What makes a good letting agent? Meeting the very simple (but challenging) needs of landlords – namely, to find people who will commit to a long term tenancy, pay their rent on time and not cause problems for their neighbours or landlord! 

Not an unreasonable set of expectations, but success varies from one letting agent to another and that’s down to how they run their business. You’ll find lots of examples of ‘top questions’ to ask your letting agent, but none of them quite get to the heart of the issue for landlords. Let me explain.

Having the right accreditations

We’ve got a list of accreditations and memberships that runs the width of our website: NLA, UKALA, Safe Agent, PRS, My Deposits, ICO … they’re all important and should have some sway with landlords, because they stand for best practice. For example, UKALA undertakes an annual review of important areas such as our client accounts and deposit protection. As an NLA Accredited Landlord I have demonstrated my knowledge and experience by passing their competency exams. Also, many representative bodies do their best to give us a much needed voice with Government.

Like awards however, they’re no real guarantee of performance or value for money. As Groucho Marx said “I don’t want to belong to any club that will accept me as a member.” We clearly don’t feel that strongly (!) but accreditation is no substitute for running a business with accountability at its core.

Fully trained staff

The key to a good letting agent lies in its people. It’s massively important to have trained staff – so long as the training is fit for purpose. Staff should be trained to do very specific jobs and being a ‘team’ shouldn’t mean everyone ‘mucking in’. Allowing staff to swap tasks and ‘do a bit of everything’ as the need arises is inefficient and costly. It might look like good customer service but no way is it really serving the customer.

The good letting agent sets specific roles for their staff, such as Tenant On-boarding, Account Management, Legal Compliance, Maintenance, Viewings, Applicant Progression, Complaints Handling, etc. In fulfilling them properly, we’re accountable not only to our clients but also to each other.

Efficiency-driven processes  

Our processes and systems help us to do our job excellently and we certainly don’t hide behind them. For example, we gave considerable thought to the changes we needed to make to our business during the recent COVID-19 lockdown. The best way to support our landlords and their tenants was our only goal. Our solutions ranged from virtual video tours to get vacant properties let, to step-by-step guidance for tenants genuinely worried about their financial stability … oh, and knowing when a tenant is trying it on!

However, efficient processes are no substitute for being alert, agile and dealing with tasks as they arise, rather than letting them mount up. Take the new legislation that’s waiting in the wings; landlords will be required to engage in a series of pre-action protocols before attempting to gain possession of a property due to the tenant failing to pay their rent. The good letting agent must be ready with the detail, so their clients don’t fall foul of the law. Processes only work if accountability lies at the heart of them.

Technology that works

Ah yes, technology … this is where ‘all the gear and no idea’ springs to mind! We are as automated as we need to be:

• Unique automated new tenant enquiry response system. This means we respond to every single new tenant enquiry (how many other agents can make that claim? According to Zoopla it can be as low as 40%!)
• Systemised tenant on-boarding process
• Electronic contract signing
• VoiP telecom solution
• Cloud software

Technology will only enable ‘working smarter’ if it’s customised to our needs, which in turn benefits our clients and their rental business.

Accountability makes a good letting agent

Accountability – that’s what makes a good letting agent; from charging fair fees, to being transparent and acting in the best interests of the landlord. For this reason, the large letting agent with multiple offices is not necessarily the right choice. Size of organisation might have been a ‘guarantee’ of resilience back in the day but COVID-19 has put that firmly to rest!

Neither is buying power a given. Take our market-leading Rental Guarantee & Legal Expenses Cover; we don’t qualify for this insurance through the volume of take-up, we’ve earned the ability to offer this level of cover through our success as diligent, forward-thinking letting agents.

Look for evidence of accountability and you’ll find the kind of letting agent who will help you achieve your business and lifestyle goals.

I make no apology for this tabloid-style blog that seeks to frighten its readers by listing the most ‘popular’ ways a landlord can break the law!

Every business has its own industry-specific legislation and regulations. For landlords, however, it’s a whole new ball-game. I’ve written before about how much the private rental sector is subjected to a never ending stream of legislation. It’s true – blink and you miss a new Act, an amendment, or deadline.

