If you rent your old house out rather than sell it, you could end up over time with a valuable asset that generates a regular income. This can be in the form of the asset value increasing and the form…
If you rent your old house out rather than sell it, you could end up over time with a valuable asset that generates a regular income. This can be in the form of the asset value increasing and the form of money coming in each month. Learn about the two ways landlords make money through letting out property and use this as a good basis to be able to turn lettings into a form of income.
Renting out your home can be a great way to ride out a real estate slump – if you do it right. This can offer a sustainable and long term income as well as good cash flow. Essentially any income which you receive from renting out your home is considered a UK income, and you will therefore be subject to UK tax on this income. If you’re exploring the idea of renting your home, make sure you do seek the best legal advice you can get hold of so this will not end up being a costly burden to you. Make sure you also have a good plan in place as to how you are able to get in place the right sort of tenant for your property.
Renting out your home can help you manage mortgage arrears or debt. It can also be seen to be a pension-like asset and an asset you can use as a way to free up capital in time to come when you do this in the right manner. Get a good idea as to your rental value for your present house before you take on a mortgage for your new home and how likely it is to get rented out. Again, you need to make sure you are able to do this in a way to which you are able to meet your fixed monthly costs.
If you’re considering renting out a property, think carefully about what insurance you will also need to have to hand and in place. Whether you are renting out your home, or building a portfolio of buy-to-let portfolio, you need to have cover in place for the good of your tenants. Before you put an advertisement in the paper renting out your home, make sure you understand what being a landlord entails. Just make sure you remember this is not as easy as it looks and there are all the legal and financial elements which need to be adhered to and taken on board.