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As a landlord record-keeping is essential. Not only will it mean that you are organised and up to date but you are also required to keep certain documents by law and for tax purposes. In some situations, particularly for tax reasons, you are required to keep records for six years. Additionally, failure to keep certain records could result in a fine.
The main records you should retain are listed below.
Income and expenditure relating to your rental property
Retain all receipts, rent books, bank statements and invoices connected with your buy-to-let property. Keep personal and business related income and expenditure separated, where possible.
Rental details
- Rent charged and received.
- Service charges.
- Dates each property has been let.
Other expenses
- Fees, e.g. letting agents, accountants, legal.
- Landlord insurance.
- Utility bills.
- Council tax.
- Advertising.
- Interest on loans.
- Property repairs and maintenance.
- Rent, ground rent, service charges.
- Costs directly related to renting out property.
- Furniture and equipment receipts.
Personal time, assets and property
Keep a record of the time and personal assets you use for your business and the proportion of your private home you use for conducting your buy-to-let activities.
Selling your rental property
When it comes to selling your buy-to-let property then you may have to pay capital gains tax in which case you'll need records of the following information.
- Date of purchase or acquisition of the property.
- Date of sale or disposal of the property.
- Purchase and sale price.
- Buying and selling costs.
- Improvement costs and dates.
Safety
- Gas and electrical safety certificates.
- Energy performance certificate.
- Furniture and furnishings safety information.
By retaining records of income and expenditure and other safety documents you will be able to function as an effective and efficient landlord and comply with your legal duties.
Related articles:
Attracting and keeping tenants
Legal tips for landlords
Dealing with problem tenants
General landlord information (DIY, Inventories and more..)
Energy-saving tips for landlords and tenants
Financial tips for landlords
Buying a buy-to-let property (auctions, location etc)
Insurance for landlords
Using letting agents
Mortgage information for landlords
The information contained within this article is for general information purposes only, it does not constitute advice. Direct Line for Business endeavours to keep the information up to date and correct but does not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Direct Line for Business will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
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