As you might know, being a Landlord is not an easy job at all. Firstly, you are required to adhere to several legal responsibilities when it comes to your property. In addition, you also need to guarantee the safety of the building by scheduling regular maintenance, of course. The ultimate wellbeing of your tenants and their loved ones rest on the shoulders of the Landlord too, and last but not least, them carrying out their financial responsibilities as stipulated in the Lease Agreement.

In the likely event that you may secure a tenant, you as a landlord must pay the required tax on the profit you make from renting out the property after taking into account any qualifying deductions for 'allowable expenses.'

Let us have a look, shall we? Allowable expenses would be any amount you would have spent exclusively to rent out your property to tenants.

It would be expenses such as (but not limited to):

● The repair costs and maintenance in or around your property during the term of the Lease.

● The costs of supplementary services, which include landscaping and gardening services, ground rent to remain in good standing with the landowner, and cleaning services or live-in house staff.

● Electricity bills, gas refills, water rates, and council tax.

● Insurance premiums for your property and home contents.

On the property that you own, the first £1 000 of your income from renting out your property is tax-free, this, of course, being your 'property allowance.' It is noteworthy, however, to highlight the fact that when your rental income is between £1 000 and £2 500 a year, it is advised that you contact the HMRC and notify them accordingly.

In addition, if your rental income falls between the bracket of: 

● £2 500 and £9 999 per annum, after allowable expenses naturally;

or if your rental income equates to:

● £10 000 or more per year before allowable expenses

You have an obligation to report it on a Self Assessment tax return.

Do you know about the deadlines?

You must submit your tax return to the HMRC before specific deadlines; otherwise, you are at risk of paying penalty fees if you are late!

It does not end here, ladies and gentlemen. We have not even touched on how your taxes should be calculated, where or how to register, what you should keep on file, et cetera!

In our predominantly digital world today, there are fewer files and papers and delays and coffee-mug stains on invoices. We are more efficient in a way, yes. Having said that, there are still requirements to submit said information, albeit digital. It is a nightmare to remember on which Smartphone or tablet, or laptop all these documents are stored due to our evergrowing need for improved technology.

Therefore, it is highly recommended to join forces with a reputable accounting service provider for landlords and avoid finding yourself on the proverbial wrong side of the law!

By hiring an experienced and qualified tax advisor, you will not only sleep more soundly at night, but they will also undoubtedly help ease the burden by doing the heavy lifting and taking care of all your tax obligations by meticulously 'documenting' all the expenses relevant to the property. They will be the proverbial handyman on your financial and tax side of things. They will maintain your finances as well as your reputation with dedication and class.

A sure way to seize the next opportunity is to have a professional take care of the area they specialize in, which frees up time to invest in the next property. A little bit of TLC and the next set of Tenants can occupy with the Landlord ready to welcome them at the front door. 

If you are thinking of investing in property for rental income, any property type will be a good investment opportunity. Just bear in mind that renting out one property is tricky, but renting out numerous properties is a different ball game.

A Landlord can easily manage the required tasks that go hand-in-hand with seasonal property maintenance and the odd burst pipe or two. Upkeep of the building and a coat of paint every five to seven years is manageable for sure.

Looking at the Investor with more than one property in his portfolio will surely necessitate a small team of skilled individuals to arrange said maintenance activities: a handyman, plumber, electrician, cleaner, or all-around property manager, to name but a few. Imagine the stress of running all of this and trying to keep track of all the snags, all the orders, all the invoices, and all the payments. Balancing your ledger is surely becoming a full-time job.

Financial year-end creeps up on most of us, and it just makes it so much easier to have a professional on your side. An extra pair of eyes and ears to assess and sign off on the legalities surely does come in handy.

It is already challenging to find good tenants, especially ones that appreciate the proper attention of a knowledgeable Landlord. The key to finding and keeping great tenants is to have a process in place to respond to their pressing needs when their daily life has been temporarily interrupted by the odd water leak. This will ensure that they respect the Landlord and the property they are renting and would surely think twice before relocating to a new house. A perfect scenario where one can count on future income and is already familiar with the occupants. Imagine the benefit of having a professional-looking after your finances as well as you are looking after your property.