January is a time for goal setting and planning change for the year ahead. What should landlords be looking at for the coming months? Property Reporter suggests:
Landlords will face new tax legislation from April this year. This will affect:
- Purchases of buy to let properties as stamp duty will rise by 3% for these properties in April this year
- Profit - some tax-deductible expenses such as mortgage interest payments and the general 10% ‘wear and tear’ allowance can no longer be claimed against profit.
Now is the time to make sure that you are fully aware of the extra costs that will be incurred later this year.
A raft of new rules affect landlords – do you know about them?
Last October saw the introduction of the smoke and carbon monoxide legislation.
We are about to see – from 1st February - the introduction of Right to Rent landlord requirements.
“We make sure that all of our landlords are fully aware of their legal requirements,” explains Jason Dyer of JTM Homes. “Part of our service is keeping everyone informed and checking that all of our rental properties meet landlord and tenant requirements.”
3. Refresh for Better Rental Rates
Have a critical look at the condition of your rental property. Better rents are achieved when properties are in good condition and well presented, inside and out. The higher rent levels that can result are usually greater than the investment needed to refresh your property.
4. Proper Paperwork
Yes, it can be boring… but properly files and updated paperwork helps you to save time when queries arise – and possibly money too. If you have lived at your rental property, keep a record of the dates involved. This may help reduce your tax liability.
Whilst there are several legal and financial changes to consider, property is still an attractive investment. “Currently, there is a rush to buy properties before the new stamp duty rules are introduced in April. There are still great bargains to be snapped up, however landlords must be prepared to move quickly,” says Jason.
If you would like to know more about buy to let opportunities in north London, read our Landlord’s Guide, or contact us at our Highgate or Archway offices.