Getting the most out of rental properties
Getting the most out of rental properties doesn’t necessarily mean spending all your time and effort on them. There’s always a wiser option and, if you’re on the hunt for houses for sale in Hertfordshire or elsewhere that you want to rent out, consider letting someone else do the managing.
With sweeping changes to property taxation about to come in that will negatively affect many people making money from residential houses and flats, landlords across the country are seeking ways to stay profitable. It’s made all the more challenging with the current market uncertainty created by the ongoing Brexit drama, as well as rental prices that are not altogether rising, as expected.
For its part, the governments or the previous government, having announced the new tax measures in the Summer Budget of 2015 wants to level the taxation playing field in terms of landlords. The new structure, outlined in the policy paper Restricting Finance Cost Relief for Individual Landlords, comes into effect on April 6. It affects people whose income includes rental payments on residential properties in Britain and elsewhere, who have financial costs such as mortgage interest as a result. Excluded from the new tax system are fully furnished holiday lettings.
In essence, what this means is that over a period of four years from now to 2021 landlords will be hit by deductions from their property income that will be restricted to 75%, 50%, 25% and then 0%, respectively. It’s designed to make sure that landlords with far higher incomes will no longer be able to benefit from generous tax benefits, according to the government. So with potentially lower profits and rents that aren’t performing as expected, are landlords scrambling to stay on top of their game?
The Savior of a Landlord
It may seem surprising, but many landlords still say that the property picture across the UK, even with the new tax structure about to come in and market turbulence, looks healthy. If one recent survey is anything to go by, it turns out that the majority of people earning incomes from rental properties are optimistic about the future. Of landlords surveyed, 83% said they would continue with their property portfolios, as they believed in the market. Plus, they mused, if some didn’t stick it out and gave up the property business altogether, that would be good news for those remaining, as fewer rentals available would generally mean higher rents.
Savvy landlords are just like any other kind of businessperson; they want to do as little as possible for the maximum gain. It means that as they add increasing numbers of properties to their growing empires, it makes little sense to spend even more time finding people to occupy them and look after the buildings.
Indeed, those two vital tasks are essential in getting the most financial returns from a property as possible, if done right. Locating quality tenants and then sorting through the contractual matters is not only time-consuming, but downright difficult. As is renewing contracts, when the time comes, and hopefully negotiating rent increases. It’s all best left to the professionals: experienced estate and letting agents who will take care of everything.
Turning Houses for Sale in Hertfordshire into Profit
If you’re on the hunt for houses for sale in London or around the country, with the aim of turning them into rental properties, that’s only half the work. Using the services of an estate or letting agent can really give you the boost you need to start the revenues flowing, as well as freeing up your time to better focus on more investment opportunities.
After all, what landlord really wants to be running around fixing things, trying to get payments from late-paying tenants, or attempting to get rid-of non-payers, when experienced pros can do it for them? Instead of all those very real headaches that come with doing it all yourself, a Landlord for instance, will ensure all the properties in a portfolio run like clockwork.
Now, along with getting reliable tenants and proper rents paid on time, landlords can set their sights on growing their property empire even further