Undoubtedly the main reason for becoming a landlord is the extra income you will receive. You will receive a sum of rent money every month from your tenant. If you have a buy-to-let mortgage, this rental income can help to repay it. Eventually you will own the property outright and the returns on your property investment will be even greater. Despite fluctuations in house prices, buying property to let is generally considered a safe investment as it provides landlords with a reliable source of income and your property value will increase over time.
MANAGING YOUR INVESTMENT
Being a property landlord can be very rewarding. You are essentially running your own business and managing your own assets. You will need to make decisions on costs, investments, contracts and terms. You can also decide when to sell the asset and cash in on your investment.
TAX DEDUCTION BENEFITS
Buy-to-let mortgages generally have higher rates than other mortgages and your rental income is taxable. There used to be a tax relief available on mortgage interest, but that is currently unavailable. However, there are a number of tax deductible expenses including for depreciation due to wear and tear which is generally up to 10% of the gross rental income. Other deductible expenses include:
- Buildings and contents insurance on the property
- General building and maintenance repairs
- Replacing damaged fittings and furniture
- Cleaning and garden maintenance fees
- Accounting and admin processes
- Redecorating or repainting fees
THE BENEFITS OF USING A LETTING AGENT IN PRESTON
Guildhall Sales & Lettings in Preston have specialised team who can offer help and advice with all aspects of being a property landlord in Preston. Our landlord packages take the stress out of renting your property to tenants and create a professional balance by distancing yourself from your tenants. We also help you deal with rental arrears, property maintenance, rental contracts & deposit disputes.
If you would like to find out more information on our landlord packages, please visit our property management page or give us a call on 01772 76 99 99