Comments on: Becoming Mr. Rigsby

Question: Becoming Mr. Rigsby

electriccynic — Mon, 11 Jun 2007 06:03:49 -0800

I'm in the fortunate/unfortunate positon of having to rent out my one-bed flat in Shepherds Bush, London. So I've got a few questions to ask:

1. I'm looking at charging £200/£210 pw for it. Is that a reasonable charge or can I ask for more these days? (Pics at http://w12.applegrass.com)

2. What's the best way of letting people know about it? How did you find where you're living now?

3. There's some kind of new-fangled tenancy deposit scheme to protect tenants against evil landlords such as myself. Have you had any experience with it yet? Is it obligatory?

4. How do I declare the income from said flat to the taxman? I've never had to file taxes before - and I'm loathe to do it mainly because it means I'm renting out the flat at a loss, albeit at a smaller loss than if I were to leave it lying empty.

By: Phanx

Phanx — Mon, 11 Jun 2007 06:45:50 -0800

Here's some basic information about the tax aspect.

By: jontyjago

jontyjago — Mon, 11 Jun 2007 06:54:42 -0800

I'm no taxman, but as a landlord myself, my understanding is that the income you need to declare is based on the rent minus the interest, not on the capital repayment. So if the interest only on your mortgage (regardless of the type of mortgage) is say £400 and you're getting £800 a month rent then your income is £400. So in the in eyes of the taxman you might not actually be making a loss.

I would bite the bullet and call the tax office and ask them what to do, would be a hell of a lot easier. Tax returns seem daunting but are not actually that difficult if you do a little research beforehand. And you can do them online which makes things a bit easier.

As for question 2 you might want to consider using an agency to rent it out for you. This obviously costs money (I'm paying 14% of the rent) but if you're not near the flat then it might be worth considering. Also they deal with all the advertising / showing new tenants around etc. Whilst I wouldn't say overall they are worth the money they are at least a first port of call for problems and do find the plumber / electrician (and get quotes) etc if needed.

By: chrismear

chrismear — Mon, 11 Jun 2007 07:07:20 -0800

If you want to go it alone, Gumtree is a popular listings site for London rentals.

Judging by the Shepherd's Bush 1-bedroom flat prices on there at the moment, I'd say your £210 pw is about right. You might be able to push it up another ten or twenty quid, but I don't think you'll get more than that.

By: handee

handee — Mon, 11 Jun 2007 07:08:33 -0800

moveflat.com is another popular flat rental site in London for advertising it.

By: patricio

patricio — Mon, 11 Jun 2007 07:19:02 -0800

As far as offering it, try Gumtree or ask your friends to post it their work bulletin boards. I know a fair number of people who in the past have let/rented flats through the accomodation board at RollOnFriday (a lawyers' site). The listings there might give you an idea about pricing.

By: jadepearl

jadepearl — Mon, 11 Jun 2007 09:50:16 -0800

I would suggest posting at Sabbatical Homes which is dirt cheap to post and you will get a higher quality clientele i.e., no undergrads, who are on the lookout for various lengths of tenancy. I have used the site both ways as a renter and a landlord.

Because they, the potential renters, are faculty you can check on their backgrounds easily. The only tricky part is that because they are from overseas their banking in the UK would be more difficult, that is the catch-22 of needing a whole lot more proof to open an account so you will need to figure out reliable ways to deal with payments with their banks and in what currency.

Email me for specifics.

By: louigi

louigi — Mon, 11 Jun 2007 11:15:06 -0800

For what it's worth, I am currently renting quite a nice one bedroom in Shepherd's Bush for 1000/month (so, 233/week assuming a 30-day month), everything included (electricity, gas, phone, internet, council tax). Also, to back up jadepearl: I found it on SabbaticalHomes, which is good for all the reasons she (I assume that's as good a term as any for your described gender, jadepearl) says.

By: featherboa

featherboa — Mon, 11 Jun 2007 11:40:02 -0800

It might also be worth putting an ad in Ariel, the Beeb's in-house magazine.

By: yellowcandy

yellowcandy — Mon, 11 Jun 2007 12:18:21 -0800

Yes, take note of what louigi mentions in passing: council tax makes a big difference. If you're including it, you can charge more, but if not, you'll need to adjust your rent accordingly. Unless of course you rent to full-time students--they are exempt from council tax.