To the uninitiated, buying property with a view to letting it out can seem like a very easy way to make money, but like most things in life, when you take a closer look it is rather more complicated. Being a landlord is an excellent way to generate a regular income and has the bonus that the rental property will always increase in value, however, it is not money for nothing. <\/p>\n\n\n\n\n\n\n\n
The\nincautious landlord will soon find that a poorly managed property is more\nlikely to lose money than turn a profit. \nHaving a clear understanding of the costs involved in running a rental\nproperty is crucial to the success of your business. It\u2019s important to remember that if your\nproperty is tenantless and your rental income is stopped, you will still need\nto pay the standing orders for services.<\/p>\n\n\n\n
Keeping your\npersonal finance separate from your business finance is one of the cardinal\nrules of business. If you ensure that\nyou have a business card from the outset this will make your record keeping far\nsimpler, especially when it comes to claiming back expenses. Having the rent paid into a business account\nwill ensure that there is no confusion about the amount of tax you should be\npaying.<\/p>\n\n\n\n
The government rules for allowable expenses are subject to periodic change so make sure that you stay abreast of developments<\/a>.\u00a0 Currently you can claim for water rates, gas and electric (unless paid by the tenant), insurance, agency and property management fees, services such as cleaning and gardening and the cost of replacing domestic items.<\/p>\n\n\n\nTrack\nyour expenses<\/strong><\/h3>\n\n\n\n