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Scottish Trust Deed Forum
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Topic starter
03/11/2011 3:57 pm
Hi Experts and anyone else who knows -
How is variable income and expense dealt with in terms of producing the figure for monthly contributions?
As my income is from property, I am subject to occupancy levels, tenants payment being made and significant fluctuations month by month in maintenance and repairs.
I have some accounts in DM currently as a result of using credit cards to fund expenses for properties where income was insufficient.
03/11/2011 4:56 pm
Hi Pamjo.
This really comes down to the application of good sense and is a common theme where people, especially the self-employed, have variable income levels.
For example, what is the average occupancy rate that your properties have achieved over the last year or two? What do you project occupancy to be this year? What is your previous experience of rental arrears? What would an average annual repair bill total for all of the properties?
These are the types of questions that you and an adviser would consider. The idea is obviously to find the balance between making sure you're OK, that a trust deed (or other option) is sustainable, and that creditors are being treated fairly.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
03/11/2011 8:54 pm
Thanks-I was looking at monthly figures which vary hugely. If I am able to average over a year or two, that is comforting.
03/11/2011 10:11 pm
Hi Pamjo
As TDA says, your income should be worked out as an average over a period of time. The difficult thing for you, is saving money on the 'good' months, to help sustain you in the 'not so good' months. If yiou can manage that, you should be fine.
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