National Landlord Investment Show: What I learnt
I recently attended the 49th national landlord investment show in the Royal Victoria Docks, London. The day was very informative and I had the chance to meet and speak with industry leading experts in their field as well as attend seminars hosted by credited speakers.
The first seminar I attended on the day was conducted by John King from Tenancy Deposit Scheme (TDS) which offers landlords and agents a deposit protection service. John talked about the importance of how deposits should be handled during a tenancy to avoid being in breach of the lawn. Most notably, he mentioned that all landlords are required to place tenancy deposits in a deposit protection scheme but also landlords have up to 30 days upon receiving a deposit to act accordingly. In addition, when it comes to the return of deposits, John King emphasised the importance of having a condition report at the commencement and end of an tenancy. This would provide a quick resolution between both landlord, agent and tenant in the event of deposit disputes.
The second seminar I attended was regarding how to run a tax-efficient professional property business hosted by Tony Gimple from Less Tax For Landlords. Tony highlighted a number of things with the introduction of new tax laws which would have a great impact on landlords investments. For instance, the rise in stamp duty tax by 3% would increase tax on properties worth £300,000 from £5,000 to £14,000. In addition, the changes to mortgage tax-relief means that landlords can only offset 75% of their mortgage interest against their profits. Although, many landlords may not be aware of these changes that would have a big impact on the profitability of their portfolios. A recent survey by mydeposits stated that 26% of respondents said they were unaware of changes affecting mortgage interest tax relief and 23% did not know about the additional 3% on stamp duty tax, buy to let and second home purchases.
Lastly, I attended a seminar hosted by Marie Parris from George Ellis Property Services where she spoke about the importance of managing a rental property professionally. One of the things she mentioned was following strict application procedures and conducting adequate reference checks before the commencement of a tenancy. In addition, landlords must be able to operate within the law when handling various situations with their tenants. For example, being able to handle rent arrears in the most appropriate manner. Although, every landlord may has their own procedure for dealing with rent arrears, Marie stated that the best way to avoid the situation in the first place is by contacting all the references provided in the application. However, if a tenant appears to be good on paper but becomes a nightmare it would be best to contact the tenant and provide a quick solution for late rental payments.
To conclude, as the rental market continues to be buoyant - more landlords may seek to increase their portfolios and make the most out of a booming market. However, this could create more challenges for landlords with new tax laws and being able to operate within the law. Despite all of this, landlords as well as agents must be aware of the changes in the market and make the necessary adjustments to continue running a profitable business.