child mortarboard gbp briefcase bath coffeecup tree twitter search crosshair fax house papers sort house-pound brochure list-items notes printer video-camera video virtual-video bath bed camera floorplan heart-empty heart-filled heart-empty-thin heart-filled-thin sofa calculator compass share clock list map-pen map-pin pencil save business-card letter phone heard people pointer cross linkedin google-plus facebook arrow-right close triangle-down my-wink my-wink-thick house-circle loading-spinner bell close-circle dog link pinterest school transport wardrobe arrow-up one two three four five six seven tick

Landlords: the top five ways of improving profits

With interest rates at historically low levels and changes to withdrawals from pension pots for over 55s, it's no surprise that many of our clients here at Winkworth are property investors and first-time landlords. One of the great aspects of buy-to-let is that it a tangible asset with both long and short-term growth prospects. Those that buy a property for sale in north London to rent out may benefit from healthy price appreciation through the years but there are also short-term strategies that can improve profit margins and lessen any associated tax bill. Here are Winkworth's five tips: Consider a HMO - a recent study found that a HMO - house in multiple occupation - outperformed a standard single occupancy buy-to-let at a stunning rate of 40%. The survey by investment company Platinum Property Partners found that the gross yield on a HMO was 12.4% and the net yield was 9.7% (compared to 5% and 3.5%, respectively, for a standard buy-to-let with a sole occupier. Many HMOs are now being developed with the upper end student market or young professional in mind, although investors should note that HMOs can be more expensive to buy and maintain. Use a professional managing agent - although the Government is changing what can and can't be offset against a landlord's income tax bill, letting agent fees are still included. The fee for managing a buy-to-let property - usually in the region of 10-15% - can be offset. For example, a professionally managed property to rent in north London with a monthly rent of £750 would lead to a £1,350 annual claim. Record your wear and tear maintenance work - although you can't offset renovations, extensions and improvements that add value to a buy-to-let, you can offset work that rectifies wear and tear, such as mending broken white goods, replacing worn carpets and general decorating. Think about offering the let with bills included - advertising your monthly rental charge with council tax and utility bills included does have a tax perk, as a landlord can claim back the whole cost. This applies to void periods too, when there are no tenants in the property. Claim for direct letting costs - keep a note of all phone calls and travel journeys made that are directly related to the buy-to-let. This can include conversations with tenants and agents, and travelling costs between let properties. Don't forget you can claim any related stationery expenses as well. Use an accountant - when it comes to your self assessment tax form, you can hire an accountant to fill the form in for you and offset the cost against the next financial year's tax return.

With interest rates at historically low levels and changes to withdrawals from pension pots for over 55s, it's no surprise that many of our clients here at Winkworth are property investors and first-time landlords.

One of the great aspects of buy-to-let is that it a tangible asset with both long and short-term growth prospects. Those that buy a property for sale in north London to rent out may benefit from healthy price appreciation through the years but there are also short-term strategies that can improve profit margins and lessen any associated tax bill.

Here are Winkworth's five tips:

Consider a HMO - a recent study found that a HMO - house in multiple occupation - outperformed a standard single occupancy buy-to-let at a stunning rate of 40%. The survey by investment company Platinum Property Partners found that the gross yield on a HMO was 12.4% and the net yield was 9.7% (compared to 5% and 3.5%, respectively, for a standard buy-to-let with a sole occupier. Many HMOs are now being developed with the upper end student market or young professional in mind, although investors should note that HMOs can be more expensive to buy and maintain.

Use a professional managing agent - although the Government is changing what can and can't be offset against a landlord's income tax bill, letting agent fees are still included. The fee for managing a buy-to-let property - usually in the region of 10-15% - can be offset. For example, a professionally managed property to rent in north London with a monthly rent of £750 would lead to a £1,350 annual claim.

Record your wear and tear maintenance work - although you can't offset renovations, extensions and improvements that add value to a buy-to-let, you can offset work that rectifies wear and tear, such as mending broken white goods, replacing worn carpets and general decorating.

Think about offering the let with bills included - advertising your monthly rental charge with council tax and utility bills included does have a tax perk, as a landlord can claim back the whole cost. This applies to void periods too, when there are no tenants in the property.

Claim for direct letting costs - keep a note of all phone calls and travel journeys made that are directly related to the buy-to-let. This can include conversations with tenants and agents, and travelling costs between let properties. Don't forget you can claim any related stationery expenses as well.

Use an accountant - when it comes to your self assessment tax form, you can hire an accountant to fill the form in for you and offset the cost against the next financial year's tax return.

If you are thinking about investing in property or are a landlord who would like to discuss your portfolio, please contact north London letting agent Winkworth today.

Related posts

Landlords: the top five ways of improving profits

With interest rates at historically low levels and changes to withdrawals from pension pots for over 55s, it's no surprise that many of our clients here at Winkworth are property investors and first-time landlords. One of the great aspects of buy-to-let is that it a tangible asset with both long and short-term growth prospects. Those that buy a property for sale in north London to...

Read post

July 30, 2015

North London property market - what might happen next?

The election is over and buyers of property for sale in north London might be wondering what to expect from the local market over the forthcoming months. There are a number of factors to consider and a couple of reports to digest to get a clearer picture, say north London estate agents. Here at Winkworth we noticed a lull in activity before of the general...

Read post

June 04, 2015

Property investment in north London: a broadening appeal

What do a former Brookside actress and 70% of younger landlords have in common' They are all banking on property as their sole pension fund. New research floating about the industry suggests that landlords at the younger end of the spectrum have fallen out of love with more traditional ways of saving for their future. Instead, they are pinning all their hopes on a buy-to-let...

Read post

May 05, 2015

Find your Local Office

Find your Local Office

Speak to people who, quite simply, love their patch and love what they do.

Get a Free Valuation

Get a Free Valuation

Thinking of selling or letting your property, or just interested to know what it is worth nowadays?