There are several reasons why people choose to set up a limited company when choosing to become a landlord/property investor. One reason is that it's easier to raise finance as a limited company. Another reason is that it's easier to protect intellectual property rights. Thirdly, the recommended strategy by professional tax planners.
If you're thinking about starting a property development business, then you need to make sure that you understand how to register a limited company. You also need to understand what type of company structure will work best for you.
As accountants working with many clients from the property industry, we realise the countless reasons why people choose to set up a limited company when becoming a landlord. One reason is that it's easier to run a limited company than an individual. Another reason is that it allows you to protect yourself against personal liability. It also means that you can pass on the business to another person when you retire.
If you're thinking about becoming a landlord, here are some things you should know before starting out.-It's not just a 9-5 job: Be ready to be contacted at random hours for advice on how to respond to certain incidents, enquiring tenants, etc...-You are the centre of all the following people and activities (if you were a private landlord): the tenant, the letting agent, the debt collector handyman, and the negotiator. Some of these things could be replaced with professionals if you considered hiring a letting agency, an experienced plumber or an electrician and save yourself all the hassle. -Having an innovative accountant will pay off: Your accountant will ensure that you are compliant, aware of your tax liabilities, and explore opportunities for tax efficiency. Contact us, enquiring about our services for landlords and we can help you increase your property portfolio as we did with many of our clients.
