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

  • Entrepreneurs

    Starting lettings business to manage my stock

    i am looking for some advice, I want to give up my day job and manage my own rental properties. What options are available to do this? ie.have 2 Limited companies one for property management separate from rental, have both rental and management under one limited company or have management as sole trader and rental as limited company ??

    Thank you

    0
    0

    Your tax position will determine whether you invest as a limited company or sole trader.  If you are not a higher rate tax payer, then generally, it makes sense to invest as a sole trader.  However, this is a very general comment and it would be prudent to seek professional and insured advice from a qualified tax advisor.

    With regards to the rental business, then that would likely be best as a limited company, especially if you want to start managing other people's properties.

    There is a great deal of compliance associated with lettings now, so you would need to bring yourself up to speed on this.

    If you are thinking of managing other landlords' properties, then you could short cut the whole process and buy a franchise - like the one offered by Property Tribes' partner Northwood.

    Or if you establish a lettings brand, you can later decide to move it into the Northwood business.

    If you call the Northwood franchising team, I am sure they would be happy to talk through the options at no obligation to yourself.

    ​Hope that helps?

    0
    0

    This is a life changing decision so please don’t rely on a few blogs. Get advice and properly properly paid for advice too.

    anyone can answer your question but one needs to know you and your wider circumstances and plans before advising how best to do it.

    remember don’t be penny shy and pound foolish!

    0
    0

    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    I’ve never been to a financial advisor or any advisor and felt like they’ve given me any advice (free or paid for) where I haven’t already known what they are saying - or sometimes even know better then what they are advising (where the advice will benefit them, such as pensions investments)

    Just becuse you pay for advice doesn’t mean it’s better - it’s still just someone’s opinion, and nobody knows what’s best except you - IF you are the right kind of person - the person who does research, reads forums, blogs, etc - because all the information is out there, it’s just if you can make the most of it.

    Give us some more details - and I’ll give you an answer - then research if what I tell you is suitable for you, go compare it with a FA. See if paid advice is better.

    But without knowing - how many property you have, if your a higher rate tax payer, if you have any other companies, if the property are in your name, etc.

    The main reason anyone usually wants to know these type of questions is tax - and avoiding paying as much as legally possible.

    Two companies will need to have different directors - or it could just be seen as the same company anyway.

    Also - if you have £100k into one company - you pay 18% tax - that’s £18k, if you have two companies - £50k into each - that’s £9k tax each company... £18k but you have the accountants costs of two companies to pay.

    You’ve got to think what you are trying to do - and break down what you want.

    0
    0