When are you allowed to rent your house out?

happinessfr

I have bought my house as first time buyer last month. Due to personal reasons I need to rent the entire house out to make it my main income, (I will not stay in the house).

Am I allowed to do that immediately after I bought the house? or do I have to wait a certain years before I can rent the house out?

zapper55

Your bank gave you your mortgage rate on the assumption that you were going to be living there I presume? They would like increase the rate.

Samuel T. Cogley

Technically you need to let the lender know and convert to a buy to let mortgage.

punisher5112

Don't forget, insurance will be different, you will pay around 50% back to revenue on any rental income, registered to RTB, danger of tenant not paying rent and staying anything up to a year rent free.

There is so so much that can go wrong.

SteM

If it's a 3 bed place in a desirable location you may be financially be better off living there and renting 2 of the rooms under the rent-a-room scheme than renting the place out completely imo.

goldenhoarde

SteM wrote: »

If it's a 3 bed place in a desirable location you may be financially be better off living there and renting 2 of the rooms under the rent-a-room scheme than renting the place out completely imo.

This is a better plan (along with what punisher posted) no issues with the bank etc.

You can rent for up to 14,000 a year under this (but not a penny more) tax free and then it's licencee's you have which are easier to remove etc if needed.

To rent the full house to get 14,000 would need a rent of 1,750 a month which is 21,000 a year. This is based on paying ~50% tax on that and all that having Tennant's entail. (overholding, non payment damages etc)

A liceense has less rights ( not good for them ☹️) so notice etc is immediate if there are issues with rent etc so would be a better option

Lumen

goldenhoarde wrote: »

This is based on paying ~50% tax

True, but the OP has said that the rent will be their main income, so nowhere near that rate of tax will apply.

3DataModem

OP - take the advice above... it is a MUCH better idea at the moment to retain residence there and rent rooms up to the max, you will net more after tax, and you will retain the ability to turf out any undesirable housemates at zero notice.

TheBoyConor

You would be mad to become a landlord in this day and age.

You will find it practically impossible to evict a bad tenant.

The days of the private small time landlord are over.

Your best option is to live there and rent out the rooms.

To maximize your income from it you could convert a dining room/secondary living room if one is available into another bedroom. You could even use the living room as your bedroom and let out all of the regular bedrooms.

Tacklebox

I was thinking of renting out my house for two years and renting somewhere smaller by the coast.

I've a bigger than average house, 5 bedrooms and no mortgage.
So I romanticised about renting mine and renting a two bed farmhouse near Quilty for €100 a week and letting mine for maybe 1000 a month, €600 a month in my pocket.
If I could save even 80% of that, I'd have a good bit saved and have done the living by the wild Atlantic way thing.

But from all the hassel and changes in the law's I think I'm better off just forgetting about it.

Phileas Frog

If you used the Help to Buy, you have to live in it for 5 years.

AnRothar

Something seems off.

I have bought my house as first time buyer last month.

From here dated 2016

I have a house now and I would like to get a second house.

Or OP has 2 houses,


Now from here dated yesterday, they have the funds/income to service a mortgage on another house? (Number 3 ?).


Or has the Op actually purchased the 2nd house yet?



But yet

I need to rent the entire house out to make it my main income,

If you rent the 2nd (3rd) house and are relying on this as your "income" what is servicing the mortgage?


OP i think you need professional advice tailored to your circumstances.


Not drip fed information on the internet.

myshirt

You need the consent of the bank to rent it out, your monthly payment will likely increase. Don't even countenance trying to dodge it or circumvent. In the past you would lose your mortgage interest relief, but you are probably not even getting that.

happinessfr

AnRothar wrote: »

Something seems off.

From here dated 2016

Or OP has 2 houses,


Now from here dated yesterday, they have the funds/income to service a mortgage on another house? (Number 3 ?).


Or has the Op actually purchased the 2nd house yet?



But yet

If you rent the 2nd (3rd) house and are relying on this as your "income" what is servicing the mortgage?


OP i think you need professional advice tailored to your circumstances.


Not drip fed information on the internet.

Hi, I was asking this question on behalf of my friend. I haven't bought 2nd house yet. Please don't make wild guess based on that.

troyzer

happinessfr wrote: »

I have bought my house as first time buyer last month. Due to personal reasons I need to rent the entire house out to make it my main income, (I will not stay in the house).

Am I allowed to do that immediately after I bought the house? or do I have to wait a certain years before I can rent the house out?

happinessfr wrote: »

Hi, I was asking this question on behalf of my friend. I haven't bought 2nd house yet. Please don't make wild guess based on that.

??????