As a UK landlord, the cost of maintaining and running your property can quickly add up. The costs can quickly spin out of control from property taxes to insurance. With the cost of living increasing, landlords need to ensure they remain in control of their portfolio financially to ensure they can meet their financial obligations and those of their tenants. Fortunately, several money-saving tips are available to landlords to help reduce costs and ensure that their property investments remain profitable. These tips can give you ideas on saving money without compromising standards.
Avoid Letting Agents
One of the first money-saving tips for landlords is to avoid letting agents whenever possible. Letting agents are expensive, and their fees can quickly add up. Instead, you should focus on finding and managing your own tenants. This can be done through online classifieds, word of mouth, and other methods. Additionally, UK landlords should use a good quality tenancy agreement drawn up with a lawyer to protect their interests and ensure that the tenant is aware of their rights and obligations.
Check if you can claim back Stamp Duty
Another money-saving tip is to check if they can claim back stamp duty. This is a tax that is paid when a property is bought or sold, and it can be a significant expense. Fortunately, UK landlords may be able to claim back some or all of the stamp duty they have paid if they meet specific criteria. Criteria include your additional properties being uninhabitable or requiring excessive work to make them livable.
Furthermore, landlords may also save money by taking advantage of tax breaks. Landlords may be eligible for certain tax breaks, such as deductions for repairs and maintenance and deductions for energy-efficient improvements. By taking advantage of these tax breaks, landlords can save money on their taxes and ensure their property investments are profitable.
Get a Landlord Association Membership
Landlords can also save money by becoming a member of a landlord association. Landlord associations provide various benefits for members, including access to legal advice, insurance discounts, and resources and training. This can be advantageous if you must buy all licences under your local council’s licensing scheme. The costs for landlords can be upwards of £500 to over £1,000. Being part of a landlord association can save around 20% if your council offers this discount. Typically the cost for membership to an association will be under £100 per year, although this can vary.
Remortgage frequently
Finally, landlords can also save money by remortgaging their property frequently. Landlords can take advantage of lower interest rates by remortgaging their property and saving money on their mortgage payments. New deals can come on the market at any time, and it is recommended that those on fixed-rate mortgages, e.g. for two years, remortgage after this time to ensure they have the best deal.
Furthermore, landlords may also be able to take advantage of special deals when they remortgage, such as cashback or discounted fees. By remortgaging frequently, landlords can save money and ensure that their property investments remain profitable.
Conclusion
Overall, several money-saving tips are available to UK landlords to help reduce costs and ensure that their property investments remain profitable.