Being a landlord – of even just one property – can be a full time job. After all, you’re running a business with all the skilled management, marketing and admin roles you need to adopt to make it a profitable one. Then there’s the legislation for landlords… frankly you need help.

There’s lots of guidance out there on your responsibilities as a landlord – all of it well-meaning, but none of it stressing the insidious nature of neglecting just one element of your legal duties. Even the government website fails to highlight how one simple ‘error’ can in fact snowball into a frightening penalty-fest.

So I feel it’s my duty as a responsible letting agent to highlight where the legal trip wires can be found. There are 19 (at the moment).

Security deposit 

I start with an area of law that catches out the poor record-keeper. Even £1 over an allowed amount could land you a hefty fine. If you make the same mistake with multiple tenants, you’ll reach the maximum fine (£30,000) in no time. Then, it’s the threat of a custodial sentence.

1. Not protecting a security deposit in an authorised scheme within 30 days of receipt.

Penalty: up to 3 x the deposit.

2. Not serving prescribed information relating to the security deposit within 30 days of receipt.

Penalty: up to 3 x the security deposit and loss of Section 21 possession rights.

3. Taking more than 5 weeks’ rent as security deposit (or 6 weeks’ rent if the annual rent exceeds £50,000).

Penalty: up to £5,000 for the first offence (civil), or £30,000 for subsequent offences (criminal) plus a banning order, unless your local authority wants to prosecute the criminal offence, in which case it could carry a custodial sentence.

4. Renewing a tenancy contract without returning the amount of the security deposit that exceeds 5 weeks’ rent.

Penalty: up to £5,000 for the first offence (civil), or £30,000 for subsequent offences (criminal) plus a banning order, unless your local authority wants to prosecute the criminal offence, in which case it could carry a custodial sentence.

Fees and charges

The Tenant Fees Act 2019 makes it very clear what landlords can charge their tenants (a ‘permitted payment’). To me, it’s a ridiculous Act and we’ve had to be both strategic and detailed in anticipating every eventuality so our fee is both competitive and inclusive.

5. Charging administration / referencing / credit check fees.

Penalty: up to £5,000 for the first offence (civil), or £30,000 for subsequent offences (criminal) plus a banning order, unless your local authority wants to prosecute the criminal offence, in which case it could carry a custodial sentence..

6. Charging extra for bills and making a profit.

Penalty: up to £5,000 for the first offence (civil), or £30,000 for subsequent offences (criminal) plus a banning order, unless your local authority wants to prosecute the criminal offence, in which case it could carry a custodial sentence.

Safety, maintenance and repairs 

This can be ‘rogue landlord’ territory – and with good reason.

7. Not checking gas appliances every year.

Penalty: imprisonment or a fine of up to £20 000, or both, for each offence. If the case is then referred to the Crown Court the maximum penalty may be imprisonment, or an unlimited fine, or both.

8. Not ensuring the electrical installation is safe at the start and throughout a tenancy.

Penalty: fine of up to £30,000.

9. Not providing working smoke alarms on each level of the property.

Penalty: fine up to £5,000.

10. Breaching health and safety legislation (HHSRS), eg overcrowding.

Penalty: fine of up to £30,000 for each offence and confiscation of up to 12 months’ rent received under a Rent Repayment Order.

Being an ethical and profitable landlord are not mutually exclusive. There’s no excuse for endangering people’s lives in the (mistaken) belief you are saving money.

Due diligence

Few people like admin but if you really do struggle with the detail, then the law will have a field day with you:

11. Not providing all the prescribed tenancy information before the start of a tenancy. You can choose between dozens of slot game categories, as well as slot variations from NetEnt, Microgaming, https://clickmiamibeach.com/ IGT and a number of others.

Penalty: up to 3 x the security deposit and loss of Section 21 possession rights.

12. Advertising a property to rent without an EPC.

Penalty: fixed penalty of £200 per dwelling and loss of Section 21 Possession rights.

13. Renting a property with an EPC rating below E.

Penalty: fine up to £4,000 and/or a Publication Penalty.

