All you need to know about buy-to-let

The rental sector has become more difficult for landlords to navigate due to tax changes and an increasing number of laws aimed at protecting tenants’ rights and their safety.Compliance is essential, which means that buy-to-let investors need to be well-informed about more than 170 pieces of legislation.The Landlord’s Friend, a freshly- updated book by leading property expert Kate Faulkner and landlord and eviction specialist Paul Shamplina is a great resource.There are 50 chapters divided into three sections, which include preparing for successful letting, letting your property and running your portfolio the right way.

Expert opinion

Kate Faulkner, managing director of Propertychecklists.co.uk, says: “Landlords are going through a tough time just now. Not only are they being hit by increased taxes, the changes in legislation to the private rented sector are coming in thick and fast, with local authorities able to fine landlords who make mistakes up to £30,000 for each breach.“Meanwhile, tenants’ expectations of being delivered a beautiful home to live in rather than a temporary place to stay are increasing. The latest version of The Landlord’s Friend helps to equip both new and existing landlords with the information they need to invest and run a buy- to-let property successfully.”

Tax checks

The Inland Revenue takes a keen interest in the tax affairs of landlords and the Property Ombudsman’s annual report, released this month, reveals a record number of enquiries in 2018. They were up 22 per centon 2017.The top causes of complaints were communication and record keeping, management, tenancy agreements, inventories and deposits.While increased taxes and more legislation has prompted some landlords to sell up, Paul Shamplina, who runs Landlord Action, says: “I think it’s important to remind people that demand is still extremely strong, with the private renting making up 21 per cent of our total housing sector and predicted to rise to 24 per cent by 2021.“All of these people need somewhere to live and the government is under pressure to support a more professional sector, which provides a safe environment for tenants. There is still very much a place for landlords who take their legal and moral responsibilities seriously."

Buy-to-let tips

Here are some tips from the updated version of The Landlord’s Friend, which is available to buyon Amazon.Whether you already have investment properties or are considering buying for the first time, take the time to write down your investment objectives, what capital you can afford to have locked away for the next 15-20 years, and work out how much time you have spare to invest in buy-to-let. The results will determine what kind of property you should be investing in.When registering your title for a property at the Land Registry, include a contact address that is not your rental property. You can register a restriction of your property title (by completing Land Registry Form RX1), which ensures that no transfer of registry can take place without the consent of the named party. Make sure you sign up to the free property alert service, which will inform you if anyone attempts to change the register: www.propertyalert.landregistry.gov.uk/Realise you are in business and don’t see yourself as an amateur landlord. Even if you have just one property, like the majority of landlords (thought to be over 60 per cent), you need to look at all the various safeguards in renting, from choosing suppliers, to educating yourself on the changes, laws and regulations, by joining a landlord association such as the Residential Landlords Association or the National Landlords Association, and by going online and reading updated property news websites.If you’re considering self-managing, make sure you have the time to do this and don’t forget to put a price on your time, too. If you can’t commit many hours to managing your property, thenyou must use a letting agent.If you have a dispute over money with a company and the amount is under £10,000, it only costs around £100 to take them to the Small Claims Court. Trying to get your money back via the main courts could cost tens of thousands of pounds.Set your rent at a level slightly below competitors. Providing your property is well maintained, it will always be one of the first let and voids will be kept to a minimum.Check how the letting agent references tenants. If they only use online credit checks, this is unlikely to be good enough.To help protect yourself from criminal gangs who may cause damage to your property, make sure malicious damage insurance is included in your policy.The biggest mistake you can make is accepting a promise from the tenant that they’ll pay you today/tomorrow/by the end of the week. You need to address the reason they haven’t paid and get the next steps in writing as soon as possible.