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Buy to Let is a British term which was first used in 1996 which refers to the purchase of a piece of property specifically meant for renting out, which is the to let part of the phrase. Buy to let properties are usually residential homes but they can also be student property or hotel room investments.
Buy to let mortgage loans are used for this purpose, where a person can own his own property and rent out another which makes him the landlord of that property.
Reasons for Renting Out Property
People who get involved in the Buy to Let process usually do it as an extra means of income if tenants stay for a fixed period of time, as well as an accumulation of wealth and investment for already affluent people when the value of the property goes up, so that they can sell the property at a higher price later on.
Buy to Let Landlord Responsibilities
There is a wide range of legal responsibilities a landlord must adhere to. Some of them are:
The first step of the process includes providing the tenant with a contract, as no deal can be conducted without one. The main type of contact in this term is called an AST(Assured Shorthold Tenancy), which gives tenants the legal right to live in the given property for a fixed period of time.
#2 Right to Rent
Landlords have the duty of assessing if the tenants have all the qualifications and meet all the criteria that is necessary to rent the property. It is also important to do a background check on the tenants history and proof of identification for legal purposes.
#3 Infrastructure Checks
Landlords have to make annual checks of the property before renting it out to tenants. This includes all provided facilities such as gas, electrical appliances, wiring etc as well as providing the tenant with a safety certificate for their reassurance.
This includes keeping the property clean and presentable as well as fully functional for the tenant, or in order to protect their investments. So regular hygiene checks, calling exterminators if need be, fire alarms and extinguishers installed, etc.
Reasons Why Landlords need an Accountant
There is a multitude of reasons as to why buy to let accountants are needed by landlords when renting out. For instance, buy to let accountants offer an immense amount of knowledge and expertise to their clients such as property tax, which saves landlords a lot of money and time.
Buy to let accountants also help their clients to understand and be made aware of any legislation changes. They remain up to date with the latest developments and notify their client of the same.
Along with legislation changes, buy to let accountants also remain up to date with daily accounts, which are legally required. They advise their client and let the landlord know if they will have a profit or loss, have to adjust rental payment and cost as well as keep track of any late payments and ensure that all records are kept in order.
Besides this, they are also needed by landlords to help them save on taxes, claim expenses and use the latest software to assess their financial status.