Landlords Can Double Their Rental Income On Buy-to-Let Property

Landlord - Serviced Accommodation V Buy-to-Let Property Rental And HMO’s

Exploring Alternative Buy-to-Let Property Strategies in the UK: Serviced Accommodation, Holiday Letting, and HMOs

 

Introduction

Investing in property has long been a popular avenue for generating income in the UK, but with mortgage rates hitting a 16 year high, the standard buy-to-let model does not stack up alongside borrowing. While standard buy-to-let properties have traditionally dominated the market, alternative strategies such as serviced accommodation, holiday letting, and houses in multiple occupation (HMO) are gaining traction as landlords look to increase returns to offset high borrowing costs and more red tape.

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Many experts are predicting a property market crash – see Housing Market in Deep Trouble https://youtu.be/USGREwntT1I

 In this article, we will delve into the pros and cons of each strategy, as well as explore the associated risks and tax benefits for landlords under UK tax law.

 

1. Serviced Accommodation

Serviced accommodation refers to the rental of fully furnished properties on a short-term basis, often targeted at business travellers, tourists, or corporate clients.

 

2. Holiday Letting

Holiday letting is similar to the above model and involves renting out a property for short-term vacations, typically in popular tourist destinations.

 

3. Houses in Multiple Occupation (HMOs)

HMOs are properties rented out to multiple unrelated tenants who share communal areas, such as kitchens and bathrooms.

 

Tax Considerations

Landlords should be aware of the tax implications of each strategy. Depending on individual circumstances, there may be specific tax benefits, including allowable expenses and tax deductions. Seeking advice from a tax professional is essential to navigate the complex UK tax landscape.

 

Conclusion

Alternative buy-to-let strategies offer landlords in the UK diverse opportunities to maximize their rental income. Serviced accommodation, holiday letting, and HMOs each come with their own set of advantages and challenges. Understanding the risks, tax implications, and individual goals can help landlords make informed decisions when exploring these alternative strategies.

With the right management, there is no doubt that serviced accommodation can increase net returns for landlords, as well as removing them from current housing legislation and the forthcoming tougher legislation proposed under the Renters Reform Bill.

For more information on renters reform, see my YouTube video: ‘Trouble Ahead for Landlords’ https://youtu.be/_QpXWoYmG3U

If you would like more information and an assessment on letting your property hassle free, hands-off with FULL MANAGEMENT using the serviced accommodation model, email southherts@localagent.co.uk with your property details and location.

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