Land Agent and Property Development CompanyLand Agent and Property Development CompanyLand Agent and Property Development CompanyLand Agent and Property Development Company
  • Home
  • About Us
    • About CPG
    • Our Service Guarantees
    • Creative Property’s Covid-19 Policy
  • Our Services
    • Land Owners
    • Property Owners
    • Property Professionals
    • Property Consultancy
  • Acquisitions
  • Investors
    • Investing with CPG
  • CPG Blog
  • Contact Us

The Advantages And Disadvantages Of Being A Landlord

    Home Advice For Landlords The Advantages And Disadvantages Of Being A Landlord
    NextPrevious

    The Advantages And Disadvantages Of Being A Landlord

    By Harvey Raybould | Advice For Landlords | 0 comment | 9 July, 2016 | 0

    Advantages and Disadvantages of being a landlordIf you are thinking of becoming a landlord then there are a few things that you need to know first. It sounds great using a home that you earn to earn a regular income but just like any other business there are snags that need to be overcome.

    What Are The Advantages Of Being A Landlord?

    Regular Income

    The major advantage is the income that you will receive from tenants on a regular basis. You will collect rents from your tenants each month that will more than cover any mortgage payments that you have and provide an operating profit for you.

    Property Appreciation

    While you are collecting these profits each month, it is very likely that the value of your property is appreciating (if you bought a property in the right area) so when you are ready you can sell your property for a profit as well.

    Tax Breaks

    Although you will have to pay tax on your rental income, there are a few tax deductions that you can take advantage of as a landlord. You can claim the following expenses against your tax bill:

    • Professional services
    • Accounting services
    • Wear and tear depreciation
    • The cost of buildings and contents insurance
    • Cleaning the property and gardening
    • The replacement of damaged water pipes and disposal ducts
    • The replacement of damaged furniture
    • Repainting the property

    It Is Your Own Business

    Being a landlord means that you are running your own business and this means that you will be making decisions about the operational costs, drawing up rental contracts and agreements and if and when you sell your property. This can be very stimulating and rewarding.

    With the income that you receive from renting you can save this for a pension fund or other purpose. If you find yourself without a home for some reason you can move into the property as long as there is space of course.

    Disadvantages Of Being A Landlord

    Your Money Is Tied Up

    Some landlords are concerned that their money is tied up and they won’t see a return for a long time. It is better to go for the long term view if you want to be a landlord. Should you decide to sell your property then this will take time too.

    Regular Costs

    There are a number of costs that you will incur as a landlord. You will need things such as landlord insurance, maintenance of the building, the supply of furniture and fittings, a gas safety certificate and an energy efficiency certificate. Then there are the costs of finding tenants such as advertising or using letting agents.

    It Can Be Time Consuming

    Landlords can often find themselves at the beck and call of the tenants. Dripping taps, boilers that are not working and other minor problems need to be sorted out quickly. It can be a time consuming activity even with one property let alone if you are contemplating a portfolio of properties.

    You Need To Understand The Legal Position

    You will need to spend time understanding the legal issues of being a landlord. For example where do you stand if the rent is late and how do you handle deposits and evictions. The smart landlord is always aware of these things.

    Conclusion

    In our view the advantages of being a landlord far outweigh the disadvantages. You can hire a letting agent to do a lot of the maintenance work or hire a local trade’s person. The income potential is very exciting and there is so much demand for good quality rentals at the moment.

    advantages and disadvantages of being a landlord, landlord pros and cons, landlord UK

    Leave a Comment

    Your email address will not be published. Required fields are marked *

    NextPrevious

    Search


    UK Property Blog

    • Advice For Landlords
    • Buying and Owning Property
    • Buying and Selling Land
    • Commercial Property Updates
    • Design and Renovation Tips
    • Kent: Articles and Updates
    • Property Investment
    • Renting Property in the UK
    • Selling Residential Property
    • UK Property Market News

    FREE Property Investment Guide


    OUR MEMBERSHIPS…

    Land Agent and Property Development

    Registered in England and Wales No: 09252187

    OUR LATEST NEWS…

    • Kent villages that are good for London commuters

      Kent To London: The Best Kent Commuter Towns and Villages [2021]

      I think you will agree with me when I say: London’s house

      9 April, 2021
    • 10 things that sell houses

      Sell Your House Fast – These 10 Things Can Help

      Let’s Be Honest. It’s not always easy to sell your house fast

      9 April, 2021

    OUR CONTACT DETAILS…

    Creative Property Group
    Letraset Building, Wotton Road, Ashford, Kent, TN23 6LN

    Phone Number
    0800 488 0027

    Email Address
    [email protected]

    Click here for our Covid-19 Policy

    © 2021 Creative Development Services Limited | Land Agent and Property Development Company | Privacy Policy | Terms and Conditions
    • Home
    • About Us
      • About CPG
      • Our Service Guarantees
      • Creative Property’s Covid-19 Policy
    • Our Services
      • Land Owners
      • Property Owners
      • Property Professionals
      • Property Consultancy
    • Acquisitions
    • Investors
      • Investing with CPG
    • CPG Blog
    • Contact Us
    Land Agent and Property Development Company