Do you have a property to let?
Check out our hints and tips for landlords below:
Payments to the landlords
The tenant pays by standing order on the 1st of each month, which takes four working days to hit our account. We then start to make all payments to landlords on the 14th assuming that the tenants payment has hit our account. From time to time payments can and do arrive late, and we endeavour to pay those as quickly as possible. When a payment has not hit our account by the 5th of the month, we then attempt to contact the tenant to confirm why payment has not been received and chase. We will always endeavour to inform you should payment not be received by email, or if you state otherwise in writing.
You’re mortgage payment date
We recommend that you ask your mortgage company to move your payment date back to the 20th of each month. If a tenant is late in paying, then it helps you to ensure payment by the payment date.
Furnished or unfurnished
You are entitled to a 10% deduction for the wear and tear of your furniture. This 10% is taken off the rental income – so on a rent of £1,000 per month, £100 can be offset against that amount for wear and tear (effectively you pay tax then on just the £900 less your mortgage and less any other costs you can offset). It is generally easier to rent out a property that has some furnishings, rather than none at all.
You can offset certain things such as mortgage payments, management fees, insurance costs and repairs (but not structural changes that improve the property).
Repayment or interest only
We always advise interest only, as later on, the chances are that you will remortgage the property to purchase more later on, and the increase in equity is tax free cash that you can use (although this does of course increase the size of the mortgage).
Listen to our advice
We have lots of experience in the lettings market, and listening to our advice, especially if you’re a new landlord is well worth it. You get years of experience just by listening in, and it helps our relationship grown over the next few years.