What are the most common maintenance challenges that Landlords face?

One of the most common maintenance jobs relates to washing machines - which seem to suffer in South West London, because of the hard water. Tenants should really be using a descaler once a month to clean the machines, but this is probably unrealistic to expect. Get a mid range machine, and if the manufacturer offers a reasonable guarantee for up to five years, it probably makes sense to get it (as long as the after care for the manufacturer has a good reputation). If a machine is less than ten years old, it is often worth trying a repair once, but if it keeps happening, you have to consider whether you should bite the bullet and get a new one. 

Another common issue relates to hot water tanks.  Once they get to 15 years old, they seem to crop up again and again in the problem list. Don't mess around. You cannot leave a tenant without hot water.

The best way to deal with maintenance is to set yourself a budget at the beginning of the year. Some years you will not need it all, others you will overspend. But it helps to soften the blow when the inevitable happens. 

Do I need a licence to let my property?

Licensing is creeping into the Private Rental Sector in England. The concept is good. But unfortunately, it tends to cost a lot - often £800 per property. And in my experience, much of this gets spent on Council administration, but the cost is eventually passed on to the tenants. Selective Licensing (for smaller properties - non HMOs) is area specific.  Wandsworth Borough Council told me recently that they have no plans for Selective Licensing, but we shall see.

Whatever you think about Selective Licensing, it is probably an unstoppable force, and you just have to bite the bullet when it comes. Even if you do not need a licence from the Council, you will normally need permission to let your property from your mortgage company, and often freeholder.

Furnished or unfurnished?

This is an easy one. For the professional market, which is strong in South West London, tenants who are likely to stay around for a while, will have their own furniture. So unfurnished is the baseline. For the student market, furnished. 

What can I claim as an expense for tax purposes?

We are not tax advisers. However, as experienced landlords we can at least point you in the right direction. Typically you should be looking at the interest portion of your mortgage, remortgage product fees, service charges, ground rent, letting agency fees, insurance, routine maintenance, and replacement (but not upgrade) of domestic items. You will, in any case, need to fill in an Annual Tax Return for HMRC.

What are the biggest levers you can pull to improve the operation of your buy to let business?

Looking back over the last few years, there are two levers that have really moved the dial on my own business. Firstly, I have focused on making longer tenancies my first priority. Of course, tenants do move on when things change in their life, and good for them. But the longer they stay, the better for everybody. You save on void costs. You save on changeover costs. And a longer term tenant has an incentive to look after the property. 

The second lever is to keep right on top of mortgage costs. It may seem counter-intuitive to pay a mortgage adviser. But I have found that a good adviser is worth every penny. And the payback is quick. Probably the biggest lever of all. 

PropertyBell Limited is a member of the Property Redress Scheme, membership number PRS009105.