Landlord Finances, Taxes & Saving Costs
Being a landlord is often expensive, especially if you’re making poor decisions.
I’m not just talking about the initial capital required to put money down for a mortgage, but I’m also talking about the ongoing costs of being a landlord. It can quickly escalates because being a landlord requires continuous investment. Most notably, this business is about investing in people, particularly your tenants.
You need to provide clean and safe living conditions, you need to ensure you’re meeting all your legal requirements (which often costs money), and you especially need to expect the unexpected, which is always a money-sink.
There’s no doubt about it, this can be an extremely expensive business.
Needless to say, since this is a profiteering business, landlords are liable for income tax from any gains.
It sounds all doom and gloom, but it’s not really, it’s just a case of knowing how to keep your costs down, because it’s entirely possible. This section looks at the financial costs of being a Landlord, but mainly focusing on ways that Landlords can reduce costs and maximize profits. For an ultimate guide on how to keep costs down, I would recommend heading over to the Best Ways For Landlords To Cut Costs & Save Money article.