Jump to content
wookash

Opportunity to sub-let 3 bedroom house! But wait.. how to do it?!

Recommended Posts

Hello, property aficionados!

I have an opportunity to rent a whole property in which I currently rent a room. I have no experience in BTL or renting the properties. I'm genuinely a blank page when it comes to properties. Hence I'm asking for advice!

The landlord offered me to rent his whole property (directly from himself, not via letting agency). It is a THREE small beds end-terraced house. My idea is to accept his offer but then sub-rent all bedrooms and I would simply move out. I would then manage the property and sub-lets. But because I'm inexperienced I have few questions here:

  1. How to convince the landlord to give me permission to sub-let his property? It is quite a sensitive topic but I'd like to know which arguments could be the best to use here. I need to be ready to answer questions like: Why can't landlord do it himself?
  2. How to deal with taxes? Do I need to pay any tax from the rental income?
  3. How long should the contracts with potential occupants be?
  4. Where do I get a Lodger's agreement from?
  5. How to negotiate extra money from the landlord to refresh bedrooms (paint, new carpets etc)?
  6. What about insurance? Should I buy insurance or should occupants buy it themselves? What type of insurance would be recommended here?

Moreover:

I would like to move out of this property then. I would like to move about 200mils to a different city. How difficult it would be to manage the property then? Is it still a sensible thing for such a newbie like me do it?

Any comments, the advice is highly appreciated as this is my first post on this forum and also I'm fresh in the topic of real estate.

 

 

Share this post


Link to post
Share on other sites

Hey wookash,

the type of deal you have there is a rent to rent. You won’t be able to rent that with a normal tenancy agreement as subletting is illegal. But what you could do is rent that with a management contract and then manage the tenants that you put in would pay the rent to you. You’d then pay the landlord a fixed amount (which would usually be below market rent as you’d be fixing a contract for 3 - 5 years and paying any small renovation costs upfront). 

Youd be paying tax on the income (not sure what type). 

Insurance would also be needed there are some necessary ones and some nice to haves, again I’m not doing this strategy so I can’t say exactly which ones. 

I sense that a bit more research in needed on your end on the rent to rent strategy. You could pay a management company to then manage it for you (I think) if the numbers stacked up but a difficult strategy to do from so far away when starting out without previous knowledge. 

Hope this has helped in someway. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×