www.landlords.org.uk national landlords association

www.landlords.org.uk

National Landlords Association



Professional Practice For Profit

The campaign aims to:- Highlight the importance of operating in a business like manner, regardless of your portfolio size- Help you maximise your profit margins

March 2014 – July 2014

Today we will be looking at ideas for maximising future returns


Maximising future returns

Worryingly only 48% of landlords consider their property lets ‘a business’.

Providing a home in return for rent is a business exchange. - Landlords should consider their lettings as a business to turn profits

Good, well run businesses should make profits- Professionally-run businesses make more profit


The business plan

Where do you want your business

to be in five years’ time?

Create a business plan- Consider the next 1, 3, 5 years- Consider each property separately- Consider market movements- Consider expansion/reduction plans


Expect the unexpected

Be prepared for those worst case scenarios- rent arrears- expensive repairs- voids

Build a buffer into your budget- budget to receive 10 months’ rent in every 12 month period

Protect yourself- purchase insurance policies to protect your income


Insurance

NLA Rent Protect- protects you if your tenant fails to pay the rent- covers you for up to £2500 per month in unpaid rental income and it covers legal costs to help you in the recovery of unpaid rent- £10 discount for NLA Full Members

NLA Property insurance- As a landlord it is vital that you take out residential landlord property insurance as normal home insurance policies do not cover essentials such as public liability and alternative accommodation- 15% discount for NLA Full Members


Voids

Even the most loyal tenants may want to move on at some point

Avoid the surprise factor - discuss future plans- offer resolutions to problems/faults

Remember the rule: budget to receive 10 months’ rent in every 12 month period- this will protect you from unexpected costs


Rent arrears

Can happen to any tenant, even those who have been thoroughly referenced

- anyone can lose their job or experience relationship breakdown

Maintain an open dialogue- encourage tenants to discuss rent problems and create short term solutions

Remember the rule: budget to receive 10 months’ rent in every 12 month period- this will allow you to continue to make mortgage payments if your tenant fails to pay


Keep on top of your rent payments

NLA Rent Manager- NLA Rent Manager is an online landlord software solution that allows you to better manage every aspect of your rents - Designed by landlords, for landlords, NLA Rent Manager will make the task of rent management much easier, saving you both time and money in managing your rents, no matter the size of your portfolio- Don’t let rent arrears, keep on top of missed payments with NLA Rent Manager, FREE to all NLA Full Members


Budget management

Adapt your budget according to changes and unexpected costs – review your annual budget every month to check you’re on course

Build in rent increases

Build in planned expenses- Scheduled maintenance

- Gas Safety checks - redecoration requirements - licensing costs


Tax planning

All rental income must be declared – even if you’re making a loss

Schedule tax returns

Talk to an accountant if you’re unsure


Seek tax advice

Stern and Company- NLA Recognised Supplier- Expert tax advice and record - fixed monthly fee.

NLA Tax Investigation Insurance- HMRC routinely check a proportion of tax returns

- They may also decide to conduct an extensive examination - All these enquiries take time and money to sort out. - NLA Tax Investigation Insurance is free for NLA Full Members


Calculating yields

There are a number of yield calculations, each useful in different ways

Gross yield

Net yield

Yield on actual investment


Calculating yields

http://www.landlords.org.uk/yieldcalculators


Tips and ideas

How would you manage your business plan? What would you advise?


And finally…

For more information- On points covered in this presentation- Business advice- Help with professional developmentVisit www.landlords.org.uk/professionalpractice

The NLA Telephone Advice Line can help with specific questions on practical issues- 0207 840 8939 (9am – 5pm, Monday – Friday)

To join or upgrade your membership- Speak to your NLA Local Representative- Contact the NLA Membership Team on 0207 840 8937- Visit www.landlords.org.uk/membership

www.landlords.org.uk national landlords association

Documents

insurance nla rent

rent problems

task of rent management

recovery of unpaid rent

profit slide

budget budget

income slide

members nla property