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.F.A.Q.

Frequently Asked Questions

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	What % return can I expect to get from my investment? In recent years the return on rented property in London has been 8-10% per annum. This means that a property bought for say 100,000 has produced a gross annual rent of about £8000, but there are the landlord's costs to be paid from this. In the early years, therefore, whilst the capital growth may still be good (if property prices are rising), the returns are modest. However, as the years go on, the returns can be extremely good. Unlike most forms of investment, the landlord can take out a mortgage against his property. If, say the landlord’s investment is just 20%, then, as rents rise with inflation, the return on the original investment can be very large, and increasing. .
	Where is the best place to buy? For an investment landlord a good property to buy may not be one which (s)he would want to live in. In the case of a leasehold property the service charge and ground rent are important costs to consider when looking to buy as you will have to pay them. If these costs are high they could have a marked effect on your net income. An investment property should ideally have the following characteristics: Reasonable purchase price High return Potential for a good re-sale price. We are familiar with many of the best areas. .
	If some refurbishment work is required on the property, can you help? Yes! We have contractors we use and trust and can organise general refurbishment. This would be subject to a separate fee varying according to the level of refurbishment required. .
	What furniture is required in a property? We can advise on what furniture should and should not be put in the property. As a general rule of thumb, less rather than more furniture is preferable. Letting the property unfurnished is another option. The rental value of an unfurnished property is often the same as furnished. .
	How should I present my property? Most tenants like light, clean and spacious properties. If you have particularly strong styles of decoration and or furnishing you may reduce the number of people who will be interested in renting your flat/house. Classic styles and neutral colours are often preferred. Cleanliness is very important and ideally if it has just been redecorated so much the better. .
	What are the tax implications? Under the self-assessment tax legislation introduced in April 1996 you will need to complete an annual tax return. Depending on your individual situation it may form part of your overall tax liability or if you are an overseas landlord it may be your only asset in the U.K. In any case tax will be due on any profit resulting from the letting of your property. Overseas landlords need to complete a NRL1 form to apply to the Inland Revenue for your agent to pay rent gross to you. If the landlord´s U.K. tax affairs are up to date then their letting agent will get an exemption approval from the Inland Revenue. If approval is not given the agent is obliged to deduct tax from rental income (less expenses) and make quarterly returns to the tax office. .

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Hartswood Property Management Ltd.
10 Bedford Corner, The Avenue, London W4 1LZ
Tel: 020 8994 8400 Fax: 020 8994 8558
E-mail: info@hartswoodproperty.co.uk

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