Hassles and problems renting residential properties

By Reg Planck

There are many reasons to let, actually, one, which is money. But there are lots of hassles, so if you want an easy life, don't bother. This list of negatives can be countered, as I will explain after the list.

• Finding a suitable property
• the management takes up far more time that you could imagine
• if you have a buy to let (btl) mortgage, you can even lose money if the rent is missed through void (empty) periods
• repairs can arrive at random and take up time and money sorting out
• you will have to spend lots of time with estate agents, builders, etc
• if you are new to being a landlord, your friends will think you are rich by dubious means - even if you aren't
• but the point of owning properties is to get capital gains after many years (or several if there is a bubble as in London and other cities) - so your gain means other people with normal jobs are being priced out of owning a home
• then you will be getting rich (or well off) by dubious means, so you lose any camaraderie you might be used to in a normal life with a normal job (whatever it is)
• you will have to do tax planning with your accountant if you go over the capital gains thresholds (profit on sale), which can be complicated and potentially expensive, and also liable to changes as tax systems are changing (I mean various tax loopholes are being closed)

Solutions

Maintenance of the let property: if you don't mind spending extra money on higher fees you can get an Estate Agent (letting agent) to do a full management service, which means they organise all repairs etc, the tenants don't have any contact with you (don't even know who you are). The letting agent will do all the repairs etc. as well as finding tenants and collecting rent.

More to follow...