Any good online tax calculators for rental income etc?

[Tony K]

Morning all.

I always planned to sell our old house when we finished the SB.

 

I am now considering whether to rent out the old house instead. I had some interesting and useful advice on here recently about the possible headaches associated with renting out, but ultimately it comes down to the sums. 

 

I have sought financial advice, but local firms seem either capable and coherent but incredibly expensive, or the direct opposite. Online searches seem to generate long articles and the official HMRC guidance, but no simple tools to draw up ballpark figures. 

 

Does anyone know of, or use, good online calculators for this type of thing?

 

Thanks

Edited February 4 by Tony K

[nod]

You just need to take into account that it won’t be your main residence when you come to sell it Where as if you sold it now it would be tax free 

[Tony K]

5 minutes ago, nod said:

You just need to take into account that it won’t be your main residence when you come to sell it Where as if you sold it now it would be tax free 

 

Thanks, I am aware of that. I am thinking more of the actual monthly sums - what would be my total income and outgoings each month once all factors are correctly included, and approached in a sensible manner. That sort of thing. 

[ProDave]

You will need to insure the building, and that will have to be a landlords policy not domestic.

 

If you get an agent to collect the rent they will typically take 10% to 15% of the rent as commission.

 

Statutory annual checks like smoke alarms, PAT testing, EICR and Gas safe.

 

Ongoing repairs and maintenance.

 

During void periods YOU will have to pay utility bills and council tax.

 

[JamesP]

I have rented out property since 1988.

 

As @ProDave says, Building Insurance, Annual Gas certificate and service, EICR.

 

Depending on the borough it might be classed an HMO and require a licence, ours wanted fire doors etc. 

 

If relatively maintenance free and in good order I would give it to an agent to find suitable tenants, ours charged 8% to collect the rent.

 

In the future I think their will be EPC requirements and more interference  from the council.

Private landlords are on the list......

Sold one in 2023 and did pay a CGT bill on the years the property was rented out as it was our main home initially.

 

Edited February 4 by JamesP

[Pocster]

As a LL I would consider selling 

RRB on the way - more hassle costs , you’ll want rent guarantee insurance.

Sell it , pay CGT , then make maybe 5% on a hassle free investment?

[Bramco]

3 hours ago, Tony K said:

Does anyone know of, or use, good online calculators for this type of thing?

 

There must be some around - you're favourite search engine should find them.

 

It's quite easy to set up a quick Excel sheet to do it though.

 

Buildings insurance - we pay about £15/month for 3 bed semis.  Tenant find is roughly a month's rent - maybe less since rents have jumped a lot recently. As others have said, using an agent will be about 10% to 15% of the monthly rental. Don't forget empty periods where you'll be paying the utilities bills and council tax. Each month of downtime eats into the annual profit (and don't forget to add a month for another tenant find).

 

If you aren't local, or can't do DIY, then there's finding tradespeople to fix things. And over time, you'll get at least one tenant who wrecks the place.

 

You can take maintenance costs off the rental income and costs for professionals, so tenant find or agency fees - but then you have to add the profit to your income and pay tax at your marginal rate, 20% or 40%.

 

Oh and there's all the other things folks have mentioned - HMO, council landlord fees, etc. etc. etc.

 

And then when you eventually decide you've had enough, there's CGT. You pay more and unlike farmers who have 10 years to pay, you have 2 months to complete the return and pay.

 

George Osborne started the 'government hates landlords' drive - it's not what it used to be. But then again with rents skyrocketing you may be daft not to.

[Pocster]

Today 

 

https://m.spareroom.co.uk/statistics/landlords-confidence?utm_campaign=newsletter_lolsagents_inactive_feb-1&utm_medium=email&utm_source=crm

 

 

@Tony K ; hmo ? ( it will be or needs converting ? ) , if conversion article 4 ?

bills inclusive ?

Rent you expect ? 
Profit after CGT if sold ?

Current property value ?

Rental market in your area ? E.g students ?

Cost of mortgage per month ? Residential , btl , hmo ?? I.e remortgage required ?

 

More detail you give more accurate a figure on whether it’s worth it . Remember it’s return vs risk .

Edited February 4 by Pocster

[Tony K]

1 hour ago, Bramco said:

 

There must be some around - you're favourite search engine should find them.

 

 

 

Not so far it hasn't! It is exactly the sort of things you list that I would miss if I used the ones I have found!

[Bramco]

Try DuckDuckGo.

