1. www.landlords.org.uk National Landlords Association www.landlords.org.uk

2. Professional Practice For Profit  The campaign aims to: - Highlight the importance of operating in a business like manner, regardless of your portfolio size - Help you maximise your profit margins  March 2014 – July 2014  Today we will be looking at ideas for maximising future returns

3. www.landlords.org.uk 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, well run businesses should make profits - Professionally-run businesses make more profit

4. www.landlords.org.uk 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

5. www.landlords.org.uk 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

6. www.landlords.org.uk Insurance  NLA Rent Protect - 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

7. www.landlords.org.uk 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

8. www.landlords.org.uk Rent arrears  Can happen to any tenant, even those who have been thoroughly referenced - anyone can lose their job or experience 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

9. www.landlords.org.uk 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 - Don’t let rent arrears, keep on top of missed payments with NLA Rent Manager, FREE to all NLA Full Members

10. www.landlords.org.uk 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  Build in planned expenses - Scheduled maintenance - Gas Safety checks - redecoration requirements - licensing costs

11. www.landlords.org.uk Tax planning  All rental income must be declared – even if you’re making a loss  Schedule tax returns  Talk to an accountant if you’re unsure

12. www.landlords.org.uk Seek tax advice  Stern and Company - NLA Recognised Supplier - Expert tax advice and record - fixed monthly fee.  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

13. www.landlords.org.uk Calculating yields  There are a number of yield calculations, each useful in different ways  Gross yield  Net yield  Yield on actual investment

14. www.landlords.org.uk Calculating yields http://www.landlords.org.uk/yieldcalculators

15. www.landlords.org.uk Tips and ideas  How would you manage your business plan?  What would you advise?

16. www.landlords.org.uk And finally…  For more information - On points covered in this presentation - Business advice - Help with professional development Visit www.landlords.org.uk/professionalpractice  The NLA Telephone Advice Line can help with specific questions on practical issues - 0207 840 8939 (9am – 5pm, Monday – Friday)  To join or upgrade your membership - Speak to your NLA Local Representative - Contact the NLA Membership Team on 0207 840 8937 - Visit www.landlords.org.uk/membership