Many UK people invest in rental properties, which brings an attractive revenue, even after all the costs are deducted, yet making money is most certainly not a given. There are many things that can go wrong; you might not be able to find suitable tenants, or you might be unlucky and have to endure a nightmare tenancy. Property upkeep and maintenance can eat into your profits; once you are a landowner, you are liable for many things, which can cost a lot of money.
Property Management Company
Ask any seasoned rental property owner about property maintenance and they will recommend you join forces with a reputable property management company. They provide all the services that you need, including the following:
- Essential building maintenance.
- Tenant screening.
- Contract creation.
- Handling the rent on your behalf.
- 24/7 security.
- End of tenancy clean.
- Dealing with tenant issues.
The property management company has all the resources that you need and they take the strain and make sure that all is well when you are abroad.
Funding
If you have crunched the numbers on an old property and by renovating, you can command top rentals, you should not approach a regular mortgage broker, rather deal with one that focuses on commercial property loans. If you are UK based, Ascot Bridging Finance offers short term bridging loans for rental property owners, which will tide you over until the commercial loan is approved. You might have to use some of the equity in your home, although many commercial lenders are happy with 100% loans and no deposit, as the arrangement is not for a home to be used by you as a residence.
Sourcing Tenants
This is a big obstacle for a rental property owner; some advertise their property, but most leave this to their property management partner, who can screen and select the right type of people to rent your property. They can take the strain of being a landlord from your shoulders, leaving you to enjoy the benefits, with the rent wired into your account every month. It can take up all your time screening potential tenants and you are advised to let the property management company handle this. Click here for information about the best type of flooring for your rental home.
Taxation
As you already know, it is impossible to escape paying tax on your profits and in order to stay on the right side of the government, you will need the services of an experienced property lawyer, who can ensure that you only pay the minimum amount of tax on your rental property business. The last thing you want is to leave your tax returns to the last minute, rather contact a taxation specialist as soon as the project commences.
If you acquire the right property in the right location and join forces with an established UK property management company, you should have a profitable rental property business that will generate a good long-term income, while your property appreciates in value.
