If you’re a landlord, chances are you’re feeling a bit hard done by at the moment. It seems like every other day, new rules and revisions are being announced around landlord and tenant law, which means you have to change the way you work and may face higher taxes.
But is it all doom and gloom?
Is it time to hang up your landlord hat and sell up?
We definitely don’t think so.
Demand for rentals
The pandemic turned the property world upside down. Suddenly, the urban rental market went flat, whilst rural and suburban rental markets saw a surge in demand. People couldn’t move around so vacant properties stayed empty.
However, as the world tries to get back to normal, many people have returned to their offices, and students are looking for accommodation. So, it’s a good time to get back in the game. Demand for rental properties will always go up and down, but currently, it looks like rental prices are staying high.
Many people think being a landlord is the key to getting rich quick – but that’s never been the case. There are lots of costs involved with being a landlord, but ultimately, if you manage your investment properly, it will pay off. If you’re a part-time landlord, you can expect a regular sum to supplement your monthly income. If you’re a full-time landlord with multiple properties, you’ll see a rise in income as demand increases.
Buying (and spending) sensibly
As a landlord, the first rule to remember is that it’s not your home. Take your time finding a buy-to-let and decide whether you want a ready-to-go rental or a renovation project to which you can add value. A good agent can tell you how much rent to expect and the necessary changes that need to be made to maximise earning potential.
If you watch your pennies and don’t pay out too much for décor and furnishings, you can still earn a respectable income once you’ve taken taxes and other expenses into account.
Saving for the future
Despite changes to tax laws and what you can claim in expenses, one thing remains the same: your rental property is an investment into your future. Many people look at rental properties as part of their retirement income, either by the monthly rental yields or by selling the property on in later years.
Being a landlord isn’t an easy route to riches; it takes a lot of hard work. However, if you maintain the property and work with a reliable agent, it’s still worth investing in the buy-to-let market.
If you’re looking to invest in a buy-to-let, contact our team at Edward Ashdale for help.