Advice for Accidental Landlords

Landlord-advice

A significant portion of rental properties in the UK are owned by what the industry refers to as 'accidental landlords'. Contrary to popular belief, rental properties aren't solely the domain of wealthy multi buy-to-let investors.

So, if you find yourself in the position of an amateur landlord, here are 5 crucial things you need to know:

  1. Stay Compliant with Regulations: In the heavily regulated world of property rental, staying compliant is paramount. Electrical regulation for rental properties requires an EICR certificate every 5 years, alongside Gas certificates and Tightened EPC regulation. Join a landlord body or let through a qualified letting agent to ensure you're on the right side of the law.
  2. Understanding Tax Implications: As a landlord, your property income must be reported on a Self Assessment Tax Return. You may also be liable for Capital Gains Tax upon selling the property. Seek independent advice on structuring ownership and taxable income for optimal outcomes, especially considering recent changes in tax relief on mortgage interest.
  3. Navigating Stamp Duty: Be aware of the 3% additional stamp duty charge if letting your home to buy another. However, this charge can be reclaimed if you sell the original property within 3 years, making it a viable option for short-term plans. Use our stamp duty calculator.
  4. Consider Property Management: Hiring a property manager can alleviate the burden of managing the property yourself. Professional management ensures compliance with regulations and timely maintenance, reducing the risk of rental voids and premature tenant turnover.
  5. Maximise Property Profitability: Review the tax situation, explore refinancing options, and invest in property improvements to attract quality tenants and enhance long-term value. Tax-deductible improvements can elevate your property into a higher bracket, attracting desirable tenants and boosting rental income.

At Avocado Property we've learned from our own experiences and are dedicated to ensuring a positive renting experience for both landlords and tenants. For expert guidance tailored to your needs, visit our lettings page today.

Or contact us here, we are happy to help!

Mike 

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