Renting my house out – what boxes do I need to tick?

I’m looking to rent out my, currently empty, house out. Hopefully to a friend of a friend.

It’s my house, on a mortgage and it’s only going spare due to moving in with my girlfriend. As I say, I’m hoping to let it to someone I know and I want to do with with the minimum of form filling and legal nonsense – not because I’m trying to get out of any obligations or safety or whatever, but I just don’t like/have time for tons of forms.

So… it’s got a new boiler and was rewired about ten years ago, it’s just been plumbed to mains water rather than spring and it’s from 1880 or so. I’m still paying the mortgage and bills etc and would obviously like to transfer bills etc over. I’m only looking to cover the cost of the mortgage and a bit for repairs and things (my new £2K boiler will take a while to pay off at this rate).

Do I need to tell my mortgage company? And what do I need to tell them? It’s not intended to be a buy to let, and I assume that there are lots of houses that get rented out due people moving in together.

Do I need to get landlords’ electric and gas certs? I’m assuming so.
How about the energy efficiency rating thing?
Do I need to put a deposit into escrow and all that formal stuff?
How about the furnishings? There are a couple of beds and cupboards and some old school paisley sofas and a dining table. Am I meant to scrap it all and buy flameproof IKEA rubbish?

What else? All advice welcome.

You need to grow your fingernails and get a stovepipe hat

All of it! Good luck. we’ve just sold our old flat – hated every minute of being a landlord.

You must have a Gas Safety check done every year.
You must have working and in date smoke alarms & CO alarms (CO alarms only last 5-6 years).

You ought to tell your mortgage company, but they made decide you’re letting and change you to a BTL mortgage which could cost a bit more.

I’d advise you to get Landlord’s insurance with eviction cover (as if someone stops paying rent and starts squatting it can be very expensive to get them out).

You also must expect to be labelled a capitalist scum bag, stealing property from the young, on STW.

a quick google throws this[/url] up, seems as good a place to start as any.

I’d say, even if it were friends, get it done properly (i.e. legally) for both parties protection.

I rent my property, but using an estate agent as it is easier for me.

You also need to tell your mortgage provider and change your insurance.
Ours is mortgaged through HSBC and they let us inform them of our rental each year and then give us a 12 month permission to rent on our current mortgage terms. But you need to check that this is allowed through your provider.

I am pretty sure that you have to use one of the approved accounts for deposit.

We have to have a gas inspection each year, but I don’t know if this is just the estate agents rules or written in law?

one thing that our estate agent told us about a month or so ago was the changes to the regulations regarding the smoke and gas detectors which I assume you will also have to provide:

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Privately Rented Properties

As you may be aware the legislation regarding rental properties is changing from the 1st October 2015. From this date it will be law for the landlord to ensure that each of their properties has a working smoke alarm on each floor. If there is a boiler (oil or gas), a gas fire or a gas cooker within the property. A carbon monoxide detector must now be fitted.

While we appreciate that your property may already have these items fitted. The law now requires a smoke alarm on each floor and a carbon monoxide detector in each room that has an appliance. While we realise the law is initially for new tenancies we feel it is diligent for all our managed properties to comply with this new legislation. A copy of “A Landlords Guide to: The smoke and carbon monoxide alarm (England) Regulation 2015” is attached.
————————————————————–

Yes to all that. If you take a deposit, it needs to be in one of the protection schemes. Either do a full proper inventory yourself or pay someone else to.

Anything upholstered needs to have the flameproof labels. There’s an exception if it’s pre-1950.

Mortgage companies will usually give you a permission to let (for a little while at least) without making you change mortgage. They may charge a fee for doing it though.

You will probably need to change your home insurance too as you won’t be living there.

You also must expect to be labelled a capitalist scum bag, stealing property from the young, on STW.

This 😆

Do I need to tell my mortgage company? And what do I need to tell them? It’s not intended to be a buy to let, and I assume that there are lots of houses that get rented out due people moving in together.

If you’re renting to friends or family then no, don’t tell them. Even if it’s not friends or family it’s your call, they might be fine or they might switch you to a buy to let mortgage.

Do I need to get landlords’ electric and gas certs? I’m assuming so.

