Insights - Letting

Self-managed landlord

The Top Pros and Cons of Being a Self-Managed Landlord

14th June 2024

Buy-to-let property investment can be a lucrative way to create a regular income, whether it’s to top up an existing salary or pension, or to act as a main source of revenue. But if you are considering becoming a buy-to-let landlord, the question is, should you go self-managed, or hand over to a property management service to handle everything for you? To make that decision, it’s important to know the pros and cons involved in being a self-managed landlord.

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water damage in flat

Understanding the Basics of Charging for Tenant Damage

12th June 2024

Understanding the difference between wear and tear and actual damage is key to determining fair charges. By following the guidelines outlined in this article, you can confidently navigate the process of handling tenant damage and maintain a successful rental property business.

An In-Depth Explanation of Guaranteed Rent Schemes for Buy To Let Landlords

31st May 2024

Discover how portfolio landlords can leverage guaranteed rent schemes to achieve hassle-free property management, secure rental income, and actively contribute to addressing the housing crisis by partnering with local councils.

Can you make money being a landlord? It’s a good question, especially as rules, regulations and tax breaks continue to change, in many cases not for the better. But with some expert insight and the right strategy, the good news is that buy-to-let investment can still be a lucrative way to create a profitable income stream. Let’s take a look at five ways to help you optimise your profits as a landlord. With demand for rental property high, and supply generally low in many areas of the UK, there is plenty to attract the buy to let investor. But the question of how to make money as a landlord will of course always arise. Here are some strategies you may wish to consider to help you get the most out of your landlord business. Consider setting up as a company Changes to mortgage interest tax relief have proved to be one of the biggest threats to landlords’ investment profitability, with higher-rate taxpayers facing more of the rough end of the stick than anyone else. For this reason, many landlords have been considering setting up as a company. This allows you to offset all your mortgage interest when calculating your tax bill, instead paying Corporation Tax on your profits. A company structure can often work well for landlords with larger portfolios. However, for those with just one or two properties, the benefits may not necessarily outweigh the costs, especially bearing in mind that a move to a company structure will require you to sell your properties to your company, which will incur a Stamp Duty liability. If you’re unsure as to the right structure for your buy to let business, be certain to take professional advice. Source and retain the best tenants A good tenant who pays their rent on time and treats your property with respect is worth their weight in gold. You’ll therefore want to invest in finding the best tenants and, when you do, hold on to them. Void periods can be very costly to landlords, but there are plenty of ways to avoid them and be a good landlord, keeping the tenant happy by ensuring you react to any maintenance requests in a timely fashion being one of them. Also, when the time comes to renew the tenancy, make sure you get your rental rate right and can justify any rent increases, as if the tenant considers it unfair, they may well look elsewhere, leaving you with an empty property on your hands. Re-mortgage to a better rate It can sometimes be beneficial for landlords with a buy to let mortgage to switch deals, particularly if interest rates have dropped since the original loan was taken out. It is generally possible to secure a new mortgage six months before the end of a current fixed term, so it’s a good idea to start looking at your options in advance. You may also wish to consider a green mortgage which could provide you with a means to upgrading the energy efficiency of your property in order to improve EPC ratings. Reduce your management costs Property management costs can be one of the greatest expenses for landlords, whether you paying for a managing agent to handle the day to day running of your property, or you are covering the maintenance costs yourself. Managing agent fees can set you back between 12 and 20 per cent of your rental income. There is plenty of choice, which means you could save money by shopping around. When comparing agents, make a list of the services you genuinely need so that you do not pay unnecessarily for things you don’t need. You should always weigh up the pros and cons of being a self-managed landlord versus using a letting agent, and think about any added value that a property management service could offer you that will make it worthwhile, such as offering guaranteed rent. Avoid unpaid rent When thinking about how to make money as a landlord, you’ll need to prioritise avoiding unpaid rent, because it can be a costly issue to face. Even just a single missed payment can have a significant knock-on effect. There are various tactics you can use to deal with tenant rent arrears, or you could look at options that will help you avoid them altogether in the first place, such as a guaranteed rent scheme. How to make money as a landlord, with help from homes2let Here at homes2let, we offer a fully comprehensive property management service, with that all-important added value. Unlike a traditional property management service, the homes2let guaranteed rent scheme returns greater profits, whilst reducing your buy to let investment risk by ensuring your rent is paid on time every month, even during void periods. With no fees to pay or costs to cover, and with everything taken care of, you won’t ever have to worry about the likes of tenant sourcing and referencing, preparing your property for rent, meeting regulatory and legal compliance requirements, arranging property inspections or taking care of day to day maintenance issues. Why not talk to homes2let to find out more? Our helpful team has particular expertise in the South London buy to let investment market, and is ready to share a wealth of knowledge to help you make money from being a landlord. We welcome you to get in touch today.

5 Great Ways to Maximise Profits as a Buy-to-Let Landlord

18th May 2024

Can you make money being a landlord? It’s a good question, especially as rules, regulations and tax breaks continue to change, in many cases not for the better. But with some expert insight and the right strategy, the good news is that buy-to-let investment can still be a lucrative way to create a profitable income stream. Let’s take a look at five ways to help you optimise your profits as a landlord.

Landlord smoke alarm requirements

New Rules for Landlords on Smoke and Carbon Monoxide Alarms

20th April 2024

Private and social landlords are set to face tougher new rules, making it a legal requirement to fit smoke alarms in all types of rented accommodation, regardless of tenure. The conditions under which they must be fitted will also be widened. Read on for an update on the latest landlord smoke alarm requirements for the UK.

Tenant unpaid utility bills

Unpaid Utility Bills: Who Pays, Landlord or Tenant?

15th April 2024

A common concern amongst landlords is what happens if a tenant moves out leaving unpaid utility bills. Whether it falls to the landlord to settle the debts, or it remains the responsibility of the tenant, is precisely what we are setting out to provide clarity on in this post.

costs of being a landlord

Exposed: The Lesser Known Costs of Being a Landlord

3rd April 2024

Landlords new to the buy to let environment are wise to take a step back and think about the true costs involved in letting a property, some of which may not naturally spring to mind when working out ultimate yield. Here we uncover some of the hidden costs of being a landlord, a worthwhile read if you are considering getting into the property market.

Who is responsible for pest control in a rental property

Who is Responsible for Pest Control in a Rental Property?

23rd March 2024

Bed bugs, cockroaches, mice or rats, it’s never pleasant when a rental property is suffering a pest infestation. But the question of who is responsible for pest control in a rental property remains a grey area. It can be challenging to work out how an infestation came about, which is generally how to determine who is responsible for dealing with it. Here we look at the typical pest-related scenarios that can arise, and how to deal with them.

How to market your rental property

How to Market Your Rental Property: A Landlord’s Guide

21st March 2024

Getting your marketing right is vital if you’re going to make your buy to let property stand out in the crowd. Successful adverting ramps up interest, attracting the right tenants and giving you more choice over the best renters. Here we share our top tips on how to market your rental property to help you find the best tenants faster, and boost your rental yield in the process.

tree trimming landlord or tenant

Everything a Landlord Needs to Know About Trees

10th March 2024

Trees are beneficial to the environment, and can be an attractive feature in any garden. But when they grow to towering heights and start blocking light or the roots start causing issues, problems can ensue. For landlords and tenants, the lines of responsibility when it comes to trees can often become blurred. Here we look at landlord’s responsibilities for trees, as well as general rules and regulations for property owners.