The advantages of lettings

There are a lot of advantages for tenants in the rental market. Running a house day to day is expensive. Aside from the rent and bills, as a tenant you don’t have to bother about furnishing or decorating or the responsibility for the property upkeep.

For landlord it could provide a fantastic nest egg that they can hold onto. Not only is it a monthly income but it’s a lifelong investment that can be used for their retirement fund.

Income

Clearly the primary benefit of letting out your property is the monthly revenue. This is distinct from expenses relating to the property including the mortgage and insurances, but you can still generate a healthy income from letting your property out. If you own the property out right, then of course the rent money becomes straight profit. Provided you have the correct management of the property in place you will have a secure and steady income.

Security for the future

It’s not just the monthly income that has value, owning a property has the potential to provide some security for your retirement. You have the benefit of knowing that should your own personal circumstances change then you can move into the property or the knowledge that you can sell. Not only has your letting provided a useful income throughout your lifetime, you can also walk away with a sizeable lump sum.

Tax breaks

Of course you will clearly need to declare the income from rental property, but you’d be surprised how much of that property has tax-deductible expenses that can be included

• accounting
• professional services
• building repairs
• replacement of damaged furniture
• wear and tear and appreciation

Letting as a business

You may really enjoy the letting process and decide to to acquire more than one property. With a portfolio of properties suddenly you are in the position of running a potentially very lucrative business.

Letting through an agency

If you don’t have the stomach for managing your properties then why not pass them on to a reputable lettings agency. They can manage the liaison with your tenant’s day to day on matters such as upkeep and repairs so that you are just receiving the profits.