1. Landlord Research
The landlord is not an easy job, in 2008 due to the financial crisis; landlords have to rent the property rather than selling it because of the weak market. It is better to have a trustworthy agent who can do property decisions on your behalf either a whole portfolio, single property or an entire block. You should be cautious that only instructing agent on letting the property is not a good task, the agent should provide you with best quick rental, good quality, and a referenced full tenant. Always look for a reputable and a good letting agent. It is better to follow association of national landlords and area property mark as they keep you informed of support, advice, and services.
2. Tax Credit
When purchasing property, investors should take into account capital gains along with the duty needs of a tax stamp. You should have expenses records of last 6 years such as receipts, invoices, and expenses as for tax calculation there are huge costs for the profits. Being a letting agent, you can have HMRC exemptions if you are not UK resident. You can’t claim a tax credit on the payment of interest rate but you can on the income of full rental. You can enjoy tax benefits if you have large property portfolios with excellent taxpayer rate. It is not easy; make sure you are making enough benefits by disbursing the exact tax amount.
3. Landlord Calculations
It is better to do all the calculations to evaluate the ultimate return on your property investment. If you take into account only the borrowing cost, the investors projected high profits like in past few years. One should also consider other costs such as insurance premiums, service charges, gent fees of letting, fixture replacement, ground rent, taxes and void period. The standard issue lies with the misjudgement of yield and net rent. The experienced investors always want income to be more than the costs and borrowing. They make sure that income will give those profits even if some unexpected costs arise. You can do the valuation from experts that what will be the average rent of your property.
4. Make the Property with Good Rent
If the property is not good as doesn’t have the required amenities and good transport, great risk is involved in getting a less rental. Your agent can give you a better advice on letting property such as getting the maximum rent by furnishing the property well.
5. Insurance and Mortgages
Over the past few years, insurance and mortgages interest rates were low, but they will rise according to experts. We are not sure of big rise, but many landlords might not be able to equilibrium budgets against the expenses and increase rents will not counterbalance it. Always look for special mortgage policies such as rent loss, risks, heating, malicious damage, plumbing, and appliances.
6. Tenant Referencing
Referencing of the tenant is very important as there are many bad stories associated with tenants. Your letting agency will do the job for you, they will do the credit checks and follow-ups the reference and thus deserved the fee. Paperwork should be accurate, legal and thorough inventories are also a wise decision.
7. Knowing the Audience
Do your research and find out the audience. You can take help from national statistics office to find out the densities and growth of working people who are actually viewing for rental property. You can use this data and find out the ideal property in an area with great demand and high rents. As a landlord make use of a property type that would be suitable for that age group.
8. Be Truthful
Always work on the cost and rental expected yield before asking for the rent. You can’t guarantee rent as even a hot property can come with bad times. As a landlord, you can face rent loss if the tenant is not there and you can witness huge overhaul costs if some breakage is there. Successful landlord takes property as the liability believing that it will clear its own obligation and can make income with huge profits.
9. No Reliance on Rent Only
As a tenant, you can make the property value and rent quite attractive for the buyer and tenant by improving it. You can add value to the property by maximizing light and space with the help of changes and renovations. One can overcome the losses by limiting the improvement cost to the 10% of the rental price.
10. The Landlord Should Be Good
You can make huge profits on your investment by providing the superb services for your tenants. If your tenant is happy, they will stay with you for long terms, provides you with good income, you don’t have to inquire successively cost in finding a new tenant which involves excellent paperwork such as tenancy agreements, reference checks, and inventories. Moreover, there will be no tension in your property investment.