X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    Increasing rent to cover Section 24 tax bill

    Increasing the rent because of s24?? You mean just like so many landlords reduced rents when interest rates fell hugely after the last financial crash?

    Aye, right.

    1
    2

    silly post.

    if costs rise, then the price should rise especially as landlords exit and supply dwindles.  if costs fall then new entrants will cause additional supply and price will fall.

    0
    1

    Evidence of that happening in records of rents dropping after the last financial crash?? Dec 07 5.5%, Feb 09 0.5%  - see

    https://www.bankofengland.co.uk/boeapps/...k-Rate.asp

    £5 to an agreed housing charity if you have some hard data showing that happening.  Lets just be honest with ourselves and others.


    Best wishes to all

    0
    0

    my example assumes all other things are equal.

    there are of course many factors all influencing supply, demand and costs.  so for instance if there was a big influx of immigrants ramping up demand then that would negate the affects of lower costs.

    0
    0
    All I’m saying is that increasing rents to the market rate will soften the impact of s24. There are many LLs out there that are charging less than market rate. I’m one of them.
    0
    0

    I use three things to combat S24

    1 when I have a void I increase rent

    2 I use My Pension to claim back Income Tax

    3 Get better Mortgage deals

    I hope the Govt will raise the Income Tax threshold in future budgets

    And I think we may see low Interest rates for years to come

    S24 is a knock but you can avoid a lot of it with planning



    0
    1

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    I also only increase rents when I get voids. Problem with this is I’ve got some tenants that have been there several years and don’t ever look like leaving. The longer they stay the cheaper my rent is in comparison with other rental property. Therefore even less likelihood of them ever leaving! I need to harden up and implement a new rent strategy.
    1
    1

    Being in this game for over 30 years My own exsperiance is If you have a good customer maybe paying a little less rent its ok

    You have to factor in a void costs money to re rent

    Council Tax

    Updating

    Marketing

    Fees if your using an agent

    You can easy lose out   on this game and you could get a new customer who is not as good as your old one

    Better the devil you know ect  If your running a Large Business you will get voids thats when I take the opportunity to raise rents

    1
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    I agree with you. I’m probably going to carry on waiting for voids before increasing rents as overall this is the most profitable strategy. Sometimes theory doesn’t match reality.
    0
    0

    Agree - in our 18 years we have NEVER forced a tenant out of any of our properties due to low rent. We rather have low rent than no rent Smile

    1
    0