18 July 2016
18 July 2016,

Recent tax changes are forcing landlords to examine their property portfolios in even greater depth. It’s not only new investors seeking buy-to-let property for sale that need to examine their profits carefully. Even experienced landlords need to assess costs, rental yields and margins to ensure their investment is performing as it should.

Maintaining Your Property – Is it Worthwhile?

When pressure is on to get a good return on your investment, maintenance suddenly looks like a bit of a luxury. After all, if you’re already generating a good rent from your property, and you have no problem getting tenants, why bother?

However, there are instances where it pays to maintain, improve or fully renovate your property. Here’s some tips about when you should consider putting the money in – with a view to getting more money out!

Tips – When to Maintain or Improve Your Property

Chances are, when you first began to invest in property in the UK, you were focused on improvement. You may even have been actively seeking a buy-to-let property for sale that offered renovation potential – which meant you could make a profit from improvement and capital growth.

However, as time goes on, maintenance can slide. Listed below are some situations where it’s important to maintain or improve – or adversely impact your profits in the future.

  1. Wear and tear. It’s tempting to ignore basic wear and tear if your property is generating a good profit. However, shabby patches in carpets soon turn into rips, and leaky taps can cause serious water wastage issues in the long term! Also, by attending to these small problems, you’re showing your tenants that you care about their standard of living – which improves your working relationship with them.


  1. Between tenancies. If your property is empty for a period of time, take the opportunity to assess it fully. It’s far easier to do work on the house if no-one is living there! It’s also a great opportunity to add an extension or make a significant improvement, with a view to boosting rental yield. Ask a specialist property investment agent what sort of profit they think you’ll generate from significant improvements – then weigh up whether or not it’s worth it.


  1. Extending tenancies. Sometimes, improving your property can encourage your tenants to stay longer – which ensures a steady income. If, for example, you’re renting to a family, and you know they’d like more living space, extending the property not only provides them with the additional space they need, but also makes them feel valued. The extension should also add capital value on to your property, and pay for itself in the long-term. Even if your tenants leave, you’ll be able to charge a higher rental fee to the next tenants.


Know Your Tax Rights

Bear in mind that you’ll be able to claim some forms of work (namely maintenance and refurbishment) against your income. Significant improvements can only be deducted from capital gains – which you’ll only receive when you sell your property. If you need advice in this area, talk to a specialist property investment agent.

The Buy2Let Shop in Bromley

If you’re looking for buy-to-let property for sale, or want advice on how to develop your property portfolio, speak to The Buy2Let Shop team. We’re experienced property investment agents in London, and we’ll help you to find the right property for your requirements.

We also offer assistance with buying a house at auction, and hold property investment seminars in London, to help extend your knowledge of the current property market. To find out more, visit The Buy2Let Shop site today.

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