Maximising future returns

Maximising future returns Worryingly only 48% of landlords consider their property lets ‘a business’ Providing a home in return for rent is a business exchange Landlords should consider their lettings as a business to turn profits Good businesses should make profits Professionally-run businesses make more profit

The business plan Where do you want your business to be in five years’ time? Create a business plan Consider the next 1, 3, 5 years Consider each property separately Consider market movements Consider expansion/reduction plans

Expect the unexpected Be prepared for those worst case scenarios Rent arrears Expensive repairs Voids Build a buffer into your budget Budget to receive 10 months’ rent in every 12 month period Protect yourself Purchase insurance policies to protect your income

Insurance NLA Rent Protect NLA Property Insurance Protects you if your tenant fails to pay the rent Covers you for up to £2500 per month in unpaid rental income and it covers legal costs to help you in the recovery of unpaid rent £10 discount for NLA Full Members NLA Property Insurance As a landlord it is vital that you take out residential landlord property insurance as normal home insurance policies do not cover essentials such as public liability and alternative accommodation 15% discount for NLA Full Members

Voids Even the most loyal tenants may want to move on at some point Avoid the surprise factor Discuss future plans Offer resolutions to problems/faults Remember the rule: budget to receive 10 months’ rent in every 12 month period This will protect you from unexpected costs

Rent arrears Can happen to any tenant, even those who have been thoroughly referenced Anyone can lose their job or experience a relationship breakdown Maintain an open dialogue Encourage tenants to discuss rent problems and create short term solutions Remember the rule: budget to receive 10 months’ rent in every 12 month period This will allow you to continue to make mortgage payments if your tenant fails to pay

Keep on top of your rent payments NLA Rent Manager NLA Rent Manager is an online landlord software solution that allows you to better manage every aspect of your rents Designed by landlords, for landlords, NLA Rent Manager will make the task of rent management much easier, saving you both time and money in managing your rents, no matter the size of your portfolio Keep on top of missed payments with NLA Rent Manager, FREE to all NLA Full Members

Budget management Adapt your budget according to changes and unexpected costs review your annual budget every month to check you’re on course Build in rent increases These should be a true reflection of realistic market levels/trends to be considered at each renewal Build in planned expenses Scheduled maintenance Gas Safety checks Redecoration requirements Licensing costs

Tax planning All rental income must be declared – even if you’re making a loss Schedule tax returns Make sure you are aware of the tax deadlines and schedule some time aside to get this right Talk to an accountant if you’re unsure

Seek tax advice NLA Recognised Suppliers can help with any questions or doubts Expert tax advice from OneE Group or Stern NLA Tax Investigation Insurance HMRC routinely check a proportion of tax returns They may also decide to conduct an extensive examination All these enquiries take time and money to sort out NLA Tax Investigation Insurance is free for NLA full members

The value of membership Being a member of the NLA can make it easier for you to run your business and be a successful landlord Some of the advantages to being a member include: The NLA Telephone Advice Line – help with practical issues, Monday to Friday NLA Branded Services – discounts on essential services such as mortgages, insurance, repossession and tenant checks Recognised Suppliers – we do the work for you by finding reputable and trustworthy suppliers from solicitors to tax advice to boiler repair Taxation Investigation Insurance – free cover, should you need it, included in your membership Events – meet your local NLA rep and other landlords in your area or take a course such as accreditation or Portable Appliance Testing For more information or to join today, visit www.landlords.org.uk/membership