Property Investment Archives

Converting a Residential Mortgage to Buy-to-Let: What You Need to Know

20th July 2024

If you currently have a regular residential mortgage on your home, are moving out and want to let the existing one out, then you may be wondering if changing to a buy to let mortgage is possible. The answer is there are two main options. One is to obtain consent from your current lender to let your property out, or re-mortgage to a buy-to-let loan.

How to Reduce Your Buy To Let Property Tax Bill

20th June 2024

Being a landlord in the UK offers significant opportunities for profit. Learn actionable strategies to reduce your rental property tax bill and maximize your earnings effectively and legally.

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.

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.

Loophole Means Section 21 Ban Delay “is Not What it Seems” – Claim

16th May 2024

Goodlord’s Oli Sherlock argues the government’s delay on the Section 21 eviction ban is misleading. Despite assurances, some landlords may still serve Section 21 notices. Learn about the potential loopholes.

Buy-to-Let in Croydon: Potential Rate Cuts later in 2024 and Why Croydon Remains a Strong Investment

9th May 2024

The Bank of England’s recent decision to hold interest rates at 5.25% has injected some uncertainty into the UK housing market. While the pause offers a temporary reprieve from rising borrowing costs, the impact of previous rate hikes is likely to be felt in the coming months, potentially leading to slower house price growth. However, Governor Andrew Bailey’s comments suggest a possible shift towards lower rates in the near future, which could reignite buyer demand and stabilize prices.

Despite this uncertainty, Croydon remains a compelling location for buy-to-let investors seeking a steady return on their investment. Its affordability, ongoing regeneration, excellent transport links, and vibrant atmosphere make it an attractive proposition for tenants, particularly in a market where affordability is a key concern.

Guaranteed Rent vs. Traditional Lettings: A Croydon Landlord’s Guide

2nd May 2024

Unsure if guaranteed rent or traditional lettings are right for your Croydon property? You’re not alone. Many Croydon landlords grapple with this decision. Balancing income security with maximizing returns can feel like a tightrope walk. This guide will shed light on the key differences between guaranteed rent schemes and traditional lettings, helping you choose the path that leads to stress-free property management and a healthy return on your investment.

Average house prices Halifax Nationwide and ONS tracker 2013 to 2024 chart

UK House Prices Witness a Decline in March: Insights from the Latest Halifax Report

5th April 2024

Explore the latest insights on the UK housing market downturn in March, with detailed analysis from the Halifax report, implications for homeowners and buyers, and future outlook. Uncover the key factors driving house prices and regional variations in this comprehensive guide.

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.

Insights - Property Investment