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What new and existing landlords need to know
The buy-to-let sector is constantly evolving and growing, and many are turning to property as an investment. So how can you help make the most of your property investment? Whether you’re a new landlord embarking on your journey or you already have a property portfolio, we take a look at what you need to know.
It is important to crunch the sums and work out how much from your rental income will be profit. Peter Robinson, partner in the property department at Hunters Law, says: “Rents are obviously received gross of payments that the landlord will need to make out of the sums received, such as tax payable on the rental income and repair costs you will not be able to recover from your tenants.”
Robinson advises that outgoings related to the property will be regular, while income is not, so you need to build up reserves to fund material future repair and redecorating costs, as well as considering any void periods between lettings when there is no rental income.
Landlords will need to decide if they wish to manage the property or use an agent. An agent will be able to manage the majority of landlord responsibilities and save landlords time and stress.
Robinson explains: “A good agent will understand the market for your property and the optimum amount of rent you can expect to get. Tenancies and the law that regulates them are fraught with dates which trigger certain events and a good agent will have a property management system to keep on top of these.”