3 Property Professionals To Have On Your Side In Buy-to-Let
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3 Property Professionals To Have On Your Side In Buy-to-Let


It is definitely true to say that, over the past five years, the BTL game has changed.

Increasingly onerous taxation and legislation and regulation have driven a “professionalisation” of the sector.

Here, at MakeUrMove, we regard this as a positive development.  We have always believed that landlords should treat their BTL investments as a business in order to ensure long term sustainability and profitability.

As a landlord taking your business seriously, we recommend the following property professionals to advise you, bearing in mind that some of this advice is not only regulated, but also insured, giving you peace of mind.

It is also definitely worth mentioning that professional services are also tax deductible!

Here are the top three people you need on “speed dial” on your mobile:

1.  Mortgage broker

Unless you are a cash buyer, finance is the lifeblood of a property business and understanding which products you as an individual have access to is very important as it will help bring enormous clarity to the direction you can take and what you can achieve with your particular starting point and circumstances.

The mortgage market is highly competitive and there are many lenders that you will not find on the High Street who only specialise in BTL mortgages.  They often have far more competitive products and rates than your local High Street bank.

For this reason, working with a professional and reputable mortgage broker who has access to “whole of market” is very advantageous to you, ensuring that you access the best rates and deals, maximising the cash flow from you BTL investment.

Calling a reputable mortgage broker should be your first port of call when in “acquisition/buying mode”.  They can pre-qualify you for BTL finance, meaning that you can put in offers on properties, as you are deemed to be pro-credible because you have finance in place.

Furthermore, a good mortgage broker will help you “stack” deals and, if you aim to develop a long term relationship, they will help you grow your portfolio, by understanding your financial situation and goals.

Most brokers charge a fee to raise a mortgage for you and this is money well spent in our book, not to mention that you can claim this expense against tax.

2.  Tax Advisor

The tax landscape for landlords has changed dramatically since the introduction of Section 24 in 2015.

Section 24 means that landlords will be restricted as to how much mortgage interest relief they can offset against tax.

Tax year

Percentage of finance costs deductible from rental income

Percentage of basic rate tax reduction

2017 to 2018

75%

25%

2018 to 2019

50%

50%

2019 to 2020

25%

75%

2020 to 2021

0%

100%


Source: gov.uk


If you are already a higher rate taxpayer, then it is likely that you may need to consider other tax structures than buying property in your personal name.


This is also the same if you are on the cusp of being a higher rate taxpayer, as your rental income in the light of Section 24, may actually push you over the threshold!

This is why it is vital to seek tax advice from a qualified tax advisor, preferably one who has a specialism in property and landlord tax.

This advisor will help you structure your property holdings in the most efficient manner, ensuring you build your BTL business on solid and sustainable foundations.

There will be a cost associated with obtaining this advice, but, as mentioned above, it is tax deductible and you will save far more in tax than what it costs you to pay for professional tax structuring advice.

3.  Lettings agent

A reputable and accredited lettings agent like Make Ur Move is the final piece in the landlord support puzzle.

There are over 180 Government statutes and regulations that landlords need to adhere to in order to provide a safe and compliant home for their tenants.

If you are not fully across these, then opting to use the services of a professional lettings agent will greatly mitigate your risk of non-compliance - where the financial penalties are very severe.

Furthermore, you are providing accommodation for a tenant and, if you do not meet your legal obligations, you could become liable if - for example in an extreme situation - a tenant died in your property because of a faulty boiler creating CO poisoning.

In a recent interview with the Property Tribes forum, David Cox, CEO of the Association of Residential Lettings Agents, of which MakeUrMove are members, discussed how working with a professional agent can greatly mitigate a landlords’ risk:



 



We manage properties all over the country, are fully compliant, and we operate to the highest standards to ensure that your tenants have a safe and enjoyable experience living in your rental home.


This not only ensures that your tenants stay longer, but our support is also proven to reduce voids and minimise rental arrears, something that every landlord should be aiming to do at all times to optimise their income.

Get in touch with us today to discuss your property management requirements.


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