorting out what happens if they want to move out - inventories, meter readings and so on - but I'm guessing you can use these companies without going thru an agent.

So: share your landbaron experiences/any advice on going it alone?

Honestly I am hesitant. We thght about it for a while. But hearing my father in law talk about it: NO.

I rent to others, but I live in the same house. If I were abroad and subletting, and I had your problems, I would hire a different management company. Ten percent isn't much if the legalese is being dealt with competently, sounds like they aren't doing that.

I'd definitely keep in contact with the builder and the tenants, those are the most important parts. Overall sounds like a good rental scene.

You shd try screwing yr tenants for every penny you can legally get.

I flew over and took the bathroom door off its hinges. I'm learning.

Tbh I think all the local letting companies are as bad as each other. It's the fact it's pretty easy street so far that's making us think again about having one at all... eh... seems like it'd jinx it to fire them...

I have been renting out my London flat without an agency for 18 months. I subscribe to a company that provides a contract, inventory system, legal advice, a helpful website and credit checks for £70 per year. All has gone well so far. The tenant I had has just moved out so at the moment I'm trying to find another. In my experience professional agents are fine when the payments are high but as their income drops their level of service disappears rapidly.

If I were abroad and subletting, and I had your problems, I would hire a different management company

I'd go with this tbh, but that's based on being able to find a decent one locally, as you say.

Does the rent get paid to the management company directly as is? Because if you change that to a direct payment to yourselves while you're living abroad there may be tax implications.

Yeah, I'm unsure of the tax implications but it would ideally go into a UK account which is used to pay the mortgage ie we'd never touch the money here. (You can, I think, in the UK deduct mortgage payments and the cost of the extensive renovations we had done, so wouldn't really be any income to speak of but would prefer not to have the hassle).

As I have just discovered, here in the US everyone needs to do a tax return regardless of whether they also Pay As You Earn so I guess would get covered in that, if necessary. Can't wait.

mmmm, what was the name of the company? Sounds ideal!

Our agents actually sent us a letter addressed "Mr _Firstname_" at _Name of Company which employs MANY people_ as we gave them my husband's work address to contact us on. That's right, they didn't even think to put his surname on it. The surname they consistently get wrong anyway.

You should not declare any UK income in the US, you are under no obligation to unless you bring it into the country and you will only pay tax twice on it.

you should declare it on a UK self assessment form, although you are unlikely to pay any tax on it as costs such as mortgage interest are deductible from it and you have to be in profit above about £4500 (check the exact number) before you are liable for tax.

Re5idential Landl0rds A55ociation is the name of the company.

You shd try screwing yr tenants for every penny you can legally get.

GYAAAAAAAAAA-

Was gonna post the DKs

You can deduct mortgage interest only from UK taxable rental income (not capital payments).

But if you are not making other UK income other than profits from investments such as a flat rental then you are unlikely to run over the allowances of two individuals if the property is held jointly.

Yes, that's true

Ta guys. I was wondering where I would need to "declare" the rental income (as you mention, unlikely it would exceed the £4500 threshold). Glad I don't need to have it complicating my US tax return.