Talk to your accountant

Make sure that you get all the tax relief you can on your property investment portfolio. Many landlords do not realise that you can get tax relief on many different costs incurred by running a let property. This will often include the fees you pay to your letting agent or anything to do with the day to day running costs like fixing a broken tap or replacing a damaged roof. Beware that you will not be able to refurbish your bathroom or simply changing a kitchen and as this would be classed differently. If you have any concerns, then speak to your accountant who will be more than happy to assist you.

More tax issues

From April next year the government is warning all landlords that they will not look kindly on landlords who are claiming tax relief for capital payments on their mortgages for buy to let properties. You are only able to claim the interest element of your mortgage payments. If your buy to let mortgage is interest only then this is simple. However, if your mortgage is repayment based you will need to ask your lender for confirmation of the amount of interest you have been charged. It may come as a surprise to many that the tax man will have the power to visit your home to inspect records and payments. If you are in any way uncertain about how your monthly payments then do not hesitate to contact your buy to let mortgage broker or your lender directly.

Consider running the property yourself

With most letting agents charging in the region of twelve percent for running and managing your property it may be worth considering the advantages of managing your properties yourself. Mortgages for buy to let properties may well get cheaper in the near future but you have to ask yourself now, exactly what it would cost you to run the property yourself. Rate the cost of your time against the savings you can make in not paying a letting agent. For some people this may not be an option because of time constraints but if you think you are able to manage your property, be proactive. Some tenants really appreciate the extra care an individual running a property can give as opposed to a letting agent who manages many properties. With the right preparation and organisation it is not difficult to carry out the appropriate checks on your property. You will be required by law to make sure that your boiler is checked by a corgi registered engineer. The checks are essential as a landlord can face serious penalties if these checks are not carried out and you will put your tenant in danger.