Experts issue advice for buy-to-let landlords

Posted: 09 Oct 2006 16:29:26 GMT

UK professional landlords are being advised to watch out for warning signs with tenants to ensure that they are not left struggling.

UK professional landlords are being advised to watch out for warning signs with tenants to ensure that they are not left struggling.

As levels of personal debt in Britain soar, many tenants are finding it hard to pay their rent and landlords are being warned to maintain close contact with tenants, even if properties are managed by an agent.

Unemployment can also leave tenants unable to pay, with defaults and arrears most common on expensive properties.

Buy-to-let broker Landlord Mortgages has published advice for landlords and suggests that landlords secure good references from tenants, secure good insurance and show understanding when tenants experience short-term difficulties.

A study by Paragon Mortgages found that around one in five professional landlords currently purchases property as a company rather than as an individual to reduce income tax.

However, property specialists claim that it is only worthwhile buying homes as a company if a landlord has at least 30 units because of corporation tax and other costs. Tax on profits when properties are sold is also likely to be higher when trading through a company.

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