Experience counts

Many landlords have been in the business for a number of years, reaping the rewards of letting anything from one property to an entire portfolio.

And once you have had at least one property for around five years or more, you are classed as an experienced landlord.

When you get to this point, you may feel as though you know all there is to know about lettings and that you do not require any assistance; however the legislative requirements and market challenges are constantly evolving, creating brand new challenges.

The longer you are active in the market, the more potential for change exists and you run the risk of being left behind or falling foul of the law if you fail to adapt. So seeking professional help in this area to ensure you adhere to every regulation is a wise move.

Experienced landlords typically come with a range of priorities in mind, so there is plenty to consider if you are to realise your goals in the long run.

We also have years’ of experience, find out more about us here.

Build a portfolio

Securing your first rental property can sometimes be the most difficult, so once you have achieved this building a portfolio should be more straightforward.

One of the key reasons for this is that, once you have the first property, it will benefit from capital growth over time. So at some point, you may be are able to cash in on this property or borrow against it to expand your portfolio.

Alternatively, you could use the rental income from one property to build a fund that will help to pay for additional properties.

However, it is important to remember that whether you are expanding or reducing the size of your property portfolio, one of the most important considerations should be Capital Gains Tax (CGT) – either now or in the future.

CGT applies in any case when an asset is sold for a profit, so in the case of landlords it typically applies when a property is disposed of for a higher amount than you paid.

The good news is that there are some ways of offsetting the CGT tax liability so Open House work with a number of tax planning companies and can make recommendations to you as spending a few hundred pounds on expert advice in this area can save you thousands in the long run.

If you feel you require more assistance with any of the issues you are likely to face as an experienced landlord, do not hesitate to get in touch with Open House to find out how the company can work with you to great effect.

Voids

As your property portfolio grows, the likelihood of one of your homes being empty at any particular time will rise. However, you will also become better prepared to deal with this, as one property out of several being unoccupied means you will still enjoy an income stream from the others.

The financial responsibility of maintaining a large portfolio in comparison with a single property is very different, so it is important that you work out how many properties you can afford to have empty at one time.

You will still have to meet a monthly mortgage payment as well as maintenance fees if the property is leasehold, so bearing these sums in mind as your portfolio expands is a must.

A short vacancy period should be embraced and taken as a positive opportunity to re-evaluate your rental price and carry out any work that might be required without disrupting a tenant.

If you feel you require more assistance with any of the issues you are likely to face as an experienced landlord, do not hesitate to get in touch with Leaders to find out how the company can work with you to great effect.

Growing empire

If you own just a single property, you might opt to self-manage, but this becomes more difficult once your empire starts to expand. Two properties can mean twice as much work, and this trend continues as you add the third, fourth and fifth property to your portfolio.

It will understandably become extremely time consuming to manage your assets, so at this point it makes more sense than ever to enlist the services of a high-quality letting agency, which will be able to let out and maintain your properties effectively and offer a range of advantages.

Leaders promises to take the hassle out of letting, enabling you to enjoy the rewards without having to put in the hard graft. We will also maximise the return you achieve on your properties, through efficient management of your entire portfolio to maximise rents, reduce voids and rent arrears as well as freeing up your time to invest in finding new properties for your portfolio.

Landlords are subject to a plethora of legal responsibilities and requirements, and Leaders has all the expertise and experience required to make sure you meet all of these at all times.

If you feel you require more assistance with any of the issues you are likely to face as an experienced landlord, do not hesitate to get in touch with Open House to find out how the company can work with you to great effect.

Tax & Legal

Is your insurance policy adequate?

Not all typical buildings and contents insurance policies will cover a tenanted property, so it is vital that you check the level of cover afforded. You will need to invest in a specific landlord insurance policy to ensure you are protected against all eventualities and to cover public liability which is required as a landlord. Open House can provide you with the perfect insurance package tailored to meet your needs and with a specially negotiated premium in place.

Be aware of administrative duties and changes in legislation

You will understandably experience a turnover of tenants over time. With this comes a growing responsibility to update inventories and schedules of condition with each tenancy, ensure you are using watertight and legislatively up to date tenancy agreements, issue relevant notices regarding rental increases, payment arrears and repossession, as well as keep deposits in a government-backed Tenancy Deposit Protection Scheme.

With the constantly changing legislation, keeping on top of this can be very difficult and time-consuming, which is where a good letting agency offers real value for money.

Taxation on lettings income

Any profit you make on a rental property is subject to income tax, so it is important to consider this alongside other income streams. All of the money generated from letting out a property must be declared in a self-assessment tax return.

You should learn about what costs and expenses you will be able to offset against rental income in order to reduce tax payments.

Remember your legal responsibilities

As an experienced landlord, you will already be aware that your properties must meet certain safety standards. As the years pass, it is important not to take your eye off the ball by failing to keep your gas and electrical certificates up to date, as well as maintaining fire safety certificates on all soft furnishings. You are responsible not only for the property, but also the safety of the tenants and their guests.

If you feel you require more assistance with any of the issues you are likely to face as an experienced landlord, do not hesitate to get in touch with Open House to find out how the company can work with you to great effect.

Repairs

Be prepared to carry out repairs and improvements.

We always aim to identify the perfect tenant for your property at the first time of asking, with that individual or family remaining in your property for many years.

In such cases, you should not neglect the needs of a property while it is occupied. The law dictates that you or your agent cannot enter a tenanted property at any time, but you can set up regular inspections that give you peace of mind and provide tenants with a chance to spell out any repair demands.

Updating the decoration while a tenant is in situ, providing it is done at times that suit them, can help you both maintain the current tenant and avoid tenancy voids once they leave.

The more up to date with current expectations and decorative order you keep your property, the easier it is to avoid periods of excessive work and updating in between tenancies.

If you feel you require more assistance with any of the issues you are likely to face as an experienced landlord, do not hesitate to get in touch with Open House to find out how the company can work with you to great effect.