Factors to consider
Category : Tenancy
Here are some factors to consider for landlords. When calculating yields and returns, bear in mind to include costs like void periods, maintenance and ongoing running costs such as insurance, ground rents and any membership fees such as trade association and data protection licence. Council tax is usually payable by landlords during void periods (and during tenancies if renting on a room to room basis). Ensure you keep up to date with changes in mortgage interest relief and seek independent advice where appropriate.
The area that sometimes overlooked by many landlords is tax. There are several types of tax that you may be subject to and landlords are urged to seek independent advice. Speak to your accountant or a tax specialist if you need help in structuring your finances in a way that minimise your liability.
Inform your lender if you intend to let out your property. Ensure that you either have a buy-to-let mortgage or that you have consent to let from your lender. Not doing so you are committing mortgage fraud by deliberately staying on a residential mortgage while letting out your property.