Being a landlord can be a stressful, time consuming and complex job, especially if you are new to the market. It involves being responsible for the general maintenance of the property, ensuring rent is paid on time, you must fix any damage that may occurs and advertise for new tenants – the list goes on.
With private landlords owning one out of five homes in Britain, and could be gaining as much as £26.7 billion a year from the taxpayer, there has never been a better time to get into the market.
There are lots of legalities and financial obligations involved which you need to abide by, but it is not all hard work and heartache. HAP Lettings want to outline for you the long list of benefits that comes with letting your property.
Undoubtedly the main reason of letting out your property and becoming a landlord is the monthly rent installments you receive. This refers to the rent money that is left over after the mortgage and related expenses have been covered. Every single month, providing that your tenant pays on time, you will receive a good amount of money that will cover the mortgage for the property plus a little extra for your pocket.
If you own the property outright and have no current mortgage in place or expenses to cover, that rent money will become straight profit for you and a nice extra monthly income. A well-managed property with reliable tenants will mean a steady stream of income.
As well as receiving a monthly income, the more you hold onto this property the more it will increase in value and becomes a great investment and security for the future. Not only that, if you living situation was to change, you own this property outright and can move in at any point, once your current tenant as finished their fixed term agreement.
Being a landlord and letting your property is a great opportunity to become your own boss and is like managing your own business. It can be very rewarding being able to make decisions on contracts, costs and agreements terms with your tenants. You are also in the position of selling your property if you so wish if the value was to rapidly increase over time – you are fully in control, the boss. Not only that, you will find that once you get the hang of being your own boss and landlord, you will grow your real estate portfolio and become a big player in the game.
Short Term Tax Advantages
As you may already know, you can deduct mortgage interest and real estate taxes on rental properties. Long term wise, if you the value of your property increases, you will not be expected to pay the taxes on that increase, until you decide to sell.
Dependent on what type of area your property is in, the value will increase over time, giving you the peace of mind that you will see a return on your investment in the future. Owning property is a great well to build wealth, the longer you hold onto your property, the more it will ‘appreciate’ in value. Not only that, investing and letting property is not as volatile as other investments you could look into – land and property are very unlikely to disappear.
Letting your property through a letting agency is definitely a great option for you if you don’t have the time to be a ‘full time’ landlord. Letting agents, such as HAP Lettings, will take care of everything on your behalf – we will find suitable tenants and carry out all necessary tenant checks, we will arrange for any damages to be fixed, we remain constantly up to date with legal requirements and so majorly reduce the risk of you slipping up. Try our guide to letting your property for more information.
We will take care of all viewings, maintenance work and manage your property effectively, as well as take care of deposits and any reductions if required at the end of tenancy agreement. Letting your property through HAP Lettings is very advantageous to those of you who do not have the time on their hands to fully commit to being a landlord – we are.