Being a landlord certainly has many advantages. Not only do you own property that provides a decent income every month, but it’s also a long term investment. Providing the property market doesn’t hit any major obstacles you should make a decent profit when the time comes to sell up.
It isn’t, however, all plain sailing, so if you want to make a go of it or intend taking on multiple properties, there are some things you should be aware of. Here are 3 things that every good landlord should know.
Remedy any maintenance issues
We’ve all heard about the cash-hungry landlords that take money from their tenants each month but never get anything fixed. The bottom line is that it makes no logical sense to leave issues unattended. Not only will it annoy or upset your tenant, but it is also likely to damage your reputation and may substantially reduce the value of your investment.
If, for example, your roofline is showing signs of damage – don’t leave it to get worse. Act now and you could save yourself lots of money and stress. Specialist companies such as Roofline Design can help with all roofline issues, including sagging guttering, rotten fascia boards, or issues with soffits. One phone call is all it takes, and the issues can be remedied in no time. Deal with maintenance issues as and when they happen and save yourself time, money, and stress further down the line.
Choose your property investments wisely
If you are going to be a successful landlord, you need to buy the right properties in the first place. Research local areas and find out where the next property hot spots are likely to be. Is there a train station being built nearby? Has planning been granted for a new school or college? Are there several bars and restaurants opening in a specific area of town?
If you can figure out where to buy before everyone else does, you should be able to find property at very competitive prices. This should result in an investment that is not only easy to rent out but one which should yield a good return in years to come.
Keep on top of the figures
It’s all very well renting out a property, earning a decent income, and paving the way to a good retirement, but a good landlord must know their figures. As well as keeping track of income and outgoings, you must also keep abreast of HMRC regulations in terms of what can be offset against income and what cannot. This has changed substantially over the last few years, and there are now far stricter guidelines than ever before, so make sure you know the details.
If you are in any doubt, it’s worth hiring an accountant to do it for you. They can advise you of any tax breaks, as well as ensuring that you are adhering to current government guidelines.