14. Operating an unlicensed HMO.

Penalty: fine of up to £20,000.

15. Not checking tenants’ Right to Rent.

Penalty: unlimited fine and up to 5 years in prison.

16. Not serving the MHCLG How to Rent guide before a tenancy starts.

Penalty: up to 3 x the security deposit and loss of Section 21 possession rights.

17. Incorrectly claiming finance costs on your tax return.

Penalty: HMRC will kindly work that out for you and then throw the book at you!

Tenant relationship

These last 2 are pure common sense, but given the horror stories that hit the press on a regular basis, one can only assume education in basic decency is necessary:

18. Entering the property without proper notice (except in an emergency).

Penalty: fine up to £5,000 and 6 months in prison (Protection from Eviction Act 1977).

19. Removing tenant’s belongings or changing the locks.

Penalty: fine up to £5,000 and 6 months in prison (Protection from Eviction Act 1977).

If the landlord tenant relationship has failed so epically that you have to resort to the above, you probably shouldn’t be managing your own rental property anyway!

Legislation for landlords – it won’t go away

You’ll notice how many of the above breaches of the law carry an additional loss of Section 21 possession rights. So, notwithstanding the penalty you incur, you also impact upon your own legal rights!

Being a landlord is an important role in society. It also has every chance of being a profitable one, but only for those landlords who conduct themselves as business-owners. Typically, they call on professionals to carry out specialist work, such as keeping on top of legislation and management.

 

 

Landlord in lockdown or business owner – which title suits your particular situation right now as we transition into a new COVID-19 shaped world? If, like many of our landlord clients, your rental income is guaranteed – even during lockdown – you’ve definitely embraced the ‘business-owner’ mindset and the future will be looking less grim.

Being a business-owner is a concept that many landlords struggle to accept. It’s a fact though, if you rent out a private property, you’re running a business. I’m not trying to alarm or fill people’s heads with grandiose ideas. Far from it, I want to encourage landlords to adopt a different mindset and increase their chances of earning a decent income from their property investment – and now, is the time to embrace this mindset. Live casino games https://clickmiamibeach.com/ will give you a greater chance of winning and a quicker payout.

Keeping your property business on track 

Instead of Covid-19 putting business on hold for us and our clients, it’s shone a light on how critical our approach has been in keeping our clients’ property businesses on track. Here are 3 examples for you:

1. Zero rent arrears

To date, not one single tenant of ours is behind with their rent. We’ve been proactive in communicating with tenants so they understand their obligations and where they stand since the lockdown started in March. The media and various spokespeople have succeeded in misleading and panicking people about the legal situation (and ethics) surrounding ‘rent holidays’ and the suspension of new evictions. So, we set the record straight very early on. We also gave some essential advice surrounding possible loss of income and eligibility for sick pay, redundancy and universal credit.

Essentially, we stress how important it is that tenants get in touch the minute they even think they might struggle to pay the rent. One family did just that and, as a result of our advice and diligence, 3 of the 4 adult tenants immediately got new jobs with Tesco and have succeeded in maintaining a reasonable income and – most importantly – not fallen behind with their rent!

I’m not claiming that we hold the answer to zero rent arrears, nor that tenants aren’t feeling the pinch. I am affirming that maintaining a good landlord tenant relationship with crystal clear communication and a sympathetic ear is vital. A business mindset, in other words.

2. Rent Guarantee

Many of our landlord clients have wisely chosen to benefit from our Rental Guarantee and Legal Expenses Cover, because it forms a major part of our ‘designing out risk’ approach. Underwritten by our business insurer, our Rental Guarantee reflects our reputation for due diligence. We offer a very high level of cover at a very competitive cost. At around 1% of a landlord’s annual rental income, it’s yet more evidence of our success in protecting our clients’ rental income. Think less ‘landlords in lockdown’, more ‘professional business-owners’.

 3. Professional HD video virtual property tours 

This is a really successful service that we have previously offered to overseas tenants who are planning to move to Milton Keynes. We’ve simply extended the service to replace real viewings during the current restrictions and successfully placed tenants in 11 rental properties.

