5 reasons why landlords should hire a property accountant

Blog Property Accountants

The hiring of a property accountant can be a huge benefit to potential landlords and people who already own a property portfolio.

Investing successfully requires good financial information and up-to-date advice, and this is where specialist property accountants can really help. We’ve put together 5 reasons why landlords should hire a specialist property accountant.

Financial Expertise

It may be obvious, but property accountants specialists have a deep understanding of the financial aspects of property management. They can efficiently handle complex financial transactions, analyse income and expenses, be well versed in property taxes, and provide accurate financial reports. This expertise ensures that landlords maintain a clear and organised financial record of their properties, and will save a landlord time and money.

Compliance & legislation

Specialist property accountants are well-versed in property tax and the ever-changing legislation. They can help landlords maximise their tax deductions, ensure compliance with tax obligations, and minimise the risk of audits or penalties. By staying up-to-date with the latest tax laws and legislation, property accountants can provide valuable advice on tax strategies, help landlords optimise their tax positions, and ensure they’re compliant at all times.

Company accounts need to be kept up to date as a legal requirement. However, landlords that have access to up-to-date accounts can use this information to their advantage. This information can help landlords understand if they are running at a profit or a loss. They might need to adjust rental amounts or reduce maintenance costs. In addition to this, landlords can keep track of any late payments and ensure their receipts and bills are always in order. Accurate record-keeping will benefit landlords in the long term and will provide peace of mind that everything is in order.

Expense management

There are several expenses that landlords can be claimed against taxable rental income. The expenses must be for the purpose of renting out a property but can cover a broad range of costs.

Common types of deductible expenses include:

  • Water, gas, electricity and council tax bills
  • Letting agency and management fees
  • General maintenance and repairs to the property, but not improvements
  • Landlord’s insurance
  • Wages of people providing a service for the property such as cleaner or gardener
  • Accountants fees

The list above is not exhaustive, so for more information on what does and does not class as an allowable expense visit GOV.uk

Financial planning

Property accountants can assist landlords in developing effective financial plans for their properties. They can help create budgets, forecast rental income, and analyse financial projections. By understanding the financial health of their properties, landlords can make informed decisions on investments or expansion. Property accountants can also identify potential risks and provide strategies to mitigate them.

A property accountant who is able to supply landlords with up-to-date financial information about their business will allow the landlords to plan for the future.

Time and stress savings

Hiring a property accountant frees up valuable time for landlords, allowing them to focus on other aspects of property management or pursue other business ventures. Landlords can have peace of mind knowing that their financial matters are in the hands of a qualified professional.

Peace of mind

Overall, hiring a property accountant offers landlords a range of benefits, including financial expertise, tax compliance, and time savings. Landlord tax accounting changes and updates regularly, buy-to-let landlords have specific tax rules that apply to them so having a property accountant who is familiar with the industry will provide an invaluable service. By leveraging their specialised skills, property accountants can contribute to the success and profitability of property investments.

Whether you are a new landlord or are an experienced landlord, our specialist property accountants can help your business. Get in touch to discuss further.

Posted in Blog.