You need a gas cert but wiring and portable appliance test certs are optional. Having done a lot of reading on the subject I opted out. If you have a maintenance contract on your central heating and switch to landlord cover you get a free gas cert with some suppliers.

How about the energy efficiency rating thing?

If you’re going with an agent you need an EPC (energy performance cert), but if it’s friends or family then you don’t. If you do get this shop around for the best price, I paid £40 for the last one, but had quotes nearer £100.

Do I need to put a deposit into escrow and all that formal stuff?

In theory yes, friends/family then no.

How about the furnishings? There are a couple of beds and cupboards and some old school paisley sofas and a dining table. Am I meant to scrap it all and buy flameproof IKEA rubbish?

Not sure on the fireproof regs. I’ve never been asked to certify furniture is fire retardant.

So I guess it all depends on how formal the arrangement is with the people living there. If it’s people you trust just get them to bung you x amount every month in cash. Job done.

I’m looking to rent out my, currently empty, house out. Hopefully to a friend of a friend.

Sounds like a good way of loosing a friend

Sorry, missed the actual question

‘Do I need to tell my mortgage company? And what do I need to tell them? It’s not intended to be a buy to let, and I assume that there are lots of houses that get rented out due people moving in together.’

HSBC refer to is as a ‘consent to let’ and issue it as a 12 month permission.

We keep extending ours as we state that we will be moving back to the UK at some point and don’t intend to keep it as a rental.

Never rent to anyone you aren’t prepared to evict.

Never rent to anyone you aren’t prepared to evict bury under a patio

Much cheaper.

mortgage company and you also need to tell your insurance company. Also inform them if anyone has a criminal record.

And have a contract and deposit. Friends and money don’t mix

You’ll need to register for a tax return as well, unless you’re into tax evasion

mortgage company and you also need to tell your insurance company. Also inform them if anyone has a criminal record.

You don’t need to tell your insurance company, just cancel the current policy and then get landlord cover. You don’t need to inform the insurer that a tenant has a criminal record.

You also must expect to be labelled a capitalist scum bag, stealing property from the young, on STW.

This

I think there is an exclusion clause for being Chipps. It’s in the forum rules somewhere.

You’ll need to register for a tax return as well

Only if you gross more than £4,250 from renting the room…

Only if you gross more than £4,250 from renting the room…

He’s not renting a room out he’s leasing his house. ‘Renting a room’ isn’t the same.

You also must expect to be labelled a capitalist scum bag, stealing property from the young, on STW.

I’ll bite – as there does seem to be a massive failure of understanding that when there’s a massive shortage of housing, owning more than you need is hoarding, reduces supply available for sale and simply pushes up prices to unaffordable levels/swallows so much of people’s stagnant incomes that the economy is going nowhere and is actually a bad thing for the whole of society as a result – zero growth = lower tax take = fewer services provided by the state = stagnant pay = fewer jobs etc etc

It’s my house, on a mortgage and it’s only going spare due to moving in with my girlfriend.

The key question is why not just sell it now that you no longer need it – which is what we used to do before BTL/being a landlord became so fashionable It has the added benefit of leaving you debt-free which has got to be a major win?

No-one keeps their old car when they don’t want it anymore do they?

He’s not renting a room out he’s leasing his house. ‘Renting a room’ isn’t the same.

Technically yes, but all depends on how much he moves out and how long – if he’s still getting mail / registered to vote etc, I’d just declare in under rent a room as it would look like he still lived there.

Even with BTL you only get taxed on net profit (at the moment).

I’ll bite

My post was just bait for you, what took you so long?

The key question is why not just sell it now that you no longer need it

Moving in with GF and being ready to sell old house (and fully commit) do not normally occur at the same time in a relationship…

As a non house owner you have no idea just how expensive buying / selling a house is – there is a huge financial incentive not to sell.

I’d just declare in under rent a room as it would look like he still lived there.

Are you suggesting chipps becomes a tax dodger avoider? 🙂

I do a tax return anyway, so I’m OK with declaring it… 🙂

The key question is why not just sell it now that you no longer need it – which is what we used to do before BTL/being a landlord became so fashionable It has the added benefit of leaving you debt-free which has got to be a major win?