Once again, this is where doing things properly really matters: professional, true-to-life HD video virtual property tours; careful and thorough negotiations.

Judging by the ‘thank you’ cards received, we’ve also succeeded in making both our landlords and tenants happy and relieved, and we’ve given them one less thing to worry about!

Thriving or surviving?

The above examples of diligence are not just for disaster scenarios – we’ve always had these in place. Now, as we emerge into a new COVID-19 influenced world, the need for a proper business approach to being a landlord is clearly absolutely vital.

These are our top 4 top tips:

1. Use qualified people to help you run your business – from electrical wiring and gas installation to letting and management. DIY should be confined to putting up shelves (and even then…). Fair fees + professional service = long term security of income.
2. Have respect for the law. This is one of the busiest areas of law – our recent legal briefing highlights 13 new pieces of legislation alone. Being law abiding is not an option (unless you want some hefty sentences including custodial). Keeping up with the law isn’t for amateurs, however
3. Recognise the need for a good relationship with your tenants. It’s about managing expectations and having enough experience to anticipate every scenario.
4. Talk to an expert in landlord-related tax. No, you can’t get relief on finance but you can claim expenses (assuming you’ve been keeping careful record of everything).

No more landlord in lockdown

Running your rental property business like a pro means doing things properly and using professionals to help you make the most of your business. You’re still in charge, but like all successful business people, you delegate. Rid yourself of hassle, reclaim your time and, even if you own just one property, reap tangible rewards.

It’s a mindset: thinking less like a landlord and more like a successful business person.

Amid the awfulness of Covid-19, I keep thinking about the ever-present problem of risk – our approach to it and how to protect ourselves from its effect. Will such a scenario befall us again? Probably, who knows?

From a private rental point of view, I do know that being cool-headed and making every effort to design out risk for landlords is the sensible response. Being an ethical landlord is a critical role in society, but you have a responsibility to be a profitable one too (take note Shelter). Otherwise, no income = no property to rent out to people in need of a home.

Whether it’s a consequence of Covid-19, or something far less universally horrifying, designing out the risk must become second nature to landlords.

Reducing risk from 100% to 0%

Formula 1 is one of the most dangerous sports in the world, but even they don’t entertain an “it’ll never happen to me” attitude, because they know it could. The decisions they make are based on assessment and then management of the risk involved. Use promo codes and join the fun as soon https://starlitenewsng.com/casino-royale-on-hulu-8-8-18/ as you can. Running a private rental business isn’t a dangerous sport! Designing out the risk for landlords is entirely achievable. The goal of https://casillascontracting.us/is-there-a-casino-in-cincinnati-ohio/ this bonus is to draw new players to the casino. We do it all the time, both as a letting agent and as a landlord. Here’s the process:

1. Designing out as much risk as possible (75% risk reduction) 

Achieved through comprehensive tenant referencing, requesting Guarantors, watertight contracts and documentation, checking and tracking rent collection by Direct Debit, management of the landlord tenant relationship, effective communication, quarterly property inspections, etc.

2. Assess remaining risk and determine how to deal with it (20% risk reduction)

Achieved through diligence, automated processes, compliance and safety certification, understanding landlord and tenant law, rules around benefits, proactive management of tenancy issues and disputes, etc.

 3. Address how to manage the latent risk (remaining 5% risk)

Protect against any remaining latent risk that cannot be controlled or designed out – in this case our Rental Guarantee.

Rental Guarantee – how reassuring is that?

Having a tenant default on paying their rent can be a regular occurrence for many landlords in ‘normal’ times. In the current climate, the risk to landlords is even greater, added to which recently passed emergency legislation prevents you from starting court proceedings to evict tenants for at least 3 months. Choosing our Rental Guarantee removes the first risk, so the disaster-related second one is irrelevant! We hope that our guide will help you understand how this industry works and https://tpashop.com/what-poker-hands-to-play-preflop/ you will have a better understanding of online casinos.

