5 Challenges Landlords are facing in This Era
Most people really don’t know, but regulations keep on changing for landlords every year. So they have to keep themselves updated about it. In the same way this year some of the regulations have changed by authorities. And that obviously comes up with lots of new and advance challenges for landlords. So first of all they should prefer to get landlord certificate and after that they have to get themselves prepared to face these challenges. Here in this article we are discussing about challenges landlord are facing these days:
1. Challenge Related to Landlord Tax:
Just like other types of investor landlords also have to deal with heavy duty tax. And this tax ratio keeps on changing every year. So you should know how you have to deal with it, but firstly you have to keep yourself updated about it. And try to do a little speculation about the tax ratios, so that you would take steps accordingly if tax will rise next year. According to recent analysis the average revenue for landlords has actually fallen from 4.91% to almost 4%.
2. Challenge Related to Fire Safety:
Another challenge that landlord has to face is fire safety of the property which they are buying, selling or renting out. This year the rules and regulations related to fire safety have become too tough. And authorities are inspecting lots of building for making sure that everyone is following these regulations or not. And there are some strict orders to make all the rental properties safe and secure from fire. And that will be the biggest challenge that the landlord has to face. So as a landlord you have to be extra careful and try to meet all the regulations related to fire safety in the rent out building. Otherwise, you might have to bear penalties.
3. Challenge Related to Housing and Planning Act:
Another challenge landlord is facing is related to housing and planning act. So first of all you have to keep yourself updated about these changing regulations. After that implement these regulations while renting out or building a new building. Otherwise you have to pay high cost penalties for it.
4. Challenge Related to Giving Power to Tenants:
Landlords should be well aware about the recently announced changes related to rent repayment orders. This regulation is actually an extension of tenant privileges. According to these regulations, tenants can appeal to get almost one year rent back from the landlord. That could be in the form of universal credit or by repaying of any type of housing benefit. And you should know that only local authorities can initiate this procedure according to the Housing and Planning Act.
5. Challenge Related to new Energy Efficiency Rules:
Last year it was the tenth anniversary of the certificate of Energy Performance that is the legal requirement for all the rent out properties. But this year new rules have included in this act that are directly related to the private rented out sector. And becoming reason to bring the EPC ratings at its lowest possible number.