Updating post from Reddit.
Young accidental-landlord wanting to know if Safe Contractor Approved is legally mandatory? Saw it in my estate agent’s guide. I will be Let Only. Also if there’s any other important wisdom I should know regarding being a landlord etc, please do let me know, I’m quite overwhelmed lol. Thank you kindly
Never heard of a landlord having to be safe contractor approved. I’m a contractor and I’m not even safe contractor approved, it’s another money spinning exercise from what I can see and I work for a few very large main contractors who are SC.
Just make sure you have an EICR and Gas safe certs in place. Do an inventory and 3 monthly inspections and keep on top of maintenance.
I would strongly suggest using a letting agent but get a reputable good one who knows the area, don’t just go with the cheapest, but actually check reviews online, local forums etc from both Landlords and tenants - be mindful you’ll always get the odd hate message but if the general consensus is that they’re good then they’re generally going to be ok.
Make sure the deposit is protected to avoid any comebacks and if they ask to decorate just tell them no or you’ll get a painter in (This one’s a sore point of mine personally).
Hi, beautiful, thank you for the reply. EIRC and certificates are all in check, no gas at the property. It’s a studio flat so it’s pretty straightforward. I’ve found a good estate agent which have offered Let Only with only one set-up fee. Went through another agency before and it was not good (I’m in Cardiff fyi). I was going to go with DPS I think for the deposit but I read it’s quite partial to tenants rather than landlords so I’ll keep researching
But I agree, find a good tenant through an agency is the main thing really. They seem to be pushing for a zero deposit scheme but I don’t trust that, they must benefit from it
Oh ok. I’m not sure of any local rules/regs to Wales specifically so it may be worth researching that - I believe some things could be different. I may be wrong though.
Yeah I had my agent try to encourage that a while back, I think it’s some sort of insurance scheme instead of a deposit which I imagine they take a % of - much like how a mortgage advisor will receive a fee. I think it would be good to assist a tenant who doesn’t have a deposit (if that’s how it works) but to be honest anything like this I have scepticism for because it will usually end up costing both the tenant and landlord a fee which ultimately increases prices for both parties with no or little liability to the agent who is benefitting. However I don’t know how they work exactly I can only imagine.
Deposit guarantee schemes you are right seem to favour the tenant but it is a protection effectively for both parties. This is where a good inventory shows its worth but just be mindful that any damage repair does seem to have a bit of price reduction next to it depending on timeframe since renovations etc.
Make sure you’re aware of the tax implications too.
Hard to find info for the SCA but I’ll keep looking. I’m withholding asking the agent but maybe I’ll have to lol. With regards to tax and vat, I’m really clueless. I plan on putting the rental income into a separate account, will keep note of outgoings for repair etc and I should just fill out a self-assessment form at the end of the financial year…? Every year? Really no idea on that lol
Yeah that’s basically it with the self assessment. Just be mindful that depending on your income tax rate you pay tax on rental as though it is your pay rate, so if you’re a higher rate tax payer you pay 40% lower rate 20%. That is of the entire rental income minus agent fees and repairs costs - not mortgage interest. So effectively if your mortgage is high it can end up costing you money to let out the property. It’s a change that came in a couple of years ago which has made in a lot less profitable to let out houses.