Our Rental Guarantee is underwritten by our business insurer – so it’s our risk, not the risk to our individual landlords – because they recognise that their exposure to risk is dramatically reduced thanks to our diligence (items 1 and 2 above). This faith in The Right Place is reflected in the very high level of cover and competitive cost of our Rental Guarantee – at around 1% of your annual rental income it’s always been reasonable, but in the current climate, it’s an absolute lifeline!

Case study: rent at risk

When the Coronavirus pandemic first broke, we took a detailed and phased approach to communicating with our tenants to help them through any problems caused by the lockdown, thereby enabling them to take advantage of any government assistance as soon as possible and reassuring them that help would be available to them if their income suffered.

One family (4 adults and 2 children) followed our instructions and headed off disaster very successfully indeed. They got in touch following 3 of the adults losing their jobs at the same time. As securing some kind of income was vital, we directed them to a famous supermarket’s recruitment campaign with the result that all 3 were hired.

We then agreed a different payment date with the landlord (who incidentally had taken our Rental Guarantee, so her income was protected in any case). Within the space of 2 days, the family’s income was secured for the foreseeable future, rent payment continued (albeit a few days late each month for the next 3 months) and a claim against the Rental Guarantee was avoided … and all in time for the Easter break!

Not everyone will be as fortunate as this family in getting replacement jobs. It features over casino games from over 10 casino software providers like NetEnt, Rush, https://kellyrobbins.net/planet-hollywood-las-vegas-poker-room/ Konami or Bally. However, our policy of designing out the risk to landlords means everyone has improved odds against hardship. Comps earned online include dining https://www.fontdload.com/how-much-money-do-you-start-with-in-blackjack/ and hotel stays at Tropicana.

Be low risk, be strategic

Though rent default is the most significant risk to your income as a landlord, there are other areas that can cause unnecessary expense if you take a relaxed approach:

Risk 1: new gas and electricity safety regulations

There’s now an inevitable backlog for lapsed and new safety certificates – unfortunately, the Covid-19 lockdown does not let you off the hook. If your property doesn’t have the correct safety certificates you’re breaking the law, because your tenants are at risk (that word again…). When the current lockdown restrictions are eventually lifted, you and hundreds of other landlords will be seeking the services of the same few tradespeople.   

Risk 2: no physical viewings

Not being able to physically show potential tenants around a property is a drawback. Cue our ‘virtual tour’ videos, which overseas tenants rely on all the time to find a suitable home in Milton Keynes. We’re skilled at creating professional videos that promote properties in a tenant-targeted way and managing the different issues that virtual negotiations can raise.

Being low risk makes economic sense for every business, but for landlords it’s 100% essential. As a sector, we aren’t universally loved and consequently we come in for the kind of scrutiny rarely levelled at other business groups. Add to that a crisis such as Covid-19 and the need for planning and pragmatism is even more important.

The Right Place has always been agile and resourceful, our antennae sensitive to the risks for landlords. We’re also enthusiastic early-adopters of technology and automation, all of which means we are the low risk letting agency – crisis or no crisis.

Choosing the right buy-to-let property depends upon ticking a number of boxes relating to you and your particular circumstances. What’s right for you personally is what matters.  

This is a medium to long term investment, so get a number of things settled in your mind first. Be clear where your buy-to-let property fits into your life. The Mystery Jackpot Cards is a four-level mystery jackpot offering players the opportunity https://tpashop.com/cuales-son-los-juegos-de-un-casino/ to cash in on progressive wins. Will it help top up (or substitute) your pension, or do you want it to provide you with an income in the short term? Are you investing mainly for income, or capital growth? Can you afford to subsidise your investment if the rental income doesn’t cover the outgoings? How much time can you devote to working in your own property business? Are you planning to ‘buy and hold’, or ‘buy and sell’? 

Also, it’s important to ignore your personal preferences! If you are buying property purely as a means of rental income, your needs and wants are irrelevant. For example, your desire for a house set in a secluded area will not suit tenants who commute by train to London every day.

What kind of tenant do you want?

