As a landlord it can be reassuring to see the monthly rent arriving in your bank account, but it’s important to remember that money is not all yours.
Some of it will go towards ad hoc upkeep of the property, some to safety checks, mortgage and insurances, and some of it will be taxed.
For landlords with just one or two properties, meeting your tax requirement is easily done with a self-assessment tax return – providing you keep good records throughout the year.
This means keeping a rent book, filing receipts, invoices and bank statements and logging all income and outgoings in relation to the property.
But if you’re charging the same rent each month, why do you need to keep all this paperwork?
Simply, your income is unlikely to be the same throughout the year. At the start of the tenancy you will have had additional set up costs. That’s an easy one because it all happens at once, but when the tap stops working on the bath, it’s your responsibility to get it fixed. The price of the tap means your income will be reduced that month, but five months later when filling out a self-assessment, who remembers a leaky tap in their own house, never mind one they no longer live in? The answer is to file your paperwork!
This will also help with managing your finances and any larger unexpected outgoings occur. A broken cooker for example, or your tenant defaulting on their rent. No one wants to have payment issues with their tenant, but having all your records in order will make it easier for you to respond to, and remember: we are here to help.
Sharon Williams, Chair of Kent Housing Group, said: “No one wants to discover their tenant has failed to pay the rent, but should that happen landlords do not need to panic.
“Kent Housing Group can help landlords access the most appropriate advice for their situation, to ensure a satisfactory resolution to any tenant issues that may arise.
“The pandemic has been extremely hard for many people and it is no surprise that it has led to tenants falling behind on their rent. However, there is specific funding available for landlords that have been affected by Covid. Please get in touch with your local council to talk through the options.”