Blog published by the British Landlord Association – November 2021
The rental market has seen a lot of change over the last few years, including increased compliance and regulation, meaning many landlords find it difficult to remain compliant and to stay on top of their business.
1. Landlord costs are up to 15%-20%
2. Fines up to £30,000
3. Voids and rent arrears
4. Digital records will become a legal requirement
Watch the short video: Why cloud-computing for landlords? on Vimeo
In addition, the impact of Covid-19 has increased rent arrears. Landlords dread the thought of legal disputes, but you must have good notes and documentation if any do arise.
We estimate that 95% of landlords still use spreadsheets to manage their business and become overwhelmed by all the changes. To keep up, landlords have had to create DIY systems, including spreadsheets, a database, an accountancy software package, a task management system, and file storage. Using multiple systems provides problems such as:
– Siloed apps that are unable to talk to each other
– Customisation required for landlord use
– Limited mobile access
– Ease in making mistakes such as updating the wrong file (or not updating the file at all)
– No one else knows how to use it!
All these separate systems can add up to around £50 per month.
To scale your property business, it needs to be a system that anyone can use, on any device, from anywhere. A simple to use App can make things easier by saving you valuable time, money, and stress along the way.
Now is the perfect time for landlords to take advantage of the new technology available to them.
Alphaletz was created in 2019 by Richard Jackson after trying to find a solution to help him manage his rental property portfolio. Unfortunately, he was unable to find a single solution that did what he needed.
The mission of Alphaletz is ultimately to help landlords save time.
By using Alphaletz, landlords can see their whole business at-a-glance, removing the need for complex spreadsheets. Within a couple of minutes, you can add a property, tenant, and lease information. Additionally, landlords can now keep on track of their finances and compliance reminders.
In a single dashboard view, Alphaletz provides all the key information:
– Cashflow view at-a-glance, with the ability to filter by property and/or owner
– Occupancy & rent arrears
– Upcoming tasks and compliance reminders
It has been designed with simplicity in mind so that anyone can get started!
Alphaletz offers:
- Bank integration
- Tax simplification to help address the future Making Tax Digital (MTD) government requirements.
- Real-time records help landlords stay on top of legal & compliance requirements
- Storing and managing of data so that landlords can maintain digital records
Why should we think about Making Tax Digital (MTD) now?
The Government recognises the challenges many UK businesses face as the country emerges from the pandemic over the last year. In recognition of this MTD will be introduced in 2026, rather than 2024.
Under MTD, businesses are required to keep digital records and use third-party software to submit their tax returns to HM Revenue and Customs (HMRC). Under the changes, those mandated to use MTD will need to keep records of their income and expenditure digitally.
They need to send a quarterly summary of income and expenses and an end of year report using MTD compatible software (or applications).
Through MTD, businesses and landlords will be required by law to keep digital records. This will involve a transitional cost for businesses not already doing this. They will need to acquire the software and become accustomed to using it.
Further information: Extension of Making Tax Digital for Income Tax Self-Assessment to Businesses and Landlords – GOV.UK (www.gov.uk)
Today’s Technology
We rely on apps more and more to help make our life easier. So if you’re thinking about updating the way you manage your business, it’s worth looking at a property management app like Alphaletz.
Watch the short video: Why cloud-computing for landlords? on Vimeo
Alphaletz is a time-saving app to help landlords simplify finances, paperwork, and administration for their rental property business. Capterra has received great user reviews for Alphaletz, with an average rating of 4.8 out of 5.
Try Alphaletz for free for your first unit or property.
Read the full British Landlords Association blog