 

One came up on calculator.net - it's in $s but the principles are the same.

 

Any calculator is going to ask you what your insurance costs are, professional services costs and maintenance costs - when you've got those, you might as well put them in Excel.  You can get quotes for insurance, tenant find or management fees and make estimates of maintenance costs.

 

Maybe you need to talk to a few local letting agents.

[nod]

3 hours ago, Tony K said:

 

Thanks, I am aware of that. I am thinking more of the actual monthly sums - what would be my total income and outgoings each month once all factors are correctly included, and approached in a sensible manner. That sort of thing. After 2( years of owning rental properties We are slowly selling ours off 

Which wasn’t the plan But due to new legislation If a tenant decides not to pay there rent There’s very little you can do 

[Tony K]

1 hour ago, nod said:

4 hours ago, Tony K said:

 

Thanks, I am aware of that. I am thinking more of the actual monthly sums - what would be my total income and outgoings each month once all factors are correctly included, and approached in a sensible manner. That sort of thing. After 2( years of owning rental properties We are slowly selling ours off 

Which wasn’t the plan But due to new legislation If a tenant decides not to pay there rent There’s very little you can do 

 

I know a couple of people on the other side of it, they have been long term renters, then their landlords decided to sell their places, perhaps due to some of the regulations everyone here is concerned about.

 

When that happened, these people found there was very, very little by way of rental property available locally, and that it was very expensive.

 

Doesn't sound like the situation suits anyone.

Edited February 4 by Tony K

[nod]

12 minutes ago, Tony K said:

 

I know a couple of people on the other side of it, they have been long term renters, then their landlords decided to sell their places, perhaps due to some of the regulations everyone here is concerned about.

 

When that happened, these people found there was very, very little by way of rental property available locally, and that it was very expensive.

 

Doesn't sound like the situation suits anyone.

Yes Rents are crazy here also 

With people bidding higher to secure a tenancy 

Ive had between 10-15 properties for the last 25 years No problems or bad tenants It was going to be our pension 

Both governments are at fault 

12 months to get a tenant out that has decided to play the system and getting rid of section 21 is causing landlords to sell up 

[ProDave]

14 minutes ago, Tony K said:

 

I know a couple of people on the other side of it, they have been long term renters, then their landlords decided to sell their places, perhaps due to some of the regulations everyone here is concerned about.

 

When that happened, these people found there was very, very little by way of rental property available locally, and that it was very expensive.

 

Doesn't sound like the situation suits anyone.

This is what happens when the people that make the rules don't think it through.

 

They want tenants to have security of tenure which translates to making it hard or impossible to evict a bad tenant.  Landlords fearing getting stuck with a bad non paying tenant decide to sell up before the new rules come into force.  Suddenly there is a diminishing supply of rented properties with increasing demand.

 

Add in more regulation and cost, and requirements for minimum energy performance, and more landlords quit because they do not want the extra costs and in many cases can't afford to upgrade properties to meet the new EPC requirements.

 

Don't blame the fed up landlords, blame the rule makers who don't think through their plans.

 

Like some others on here, I would not advise you letting your property, I am glad to no longer be a landlord.

 

With the cost of rent now, can "long term renters" not manage to buy their own property?  (we sold our last rental to the tenant)

[Pocster]

@Tony K I was trying to” subtly “ put you off 😊

[Tony K]

26 minutes ago, Pocster said:

@Tony K I was trying to” subtly “ put you off 😊

 

Ha! My wife says I don't understand subtlety! 

 

I think that's what she said anyway. Wasn't really listening properly.

 

Which was your post again?

😉

 

[nod]

1 hour ago, ProDave said:

This is what happens when the people that make the rules don't think it through.

 

They want tenants to have security of tenure which translates to making it hard or impossible to evict a bad tenant.  Landlords fearing getting stuck with a bad non paying tenant decide to sell up before the new rules come into force.  Suddenly there is a diminishing supply of rented properties with increasing demand.

 

Add in more regulation and cost, and requirements for minimum energy performance, and more landlords quit because they do not want the extra costs and in many cases can't afford to upgrade properties to meet the new EPC requirements.

 

Don't blame the fed up landlords, blame the rule makers who don't think through their plans.

 

Like some others on here, I would not advise you letting your property, I am glad to no longer be a landlord.

 

With the cost of rent now, can "long term renters" not manage to buy their own property?  (we sold our last rental to the tenant)

Yes We had a policy of no pets and no smoking in the house and no DHS 

You can’t even specify that now