Clearly, you can’t appeal to everyone, so having your ideal tenant in mind is critical to finding the right buy-to-let property. In your https://starlitenewsng.com/the-big-m-casino-ship-i/ new casino account you will find the option to upload your ID documents and proof of address. The best street in town is not necessarily the best investment for you as a landlord. You want it to be relatively easy to attract people so they stay and regard your property as their home. Tenants come with their own wish list and understanding them will help you reach your ideal type of tenant:

• ‘Professionals’: these are people who work every day and either have one or more cars to park and / or need to be close to public transport links. They’re also likely to want bars, clubs and restaurants close at hand.
• Families: a garden and family room, being near schools, shops and cinemas are important for children.
• Family or friends: you might be able to help someone personally close to you. If they’ve got families themselves or commute then all of the above applies. If they are an elderly person, accessibility and access to amenities (such as surgeries and local shops) will matter.
• Pet owners: 3 things to bear in mind are hard surface flooring, a garden and close proximity to green space.
• Multiple occupancy: such as student accommodation. They’ll have a range of needs and, be warned, these tenants require a lot of management time, patience and budget.

Financing your buy-to-let property 

Once you know how much you need to borrow, exploring your finance options is a big part of securing the right buy-to-let property:

Mortgage

Considering a mortgage is the first and most obvious route, whatever age group you fall into. The likelihood of void periods (and therefore landlords defaulting) means that lenders of buy-to-let mortgages usually seek extra security. So, you can expect a larger deposit and higher rate of interest. Fixed rate, variable and tracker versions are available just as with ‘ordinary’ personal mortgages. About Bovada Casino https://kellyrobbins.net/who-owns-wind-creek-casino-in-alabama/ Bovada Casino is one of the oldest and most trusted of all online casinos. There’s also equity release.

 Section 24

Introduced in April 2017, Section 24 means that by April 2020 landlords can no longer claim mortgage (or any other property finance) as a tax deductible expense. Two ways of avoiding this are:

1. Buy a commercial property in your own name (finance cost restrictions don’t apply). Even a shop with residential accommodation above will mean you pay less tax, though be warned, such properties are few and far between.

2. Turn your property into a Furnished Holiday Let or temporary accommodation for contractors such as construction workers. Then use a platform such as Airbnb. Another warning – it’s an awful lot of work!

Other people’s money (OPM)

From the family chipping in, to joint venturing with another investor, there are several OPM options. This includes finding a ‘finance angel’ (e.g. Funding Circle), or an individual who could act as a useful business partner in return for a share in your investment.

Crowd funding (peer-to-peer lending) is another option, but only for people with more than a single property – or at least plans to build a portfolio (the return on investment needs to be attractive enough for investors).

Other Costs associated with buy-to-let

Whether it’s a flat or a house, the size and location of your property is largely down to what you can afford, but also factor in the following:

• Unless the property is brand new, you’re likely to have alterations and repairs (maybe renovations) to afford. Anticipate fitting kitchen appliances, garden maintenance, decoration, new carpets, etc.
• Void periods are your biggest worry, so allow for no income when your property is empty.
• Estate agent fees, legal fees and stamp duty.
• Insurance.
• Letting agent fees, unless you want to do everything yourself. If so, you should take into account potential costs from things that will take you by surprise, and of course, use up your time.

Being a landlord remains a profitable and worthwhile form of income, so long as you find the right buy-to-let property. Playing at any of these will https://tpashop.com/can-i-play-real-money-poker-online-in-california/ give you a fair chance of winning. Then, we recommend you appoint an efficient and ethical letting agent to make sure your income exceeds your outgoings.

   

In our experience, bad tenants are in the minority – like dodgy landlords. Very few tenants actually set out to create problems for their landlords. However, like any relationship, circumstances change and the knock-on effect can be harmful. Building a positive tenant landlord relationship is one of the most commercial things you can do.

It makes sense, therefore, to anticipate potential problems with your tenants and minimise the disruption caused to you both. Remember, the abolition of Section 21 will mean that landlords can no longer evict tenants without very good reason. Even then, the repercussions and costs can be damaging if your case goes to court. You can still play online slots and clickmiamibeach.com other online casino games in your country.

You want your property to earn you an income, like any business, but, like any business, you need to be commercial and that calls for you to take charge of the relationship between you and your ‘customer’ – your tenant. Your aim must be to provide the optimum level of service to ensure your tenant keeps to their side of the bargain and is content to continue renting the property.

