Being a management agent

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Being a management agent

    So I have 3 properties in my own name and am close to completing on a property in my new limited company. I want the new company to not only own and rent the new property but also manage the other 3 properties at a market rate of 10%. As the company will own and rent a property it will be a valid business so will be allowed (As apposed to just setting up a company to manage which would be seen as tax avoidance).

    Having looked into it I believe as a management agent I will need to sign up to one of the two redress schemes... Is there anything else I need to do?

    #2
    There are, at least, moves towards requiring client money accounts.

    The schemes will require you to have documented complaints procedures.

    Comment


      #3
      Thanks, I did see that which is why it will be property management not rent collection, so dealing with tenants phone calls, sorting out repairs and doing things like reminders for gas safety certificate. A complaints procedure should be pretty easy to put together.

      Comment


        #4
        Originally posted by catdog1121 View Post
        I want the new company to not only own and rent the new property but also manage the other 3 properties at a market rate of 10%. As the company will own and rent a property it will be a valid business so will be allowed (As apposed to just setting up a company to manage which would be seen as tax avoidance).
        That's probably not going to attract too much attention, but it's cutting it quite fine.

        The "agent" will have one customer, who is the owner of the business.
        Even if the business is carried out at a market rate, it's hardly a commercial arrangement.
        And the only reason I can see for the arrangement is to introduce a new expense allowable against your personal tax.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          I have checked and it is ok as the company will own and rent out a property it is acting as a viable business in its own right, if the only business was to manage the directors properties then yes that would not be allowed.

          It can very easily be argued the reason for the arrangement is to be part of the redress scheme and rather than having to apply twice, once as myself and then again as the company... This will become even more apparent if as suspected in the November budget they announce that all tenants must have redress via a scheme so those landlords self managing will have to register with a redress scheme. The amount charged is actually below the local market rate. It can also be argued it gives a more professional look to my personal rentals by having a management agent.

          Yes it switches the tax liability from me to the company but the only reason I am buying my next property in the company is to do that exact thing, it is acceptable providing the business is a valid business and that no more than market rate is charged.

          Comment

          Latest Activity

          Collapse

          • Can I rent out my leasehold flat?
            bonnyb1
            Hello,

            I am having lots of problems in extending a lease on my flat at the moment (66 years left) so thinking of renting it out for a year while I go through the section 42/tribunal route but not sure if I am allowed.

            I am going to to put some of the wording I have found within...
            11-10-2018, 16:35 PM
          • Reply to Can I rent out my leasehold flat?
            bonnyb1
            thank you for your reply
            12-10-2018, 11:50 AM
          • estate agents phone system query
            HP mum
            Very bizarre question here.
            I normally withhold my mobile number - especially when calling estate agents as I don't want them constantly then hounding me.
            That was exactly the case when I rang one estate agent recently - the one that we all love to hate!
            Yet, the receptionist said...
            02-10-2018, 13:37 PM
          • Reply to estate agents phone system query
            HP mum
            A receptionist would not know the sound of my voice nor would they have any 'normal' way of knowing who I am. My mobile contract allows me to withhold my number. Their system clearly has had something done to it!! Interesting?
            12-10-2018, 11:30 AM
          • Reply to Can I rent out my leasehold flat?
            leaseholder64
            Clause (3) is confusing, as seems to be a covenant by the lessor in a part of the lease defining a lessee's covenant.

            Providing the rent is high enough (which it will be unless the rest of the lease is weird), you can sub-let to a single family, for the next 59 years. After that, you...
            11-10-2018, 17:46 PM
          • Fees
            Dino
            Would I be charged a fee if I cancel a letting agent contract before they find me a tennant, For viewings and advertising the property?

            The contract was signed online and states I have 14 days to cancel.
            Thanks
            Dino...
            11-10-2018, 10:02 AM
          • Reply to Fees
            jpkeates
            It depends what the terms of the contract are.
            If they've done some work for you, they're likely to want to be paid something.
            11-10-2018, 13:20 PM
          • How long is a contract valid?
            37eeyore
            I rent out two properties and use the same agent for both. I started renting property A in 2010 and am on the third set of tenants. The current tenants have been in there for five years. Property B has only had one set of tenants who have been in for four years. The tenants in property B were due to...
            10-10-2018, 13:16 PM
          • Reply to How long is a contract valid?
            37eeyore
            I had looked at the contract again and came to the same conclusion. I don't think it would cover property B but that doesn't really matter now.

            Part 4 of the termination clause seems to say that even if I cancel, I still have to pay if the tenant stays in the property.

            The...
            11-10-2018, 10:02 AM
          • Reply to How long is a contract valid?
            jpkeates
            As a general principle, an agent is not allowed to make money from their principle's assets or property.
            The interest or commission would automatically be the principles.
            Whether or not it's a pain doesn't change that (the sensible thing to do would be to keep the money in a non-interest...
            11-10-2018, 09:48 AM
          Working...
          X