Making the most out of rental income?Make Text Bigger
We are seeking advice on how to manage a two bedroom property which we will be looking to rent out in the next 6 months and, being relatively new to this website, we hope to get some helpful tips to or tricks in making the most of our rental income.
We are currently living in a three bedroom home, and are building a house on the plot next door to ours. The build will be finished in the next 18 weeks (give or take 6 weeks) and , upon completion , we have been advised that it could rent out for £1500 per month (or thereabouts).
We have been quite lucky in getting a good deal on remortgaging our current property to include funds for this build, and so we are therefore looking at making a profit once the build is concluded and we start renting.
We would appreciate any advice or an open discussion about how best to manage these funds. E.g. how much tax would we have to pay on this additional income? Is it better to have the payments go under a limited company and separate it from our personal accounts altogether?
A factor to include here in terms of potential tax issues (or savings ?!) is that my husband is employed and I am unemployed.
We’re hoping that these early discussions will give us some food for thought on whether renting the property would pay off long term, or whether we might be better off selling it .
Suggestions and thoughts welcome from all.
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