At The Right Place, we observe 8 golden rules:

1. Communicate

From returning calls to making an appointment to visit the property, clear and regular communication will help keep the tenant landlord relationship on a positive footing. Be clear about the reasons behind any decision or instruction. The classic example is access for inspections or maintenance. You have the legal right to enter the property having given appropriate notice, but often, understandably, tenants want to be present. That makes it more challenging to arrange access that suits you, your contractor and your tenant, so if it’s for something important or urgent (like a gas safety check), then perhaps you need to be insistent that the time suits your contractor, rather than the tenant. Whereas, if it’s non-urgent, then you can explain and offer the tenant several times and dates.

2. Look after the property

Anticipate problems before they happen, e.g. carry out winter maintenance. This saves you time and money and sets an example to your tenants on how to look after your property. It also earns you brownie points by showing that you take seriously their need to regard your property as ‘their home’. Leaving things until they break down will only antagonise your tenant and may cost you more money in the long run.

3. Stay within the law

Be the responsible landlord (to yourself and to your tenant). Winging it always fails, is likely to cost you more and could ruin your reputation, putting your valuable tenant landlord relationship at risk. The legislation for landlords is onerous – be in no doubt. From incorrectly claiming finance cost on your tax return to not protecting a security deposit, or overlooking the new electrical safety standards, there’s a lot at stake if you get it wrong. Crippling fines at least, custodial sentences or maybe loss of life at worst. Staying within the law is something to be proud of and should reassure and act as a warning to your tenants.

 4. Stay on top of admin

Legislation is the cause of a lot of admin. The Tenant Fees Act alone can tie you up in knots, which is why we carry out contract audits with new clients to identify potential problem areas. As a landlord, you need to be super organised with great record keeping to ensure you are not losing money or breaking the law. It also signals to tenants that you know what you are doing.

5. Charge a fair rent

The biggest breakdown in the tenant landlord relationship relates to rent hikes. Sometimes, you have no choice if your costs are spiralling through no fault of your own, but don’t use any excuse to raise the rent. The less money a tenant has each month once all their bills have been paid, the bigger the risk they’ll default or leave. A reasonable and steady income is commercially sensible.

6. When something goes wrong

…we recommend you’re prepared for it. Firstly, with our total loss protection Rental Guarantee, then by following a procedure and making your tenant aware of your plans. Whether it’s simple forgetfulness or a temporary cash flow problem, the reason a tenant defaults on their rent can vary. If you have peace of mind that you can cover any of your own outgoings and remain profitable, it means you can deal with the situation calmly. The problem might be solved by agreeing a simple payment plan or it might mean legal proceedings. Either way, having a plan for income continuity and following a prescribed and trusted process is the best way for both you and your tenant.

7. Create a manual that’s easy to understand

Do you read manuals? No, I don’t either! However, if there isn’t one accompanying my latest gadget, you can be sure I’ll kick off with “how do they expect me to know how it works?” It’s the same with tenants – don’t give them any excuse to complain and, more importantly, don’t give them any excuse not to look after or use something properly. Give every tenant a comprehensive easy-to-read guide to everything from kitchen appliances to changing the batteries in the smoke alarms.

8. Consider accepting pets

40% of adults own a pet, so accepting them as tenants is worth considering in order to increase demand for your property and attract long-term tenants. It means setting out clear guidelines on your expectations and exclusions. It also gives you a legitimate reason to ask for more rent!

Long live the peaceful tenant landlord relationship

The majority of tenants are happy with their landlord and rental property because both sides have a clear understanding of what is expected of them and take their responsibilities seriously. According to the English Housing Survey 2018, 84% of tenants in the private rented sector are either ‘satisfied’ or ‘very satisfied’ with their rental homes. The media, however, would have us believe that all landlords are rogues and all tenants are unhappily living in squalor.

