Buy-to-let
Overpay on your mortgage – Buy to let mortgage lending is expected to recover from early 2010, but lending criteria will be tighter than ever. Lenders of mortgages and other loans will look at your credit rating over a period as long as six years. You can start improving your credit rating today by paying off credit card debts and overpaying on your mortgage payments. If you are currently paying less on your mortgages as a result of lower interest rates, use the difference to pay off as much as you can afford.
Choose carefully – When trying to find a tenant, consider how secure your new tenant’s employment and income are likely to be. It used to be so much easier, but would you take on an investment banker or estate agent today? What matters now is whether they have transferable skills and a flexible, can-do attitude. But before you sign the tenancy agreement, do run a tenant reference check – just in case. After all, without it you can only take their word for it…
Protect your rental income – Unemployment among new tenants in the private rented sector has risen to 7.8 per cent, up from just 3.1 per cent twelve months ago. Would you cope with bouncing direct debits if your tenants cannot pay the rent on time? Smartlandlord.co.uk Rent Guarantee insurance cover ensures that you don’t have to fall behind on your mortgage and other payments when tenants default. And if you do have to take action to evict, Smartlandlord.co.uk also provides cover for costs and proceedings to evict the tenant.
Tax advice – Landlords face over 70 pieces of legislation that affect their property portfolio, including complex, regularly changing tax rules. You may be paying too much tax right now. Income you receive from rental property is subject to tax in the UK if you are a UK resident, but you are entitled to deduct reasonable costs. Smartlandlord.co.uk Tax Advice gives you access to answers to your specific tax queries from a qualified tax professional, as and when you need it.
Do it yourself – Letting agents charge you up to 11 per cent of the annual rent if you simply want to renew a tenancy agreement for a further 12 months, even if you manage your property yourself. Luckily, there are alternatives. Smartlandlord.co.uk Find a Tenant lets you advertise your property on over 100 major UK property portals in a single, easy transaction for a one-off fee with no renewal fees or other hidden extra costs.
Pay only for what you use – Letting agents that manage your property for you will also typically charge you a hefty commission on top of call-out charges whenever you need maintenance, a plumber etc – even for just a quote. On top of that you pay property management fees. With Smartlandlord.co.uk® Pay As You Go Property Maintenance you only pay for repair and maintenance services you really need.
Stay informed – Changes in legislation mean that you could suddenly find yourself liable for hefty fines. Did you know you could be fined thousands of pounds repeatedly if you don’t have a valid Energy Performance Certificate (EPC) when you change tenants? Or that you cannot put property on the market unless you already have a Home Information Pack (HIP) sorted out? Or that the law on gas inspections has been changed? Smartlandlord.co.uk® gives you the latest updates on legislation, tax, finance and other issues that affect your buy to let property – free of charge.
