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  • Buy-to-Let

    Setting up company to manage own property.

    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.

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    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.

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    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.

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