It isn’t a cushy job being a (good) landlord. There’s a widely-held misconception that you just need to invest in a property, get it tenanted, and sit back while the rent pours in. Appoint The Right Place to manage your property for you and we’ll remove a huge amount of worry and admin, giving you freedom to do something else with your time, safe in the knowledge that your tenant landlord relationship is being nurtured.     

Tax is complicated and infuriating and often makes you wonder if earning a living is worth it, especially if you are a landlord in the private rental sector (PRS). Tax planning for landlords is therefore a hot topic and one that we take very, very seriously.

It’s tough all round for landlords right now, thanks mainly to the legislation and regulation being heaped on us by the Government’s ‘hostile environment’ for private landlords. For example, the gradual removal of finance cost relief is really beginning to bite. In the current tax year just 25% of our finance costs are tax deductible and from April 2020 none of it will be tax deductible.

However, instead of exiting the market, how about putting all your energy into being profitable, starting with your tax affairs? Tax avoidance is completely legal as is tax efficiency which makes commercial sense. Like everything related to letting property, tax efficiency is all about being strategic and organised.

You must know by now that the ‘one-size fits all’ tax solution doesn’t exist – and this in itself is cause for celebration. You and your circumstances are unique and that’s your starting point.

What follows is my approach to tax – tips and advice gathered over the years both as a letting agent and an ethical and profitable landlord. This is one of two blogs on tax planning for landlords and is essential reading, no matter what stage you’ve reached with your portfolio.

Where does a rental property fit into your financial plans?

Are you buying property as an investment (e.g. to rent out), or are you really in the business of buying and selling? This question is at the core of tax planning for landlords. “Invest in bricks and mortar, you can’t go wrong” – yes, generally this is true but you still need to do the numbers and give some thought to what you want to achieve beyond making money. Trust me – the outcome will be much better for you all round!

Spend some time analysing exactly where property fits into your financial plans. For example:

1. Do you need to fund something, such as school fees?
2. Do you want your property to provide an income or supplement current earnings?
3. Will this investment be a major part of your pension planning?

Don’t do something because you think it might be a canny tax move. Do something for a good commercial reason and then consider your tax options. Whatever you decide, HMRC needs to know – if you go for investment, but then start buying and selling repeatedly, they’ll be suspicious and assume you’re up to no good.

Keep your property business separate

Isolate your property rental business from any other form of income and earnings, including your pension. Essentially, you need to put it into a tax efficient ‘wrapper’ to avoid artificially increasing your taxable income. For example, purchasing property in a partnership or creating a limited company. That https://myhomes.tv/what-is-the-powerball-jackpot-right-now/ depends entirely on the laws of your country.

Do sweat the small stuff!

Tax planning for landlords is not just big picture stuff. If you’re unsure https://www.fontdload.com/directions-to-wind-creek-casino-montgomery/ whether you’d like to try real money slot machines or stick with playing free casino slot games, we’ve detailed the benefits of both in the table below:. It’s in the detail too. So, the more scrupulous you are about record keeping the less likely you’ll miss something that could effectively reduce your tax bill – or increase it. Finance cost relief might be disappearing but allowable expenses, through the day-to-day running of a property, can make a significant difference. Fees (letting agent, accountant, solicitor, etc) ground rent, council tax, maintenance, utility bills – it can all add up to tax relief.

We also encourage our clients to embrace technology and take advantage of the many apps created simply to reduce the bookkeeping burden.

Tax planning for landlords is a niche area

Whether your rental property represents a much-needed personal retirement fund or it’s part of your succession planning, you have a responsibility (if only to yourself) to make it as profitable as possible. In our experience, landlords are more knowledgeable about tax than they realise but, this is a niche tax area. The opportunities (and pitfalls) surrounding PRS require specialist knowledge. Getting the ownership structure right, for example, could make a huge difference to the amount of tax you pay over your lifetime (and beyond). The system is not slowed by this process https://tpashop.com/the-club-at-pechanga-pechanga-resort-casino/ since the detection processing on each image takes approximately the same amount of time as the acquisition of the next image, since the extra space is a double zero.

The next blog considers in more detail the different options for achieving tax efficiency. These are real life scenarios facing people in 2020 and the ways and means of making them work in your favour as a landlord.