Because I’d have to do it up more than it currently is, I’d have to move all of my stuff out (including beds, furniture that I can currently leave there) and I’m not sure it’s worth any/much more than I paid for it. And I’ve just bought a £2K boiler for it.
And, as someone pointed out, what if I don’t like the girl I’ve moved in with? 🙂

Because I’d have to do it up more than it currently is, I’d have to move all of my stuff out (including beds, furniture that I can currently leave there) and I’m not sure it’s worth any/much more than I paid for it. And I’ve just bought a £2K boiler for it.
And, as someone pointed out, what if I don’t like the girl I’ve moved in with?

You’ll be first against the wall when brooess’ revolution starts!

Are you suggesting chipps becomes a tax dodger avoider?

I believe it’s called tax optimisation 😉

Alternatively he could just set himself up as a Hedge fund registered in Sark, and apply for a regional development grant to do up the house up and the just pocket the cash and live tax free….

“The key question is why not just sell it now that you no longer need it – which is what we used to do before BTL/being a landlord became so fashionable It has the added benefit of leaving you debt-free which has got to be a major win? “

Not all debt is bad – it depends how leveraged you are to have that debt.

and as the old saying goes – buy land – they dont make it anymore.

If chipps jumps off now and sells up – pays his mortgage off, then splits up with his girlfriend – where does he go ?

where does he find the extra given that housing price increase is currently outstripping non risk based investment – he sells his house for 150k – and he wants to buy it back in a year – it could easily be 170k , his 150k a savings account at 2% will be 153000…..

of course it could be down at 130k and he would be quids in how ever past data is the best data we have to predict the future – even if it bares no realistic similarity to what may happen – but that would be the polar opposite of what the previous data says.

is it 4 or 5 years you have been waiting on the flipped upside down pricing D day now ?

The key question is why not just sell it now that you no longer need it

Also, it’s in Todmorden. There’s not a hugely vibrant housing market. 🙂
However, if you would like to buy it, brooess, then I will happily sell it to you for the market price.

However, if you would like to buy it, brooess, then I will happily sell it to you for the market price.

But then he will become the thing he despises most.

Oh the ironing…..

Oh and…

he sells his house for 150k – and he wants to buy it back in a year – it could easily be 170k

As I said, this is Todmorden. Think more like half that 🙂

New landlord? Be prepared to get done over….
Up here in Scotland the laws and the expectations on landlords march endlessly on – or maybe it is just Perth and Kinross councils interpretation of the ‘rules’ (which are not ‘rules’, they are guidelines of best practice, and despite some saying ‘must’, you do not have to, and some say ‘should’ and you must…).

We have a place that was rewired, re-plumbed, new bathroom, kitchen, fire doors and closers etc all in 2008. I am now being asked to replace the communal doors in the block with fire doors (so all the neighbours front doors) and the main building front door to open out, not in, despite it being a 100 year old door on a conservation building. I am being asked to re-wire my already hard-wired smoke alarms to include a heat sensor in bathroom, and sensors in the two storage cupboards that are built in.

The next thing on the hit list is the fact that my kitchen has 10cm too little worktop (there is more worktop than our 4-bed family house…), one bedroom is 3cm too narrow to class as a bedroom (despite fitting a double bed in, with room to walk each side, and I only have single in there) and the fact that I have provided drying rack, which should actually be vented drier..

I would also say that current government and Labour seem intent on doing over small landlords, and I expect all the tax to continually move on, as planned already, and then some more.

I hate it, and want out.

Ensure you contact the local council about council tax, electricity, gas ands water companies to tell them youre the owner but not occupier so they can send out new bills also read and photograph all meters with the local paper as a date line underneath.

in the first year expect the heating to go wrong, usually after the rent hasnt been paid and youve sent them a warning letter advising they owe you some money, expect to loose them as freinds and your freinds as freinds.

The heating had better not go wrong, I’ve just bought a brand new boiler! 🙂

Thanks for all the help everyone. If no one’s interested in renting it, then I guess I can sell it, but I’ll still have to fix all the bits (leaky gutters etc) before I do anyway and no one wants to buy a house in the middle of the winter anyway…

not true!

Rightmove has some of their busiest days over Christmas.
http://www.rightmove.co.uk/news/articles/property-news/%E2%80%98twas-the-night-before-christmas-and-we-looked-for-a-house%E2%80%A6