The culmination of all the changes to the buy-to-let market over the last few years has shifted activity to the professional end, with fewer and fewer new landlords taking the plunge.
That said, just because a landlord has a large number of properties or trades as a limited company does not mean they do not need support.
Here are our top tips when it comes to helping your landlord clients.
- Ensure they seek advice from a tax advisor or an accountant – Generating an income from a rental property has to be declared. Landlords will need to become more focused on their tax calculations and be as transparent as possible.
- Understanding the market – Investment advice is not the role of a mortgage advisor; however, it is essential that brokers understand the Private Rental Sector. This will improve and develop client connections leading to longer and more fruitful relationships. With all the significant changes, landlords will look to brokers for their knowledge and experience.
- Insurance cover – It is the landlord’s responsibility to make sure they have the appropriate cover. In most cases, they will have a lot of money tied up in property, so the chances are they will want extra protection for their investment. Although it is not a legal requirement, standard buildings and contents policies may not provide the level of cover they need. Additional information you can share with them about the types of insurance available will no doubt help.
- Make sure they understand they get what you pay for – Cutting costs can seem like the right thing for any enterprise, however, ensuring they have the right advisors and agencies in place (mortgage, tax, lettings etc.) will benefit all in the long term.