Question

advantages and disadvantages of being a landlord.

Answer 1

Advantages :

* A guaranteed income every month.

* Tax can be adjusted against the intrest on loan for the property with other income taxes .

*Renting a property can provide an ongoing income which can be saved as a pension, or for a 'rainy day', plus - if your living situation changes - it's also possible for you to use the property yourself

* Its like one of the option of managing yours fund or invstments with assured payback.

Disadvantage :-

* A heavy amount of invest ments will be getting locked.

*

It's not enough to simply have a house to let, being a landlord can incur many further expenses, not all of which are tax deductible. Some common costs include:

• Tax on rental income
• Tenancy deposit scheme
• Gas safety certificate
• Energy efficiency certificate
• Repairs and maintenance
• Landlord insurance
• Furniture and decoration
• Letting agency fees, should you choose to use one (read more on using a letting agency in our guide)

*

You'll need to be up to speed on the latest property law and legislation affecting landlords, and also know where you stand when it comes to late rent payments, deposits and evictions.

If things turn sour with your tenants you can expect to spend a lot of time - and potentially money - sorting things out.

* It can be a bit of a wrench allowing new people into your property, especially if you've lived there yourself and view it as your home. Being a landlord means cutting any emotional ties to your property .