Leasing a property is like running an investment business. Unlike stocks or ISAs, you can't just invest your money, sit back, and wait for a return. Being a landlord is a hands on experience that requires regular input.
Here are some tips for leasing your property.
Diarise important dates like rent reviews, break notice dates and lease expiry dates. Missing one could mean a lease you'd like to terminate continuing indefinitely, or missing out on a possible rent increase.
Some actions require a long lead time. Reviewing a lease may need to be done a year in advance of the expiry date.
Carry out regular inspections of the property. This can alert you to possible breaches of the lease, like unauthorised alterations, damage to the property or occupiers.
Have a good accountant and take tax advice from them. They will know what expenses are allowable against income and how to best plan your own expenditure on the property.
Have an exit plan. If you have a large portfolio and the plan is to sell properties to fund your retirement, then selling them all in one year can lead to a large Capital Gains Tax bill. Talk to your accountant about how best to stagger sales of properties.
Keep accurate records. Not just of income and expenditure, but also of the condition of the property prior to commencement of the lease and at its end. This helps with any dilapidation claims.
Don't forget: tenants have rights. Look after and consult with them. A happy tenant is an asset to your business.
Landlord and tenant law is complex. Take good legal advice prior to granting and throughout the term of the lease.