Buying a property to let can be a good investment as long as you carry out lots of research beforehand. It is wise to secure rental assessments from an experienced letting agent before you make any offers.
If you are thinking of buying a property to let, Parker Stag will offer a free appraisal of the price you are paying and also the property’s rental value.
Your property and portfolio will be one of your biggest assets. It's likely that your mortgage lender will have insisted you have buildings insurance, but you should also consider insuring the contents of your property such as appliances, carpets and protecting the fixtures and fittings against malicious tenant damage.
It is also wise to consider protecting your investment from tenants defaulting on rental payments, as such we are able to offer a Rent Guarantee product on fully managed properties.
There are lots of costs you can deduct from your rental income that will help to reduce your tax bill. These include things like your mortgage; inventory fees; safety inspections and certificates; letting agent's fees and insurance costs.
To keep track of these, Parker Stag use a property management software so we record every cost you incur. In addition to this, we offer an introduction to TaxAssist Accountants who will provide taxation advice to our clients.
Lettings legalities are becoming a minefield, with new laws coming in over the last few years and more in the pipeline. It is essential your letting agent is up to date with the latest legal requirements.
For example, you will need an Energy Performance Certificate to be able to market your property and tenant deposits need to be protected in a Tenancy Deposit Protection Scheme. You will also need to advise your mortgage lender that you are renting the property out and make sure all your safety certificates are up to date. Parker Stag will arrange and manage all these issues.
There have been lots of legal changes over the last few years that affect the landlord and tenant relationship, including the Tenancy Deposit Protection Scheme. It's important to update the Tenancy Agreement when required. Parker Stag will ensure you Tenancy Agreement is up to date.
This is a legal document which lays out your business relationship with Parker Stag. It explains what you need to do and what they will do for you and at what cost.
Ideally, the agreement should lay out all the letting agent's costs clearly on one page. If it doesn't, it's a good idea to ask for this in writing and check the agreement with an experienced lettings legal professional before you sign.
Whether you already have a portfolio, are about to purchase your first buy to let, or even let out a home you have lived in, it is essential to ensure you seek tax advice. There are many ways of legitimately reducing your tax bill, in some cases by tens of thousands of pounds.
Make sure you record all the costs associated with the buy to let so you can file your tax returns easily and benefit from lower tax bills. Again, we offer an introduction to TaxAssist Accountants who will provide taxation advice to our clients.
With the introduction of the Deposit Protection Service (DPS), it is essential to have a good quality inventory as this document is increasingly used in deciding who wins DPS disputes.
Photographs are great as they show exactly the condition of a property prior to the tenant moving in. Parker Stag carry out an inventory on your behalf when fully managed.