My wife is no longer working and, while I am at my full time job, she has agreed to run the property business.
I would then not use a solicitor, or estate agent, and she will (is already) undertaking:
= Accounts
= Advertising/finding tenants
= Correspondence letters/check in/check out/tenant issues
= Inspection, inventory etc
= Sourcing & instructing plumber/s electrician/s repairmen / cleaners
= Some (minor) repairs herself - multi-talented!
= Any other management activities relating to the property
At this stage it is a single property letting 4 rooms (under separate ASTs), having communal areas.
Clearly I would like to pay generously for this role, as I feel it important and she can add more value than a letting agent!. She is proficent in business activbities and has a senior marketing background.
But what is reasonable to pay what could be the basis for calculation?
I can only think that a letting agent would charge 12% on income and she would be doing a little more than this for me. Am I being naive in thinking that I could put her on a simple fixed salary of around £200-£250/month (property income is £1550/month at full occupation)?
This would be fully documented in the business, with direct bank payments for salary, and even an employment contract, if necessary. A fixed salary would be easier to manage than keeping a track of every specific thing she does.
For sake of doubt she currently has no ownership in the property. Actually, if this was to change later, what would be the impact if she was a beneficial owner at 50% or 99% on whatever the above figure might be.
Merry Xmas everyone. Would be very interested in your comments and thoughts.
I would then not use a solicitor, or estate agent, and she will (is already) undertaking:
= Accounts
= Advertising/finding tenants
= Correspondence letters/check in/check out/tenant issues
= Inspection, inventory etc
= Sourcing & instructing plumber/s electrician/s repairmen / cleaners
= Some (minor) repairs herself - multi-talented!
= Any other management activities relating to the property
At this stage it is a single property letting 4 rooms (under separate ASTs), having communal areas.
Clearly I would like to pay generously for this role, as I feel it important and she can add more value than a letting agent!. She is proficent in business activbities and has a senior marketing background.
But what is reasonable to pay what could be the basis for calculation?
I can only think that a letting agent would charge 12% on income and she would be doing a little more than this for me. Am I being naive in thinking that I could put her on a simple fixed salary of around £200-£250/month (property income is £1550/month at full occupation)?
This would be fully documented in the business, with direct bank payments for salary, and even an employment contract, if necessary. A fixed salary would be easier to manage than keeping a track of every specific thing she does.
For sake of doubt she currently has no ownership in the property. Actually, if this was to change later, what would be the impact if she was a beneficial owner at 50% or 99% on whatever the above figure might be.
Merry Xmas everyone. Would be very interested in your comments and thoughts.
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