With the changes to the tax laws for buy-to-let landlords, many are having to consider increasing the rental income they receive per property in an effort to gain any return on what is a substantial financial investment.
One area where expenses can still be offset against income is the maintenance and upkeep of the let property, and as a landlord, one has a duty of care to ensure the safety and well-being of tenants. Sadly, in many areas, landlords take this to mean doing as little as possible maintenance wise to remain within the law.
With mortgage interest being removed from the calculations landlords are set to pay far greater amounts in tax, effectively wiping out profits completely for many. Does this mean maintenance will become non-existent, or carried out DIY by the landlord or unskilled workers working for beer money? This type of thinking is a short-sighted solution to a problem which is not going to go away.
Finding a Fix
The only real solution is to upgrade facilities, improve maintenance, and decorate to a level where rental income can be increased. While the expense of work undertaken to increase the property’s value such as loft conversions or extensions is not reclaimable, maintenance and repair work, to bring the property up to a level where top rents can be asked for, is. As one tenant leaves, getting your handyman in Coventry to repair recurring problems and redecorate the property, rather than just patching it up, allows for higher rents to be asked of prospective new tenants.
What is becoming increasingly popular is the converting of old Victorian style houses into five or six bedsits. In areas with high numbers of students seeking accommodation such as Coventry, the move is gaining in popularity. With landlords seeing a higher return on their investment, and students paying less for accommodation than they would when house sharing, converting to bedsits would seem a win-win situation for all concerned.
If you already use Coventry handyman services, discussing the viability of property conversion to bedsits is well worth considering. Most long established facilities management companies have tradesmen skilled in all areas of property maintenance, including electricians and plumbers, and are more than capable of undertaking this type of project.
With profits set to reduce or even disappear altogether over the next few years there has never been a better time to consider investing in a professional, high quality property maintenance company such as Trade Squad Ltd., to return the building to a position where it is capable of achieving its full rental potential.
Sources
Buy-to-Let: Creating bedsits for 20pc returns is just a response to the market, The Telegraph
Nine ways to increase your buy-to-let profits, The Telegraph
