Landlords Corner – Don’t Limit Your Options
It used to be that tightly managing your money was a way to bring you confidence and perhaps create a few small advantages that give you something extra in the long-term. Nowadays, being on top of every aspect of your finances is vital in turning any sort of profit, and giving yourself a degree of financial security.
This is the case for landlords, and at Trading Places, we work closely with landlords to ensure they are ready for the future. There are many steps available to take better control of your finances, and from what we’ve seen in the local area, and the findings of a recent study, indicate landlords are placing greater emphasis on managing all aspects of their finance.
Limited company options appeal to many landlords
The latest Landlord Leaders survey by the OSB Group indicates 65% of landlords are thinking about setting up, or have already set up, as a limited company. There are tax benefits associated with this standing, and given the financial challenges landlords face today, and in the future, it is understandable that letting industry professionals want extra support.
For professional landlords, the figure is even higher, reaching 72%. For non-professional landlords, only 46% indicated they intend to do this, which is still a high figure. With so much uncertainty surrounding the property and rental market in 2024, with the General Election adding to the doubt, you can see why landlords want to have a degree of control in their business.
If you believe you can only control what you do, setting up as a limited company is a great way for landlords to improve their tax standing, and to minimise some of the risk they expose themselves to in this difficult industry.
Some of the benefits of making this step as a landlord include:
· You aren’t affected by Section 24; you can offset 100% of the mortgage interest
· You can enjoy a better rate of taxation if you would have been classed as a higher rate taxpayer as an individual
· You have more flexibility for saving and tax planning
· You can reduce taxes when expanding your property portfolio
Are you ready for anything?
A large part of being a good landlord is about looking forward, and being ready for anything. The same study suggests 66% of landlords are investing, or looking to invest, before legislative changes come into play.
Jon Hall the Managing Director of OSB’s Mortgages and Savings department said: “The actions landlords are taking, such as future financial planning, investing in the growth of their businesses, and building better tenant relationships, are a clear sign of their drive to improve the PRS for the long-term despite the many headwinds.”
We are always here to help
Many landlords struggle with paperwork, and staying on top of legislation, but we are here to assist you, ensuring your tenants receive everything they need in your rental property. if you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.
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