To manage or not to manage, that is the question. Do you let and manage your rental property yourself – there are plenty of new online services that can help – or use an agent? And how on earth do you find a good one? There are lots of scary stories of agents who take your money but do a … Read More
Buy-to-let tax guide: Should you set up a company?
There is one loophole in the new Section 24 tax rule on buy-to-let mortgage interest: it only applies to individuals. Companies can still deduct interest from profits as before – for now. No wonder the number of buy-to-let mortgages issued to companies doubled after the change was announced. So, should you join the rush and move your existing rental property to … Read More
Buy-to-let tax guide: What can you deduct?
They say no one is ever as modest about their income as when they’re filling in their tax return. Jokes aside, when it comes to buy-to- let tax, the name of the game is to deduct every cost you legitimately can. If you’re a 40% higher-rate taxpayer, every £100 expense you claim could cut your tax bill by £40. So … Read More
What the interest rate rise means for buy-to-let landlords
Is Britain’s first interest rate rise in 10 years the last straw for landlords? We’ve had higher taxes, tougher mortgage rules and a slow market — and now our biggest cost is going up. What should we make of it all?
Rents to rise but property prices set for slow growth
Rents have been flat, but the pace is predicted to pick up. House prices, however, have adjusted to a new normal, with significantly slower growth than what we have been used to.
What to budget for in running a rental property
When it comes to running costs for your rental property, you can try and budget for every last key, stamp and phone call, but the only certainty is that you’ll be wrong. We try to be wrong in the right direction, with broad but pessimistic estimates of: Mortgage repayments. If you have a mortgage, this will almost always be your … Read More
How to get your rent valuation right
Let’s get one thing straight: the market, not the landlord, dictates the rent. Forget about asking £100 a month more just because your mortgage rate is up. Laid-back tenants who have stayed on for years without a rent rise might oblige, but the rest will take their business elsewhere. Beware, too, of letting agents who butter you up with inflated … Read More
Keep your buy-to-let exit strategy in mind
Your exit strategy forms a key part of your business plan for your rental property. What is your long-term plan with your buy-to-let? Do you want to hold it? Sell it? Return to it? Your answer will steer your decisions. If you’re planning to sell in the next few years, it makes sense to avoid any major upgrades unless they … Read More
Assess your rental property’s competition
Once you’ve analysed your product and your target audience, the next step in creating a business plan for your rental property is to check out the competition. How many properties similar to yours are up for rent nearby? Knowing how unique your property is for the area will help you establish how best to differentiate and market it. For example, in … Read More
Identify your rental property’s target audience
When you draw up your property business plan, think about your target audience. Which type of tenant is your property likely to attract? Who would want to live in this location, with these nearby facilities (for example, transport, schools or parks), in a property of this size, style and layout? It helps to profile your target audience so you can … Read More