Important Things to Know About Being a Landlord in 2018

Though a lucrative and enjoyable role, being a landlord is rarely an easy one. With the laws constantly changing and new legislation coming into effect, it can be hugely difficult to stay on top of everything.

Miss a key piece of information or a minor change in housing standards and you could find yourself in hot water. Each and every year there seems to bemore key things you need to know about being a landlord and 2018 is no different.

Landlords Need to Know These Things in 2018

The Tax Relief Landlords Can Claim on Mortgage Interest is Decreasing - Up until April 2017, landlords could claim a hefty amount of tax relief back on their mortgage interest at their marginal tax rate. However, this is no longer the case. Now, landlords will only be able to claim tax relief of 50% on their mortgage interest. This is reducing further in 2019, down to 25%, and further again in 2020. Hiring a specialist property accountant can help you keep on top of these ever-changing codes.

Landlords Will Be Paying Higher Mortgages Rate - A number of mortgage base rates will increase throughout 2018, which could see landlords paying higher mortgage rates if they are coming to the end of a fixed rate deal. Landlords beginning a new mortgage could be paying a lot more than they initially expected.

Landlords to Join a Compulsory Arbitration Scheme- There are current plans to make it a legal requirement for landlords to sign up to a compulsory arbitration scheme, as a way to improve the way in which problems are solved between landlords and tenants. This scheme would provide tenants with a way to raise issues that are not being solved between the two parties.

There Are New Minimum Energy Efficiency Standards - As of April 2018, all properties must meet new minimum energy efficiency standards. Only properties with an energy performance certificate of E or above will meet this standard. Those that do not, will not be able to renew or grant a new tenancy until necessary changes are made. Any landlord that continues to rent a property without meeting these minimum energy efficiency standards risks fines.

Landlords to Pay Stamp Duty on Additional Properties - Anyone who buys a property in addition to their main home will have to pay a 3% stamp duty surcharge, including landlords who buy properties to rent out to tenants.

With so much to remember and keep on top of, it is sometimes best to use third party companies to help you out.  These days you can hire people to take care of almost every aspect of your landlord responsibilities, from property managers and solicitors through to specialist property accountants.  We asked Daniel Ruthven of F9 Consulting for any free advice he would give to anybody considering becoming a landlord in 2018, he tells us “Over the next few years Landlords will lose the ability to deduct loan interest when calculating profits from let properties, planning is essential to mitigate increased tax liabilities”.

Though being a landlord in 2018 can be tricky, it’s not an impossible task. With the right amount of knowledge about changes to property market and by staying on top of any relevant news, it’s possible to be a successful landlord with everything taken care of both financially and legally.