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Good afternoon all, I'm a long time lurker of PT and recent member. Hoping to expand my portfolio when possible. I have found a few related threads but not exactly an answer.
I currently own one BTL which I have had for around 10 years. An opportunity has presented itself whereby my present tenant is moving out in the next month and I have found a new one. Currently the property is managed by a letting agent who has looked after it for as long as I've owned it, however although the cost for this is minimal (around £400 per annum) I'm wondering about self managing to save on the cost.
The way I'm looking at it, I could have the referencing, inventory, AST drawn up etc by either my present agent (if they are agreeable) or someone like Upad and then manage myself from there on. I was thinking of setting up a limited company with my wife and I as the Directors and paying a fee to the company each month. My wife is a non tax payer. Is this the right way to go about it and secondly is it legal/efficient.
Thanks very much for any suggestions. I don't want to do more work than I need to, but it seems like there are some key advantages.
Hi Craig,I am not sure if you saw this post, but it may answer your question:Use of ltd ccompany to manage own properties
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Hi Vanessa, thanks very much for the reply. (This is a really great forum by the way)!
I have been studying this thread today. I believe its saying that is possible/acceptable to do so, however it may be frowned upon by HMRC if the 'Property Management' company is only looking after one property, which is my own.
There is a chance that my wife, who would be in essence running the company could pick up other clients along the way but this wouldn't be the case form the outset.
Hi Craig. I'm contemplating the same thing. I have 15 properties in my own name I let out, I've set up a Ltd Co for new purchases (2 in the pipeline) and I manage my husbands 2 HMO's. I think setting up this company will be of financial/tax benefit but I think it will help me with staffing etc. I currently employ a couple of people as self employed but I think I can offer greater stability if I employ them through the new company and then off set their costs. I see opportunities to offer other services to other property owners locally. I'm not proposing to set up a full scale letting agency but think I need to set up and dip my toe in the water. I'm considering a local office too. We currently operate out of various spare rooms and it doesn't help that our paper files are in different places (I'm embracing technology but still like a paper file).
Happy to chat or hear how you are getting on.