You need to declare income from lettings in a self-assessment tax return, and pay tax on amounts above the threshold. As with any business, certain costs (such as maintenance costs and our letting agent fees) are deductible, but the details vary depending on whether you are letting residential, commercial or holiday property.
If you’re planning to take your first steps in property management, ask us for practical advice on declaring income, tax exemptions and deductible costs.
You are required to hold buildings and contents insurance for the Bradford rental properties you own – but standard policies (the sort you might have for your own home) may not be sufficient. Talk to us and we can help you find a deal that fits your portfolio and budget.
Rental guarantee insurance can be a vital tool in lowering landlord risk and protecting your income. The insurance guarantees you a rental income from properties where tenants default. Ask us about making income protection a part of your ongoing package with us.
Managing your finances is an essential element of property investment success. Talk to us about the mortgage services that can help you buy your next buy to let for less, or remortgages that can help finance renovations and improvements. Find out more here.
Whilst it may not always be possible to avoid a tenant getting into arrears, it’s far easier, quicker and much less stressful to try and help them avoid an arrears situation if you can. To do that, take the following steps:
Contact tenants on the first day of a missed payment – it’s very easy for problems to spiral, so staying on top of your payments shows your tenant that you are treating their rent as a priority, so they should too.
Make it easy to pay – try to offer a range of payment options, so that if a direct debit fails, you have the backup of accepting, for example, a card payment.
Create an obligation – it’s much easier to let rents slip if a tenant’s relationship with their landlord is poor or non-existent. Go the extra mile in what you offer your tenant (or ensure your Bradford letting agent does), and they are more likely to feel a responsibility to you.
If you’re struggling with arrears on your rental properties, talk to us for advice.