No matter what the function, any successful business management is dependent on the tight operation, control and oversight of its key assets. In the case of property management, accounting for the useful life and condition of those assets, as well as monitoring the cash flow of income and default payments from tenants, is particularly critical to achieve maximum profit.
In simple terms, property management is the fine balancing act between necessary outlay and generated income, which keeps a successful business functioning efficiently an interruption to either side of this balance damages professional reputations. Poorly maintained property not only lowers your material asset value, but also provides a lesser product to offer to the marketplace; bad cash flow, resulting from unreliable tenants, impacts on the profit margin on which you can operate your business, especially in relation to short hold tenancies, where the risk of default on payments is greater.
What is the Government Requirements Placed upon Landlords?
As a landlord, your responsibilities include complying with Health and Safety regulations, which includes maintenance of gas and electrical equipment, compliance with fire safety regulations, provision of an Energy Performance Certificate for every property and protecting your tenant's deposit in a government-approved scheme.
The local council may inspect your property for potential hazards and judges the standard of accommodation according to the HHSRS (Housing Health and Safety Rating System). In general, the Landlord must ensure that the structure and installations within the building are fit for purpose and include: the water supply; safe provision of gas and electricity (to include appropriate regular servicing); personal hygiene, sanitation and drainage facilities; means by which to prepare food safely; appropriate ventilation; heating of the rooms and required hot water. Obviously, these are all necessary business outlays, but failure to monitor and maintain these provisions for each property could result in enforcement notices being issued by a local council inspector.
All rental income must also be declared for Income Tax purposes, minus your day-to-day running expenses. Any mortgaged properties which you are renting must also be declared to your mortgage lender, who will assess the risk and rate of the loan accordingly.
Therefore, even at a basic compliance level on a single property, current legislation and accounting places considerable responsibility on the landlord, beyond management of rental income. When assessing what landlord software system will help you track these requirements, look for features such as management of policies, insurance and safety certificates, as well as the basic income/outgoings tracking aspect of your business.
Julia Guthrie
In simple terms, property management is the fine balancing act between necessary outlay and generated income, which keeps a successful business functioning efficiently an interruption to either side of this balance damages professional reputations. Poorly maintained property not only lowers your material asset value, but also provides a lesser product to offer to the marketplace; bad cash flow, resulting from unreliable tenants, impacts on the profit margin on which you can operate your business, especially in relation to short hold tenancies, where the risk of default on payments is greater.
What is the Government Requirements Placed upon Landlords?
As a landlord, your responsibilities include complying with Health and Safety regulations, which includes maintenance of gas and electrical equipment, compliance with fire safety regulations, provision of an Energy Performance Certificate for every property and protecting your tenant's deposit in a government-approved scheme.
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The local council may inspect your property for potential hazards and judges the standard of accommodation according to the HHSRS (Housing Health and Safety Rating System). In general, the Landlord must ensure that the structure and installations within the building are fit for purpose and include: the water supply; safe provision of gas and electricity (to include appropriate regular servicing); personal hygiene, sanitation and drainage facilities; means by which to prepare food safely; appropriate ventilation; heating of the rooms and required hot water. Obviously, these are all necessary business outlays, but failure to monitor and maintain these provisions for each property could result in enforcement notices being issued by a local council inspector.
All rental income must also be declared for Income Tax purposes, minus your day-to-day running expenses. Any mortgaged properties which you are renting must also be declared to your mortgage lender, who will assess the risk and rate of the loan accordingly.
Therefore, even at a basic compliance level on a single property, current legislation and accounting places considerable responsibility on the landlord, beyond management of rental income. When assessing what landlord software system will help you track these requirements, look for features such as management of policies, insurance and safety certificates, as well as the basic income/outgoings tracking aspect of your business.
Julia Guthrie
About the Author:
This guest blog post was written by Julia Guthrie, writing on behalf of Property Portfolio Software
This guest blog post was written by Julia Guthrie, writing on behalf of Property Portfolio Software
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