Whether you are an expat looking to earn extra money or a retired person who has enough money to start your own business, property letting in the UK is a fantastic option. You don’t have to spend your time managing your own property, you can let it out to tenants who need to live elsewhere. There are many reputable Glasgow property letting companies who can give you expert advice and support you with some of the workload. Here is how to get started, as well as some factors to consider in the property industry:
Getting Started
One of the most important steps in getting started in property letting in the UK is to determine your overall goals. These will help you to decide which path to take and how detailed a strategy you need to create. Different people may have different goals, so make sure to understand what motivates you and what your end-goals are before you begin.
Rental Yield
The average rent of a property is a key determinant of rental yield. A rental yield should be at least three times the cost of the property, but not more than five percent. A higher rent will encourage tenants to stay longer. Ideally, the rental yield will be between 130 and 150% of the mortgage repayments. It is important to note that the average rental price of a property depends on the location.
Legality Of Subletting
The legality of subletting a property is not a question that you should take lightly. While you may be tempted to let your property to the highest bidder, you should consider the tenant’s best interests. A tenant who is not a good tenant may want to stay in the rental property for a short period of time. If this is the case, subletting is not recommended, and you should make sure that the landlord is comfortable with the subtenant’s payment record.
Tax Implications
If you’re thinking of investing in a property in the UK, you should be aware of the tax implications of property letting. The rules regarding paying tax on your rental income are complex and can be difficult to understand. There are ways to minimise your tax burden such as making full use of all tax bands, ensuring that you are gaining and profiting from the property, and taking into consideration the investment on short-term assets.
What Can A Letting Agency Do?
A letting agency can provide you with expert advice, quality maintenance, free property valuations, and help you to grow your investment. They can ensure that you are gaining the most out of your properties and advise you on next steps and ventures to take to increase your profitability. In addition, they will always ensure that your investments and assets are protected. They can pass their knowledge onto you by explaining legalities and difficult situations, to help you make the right decision.
