While there is no set approach to how a landlord should manage a property portfolio, if you want to optimise your growth here are five top tips from Horizon on how you can boost your rental income.
Maximise what you have got
If you are looking for opportunities to develop your current income earning potential through refurbishment of your current portfolio, simple alterations like redecorating or adding an en-suite will increase earning potential.
Buy-to-let mortgages continue to be the most popular funding process for landlords. Perhaps to fund a refurbishment on your property you may want to release some equity from your portfolio.
This route is only available to landlords with existing property increased equity and is limited by the requirement to meet the loan and affordability standards of the lender.
Cashflow is key
Landlords who are planning to expand will need to build up a reserve to help fund their next purchase. Make sure that the rental costs cover all your responsibilities as a landlord, like mortgage, financials, maintenance and insurance.
Research shows that buy-to-let landlords are in it for the long term. The best properties are those that offer steady capital gains and a good rental yield. One way to achieve these two objectives is to look at property in an ‘up and coming’ area.
Properties located near transport links, an expanding hospital or university attract new residents to the area offering Landlords the highest potential for sustained long-term return.
Could a limited company be for you?
In 2015 landlord tax changes came into play and since then there has been an increased number of landlords purchasing property through a limited company. The most recent research suggests that over 50% of landlords plan to purchase their next property this way.
Incorporation allows landlords to expense their finance costs against rent before the deduction of tax. We always suggest seeking advice from a tax specialist as there are some costs and conditions involved.
If you wish to discuss how you could maximise your property portfolio then please give Horizon Lets a call today on 0330 577 2118.
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