1. Maximising future returns

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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