Times are tough and we’ve all had to tighten our belts a little financially. As Landlords, you’ve already felt the legislative changes that have slowly been introduced over the recent years.
It’s now more important than ever to make sure your property investment is secured in the safest way possible. But where do you start?
Hopefully, this blog can shed some light on some of the basic things you can do to make sure you stay afloat during these trying times. Here’s some advice on How to Protect Yourself Against the Rising Costs of Being a Landlord.
Landlords aren’t immune to inflation, and with the rising cost of living amongst the energy crisis, some Landlords are taking the liberty to marginally increase rental costs to compensate for lost profits.
There is a right and a wrong way to do this, and we highly recommend doing the relevant research to ensure that your rental cost isn’t exceeding average market for the type of property you’re letting out.
Read our full blog on how to properly increase rent to find out more about the right way to do this so you don’t make any mistakes!
Compare Quotes on Maintenance
Before you pull the trigger on a quote you’ve been given on maintenance work, we recommend you shop around and compare other quotes from local companies to make sure the price you’ve been given is fair and affordable.
This is probably one of the simplest ways to save a little extra cash every time you need something done.
Alternatively, you could use a single service provider that you know is fairly priced.
We recommend MyConstructor , a maintenance provider for Landlords who cover everything from EPCs and Gas Safety Certificates all the way through to carpet cleaning & end of tenancy services.
Inspect Your Property Regularly
We can’t stress this enough.
Inspecting your property thoroughly & regularly means you can manage molehills before they become mountains, preventing potential maintenance nightmares.
For example, a simple property inspection can identify gaps in grout around a bathtub before they become giant leaks that can damage a ceiling.
This means a quick fix has turned into several thousands of pounds of repair work due to not inspecting your property correctly!
We’ve written a full, extensive blog on property inspections and we even provide a free Property Inspection Checklist that you can use to make sure your investment is kept in good order.
Save on Tax
You’ll need to pay tax if your overall earnings surpass £12,500 per year, regardless of whether this comes from a salary or solely your property income.
Some outgoings can be measured as an expense in order to save on your tax. Here’s a few expenses you can claim against to save a little extra:
- Management & agent fees.
- Furniture replacement & repair costs.
- Property refurbishment costs.
- Property Management Software like Alphaletz.
- Costings on travelling to and from the property.
- Relevant service charges (if the property is a flat or apartment.)
Of course, you’ll need to stay on top of tax returns for your measured income. Failure to do so can result in harsh penalties and even harsher consequences.
We recommend you speak to someone who can assist you with tax planning so you don’t fall into any tax traps when trying to save. We highly recommend Property118 who are tax planning specialists!
With the economic climate dipping into a cost of living crisis, it’s best to make sure your investment is secured against mishaps that aren’t within your control.
There’s many things that can go wrong, and more often than not, a fair few Landlords find themselves understanding the importance of insurance when it’s far too late.
That’s why we recommend looking at insurance plans that cover against tenants that are falling into rent arrears or accidental damage against your property.
Alan Boswell Insurance provide great insurance plans across the board. We also have a range of insurance products and services listed in our marketplace that are cost efficient and fantastic value.
When it comes to saving money, choosing a fairer insurance policy that works for you can help you keep hundreds of pounds in your pocket per year.
Why not weigh up some options we have stored in our Marketplace?