8 Investment Property Documents That Landlords Should Keep

The financial records you should keep should fall into these three main categories: rental income, allowable expenses, and capital costs.

Rental income

Keep records detailing all of the rent you charged and received, as well as the dates each property was let out.

Allowable expenses

These are the costs that are involved in letting out or managing your property investment portfolio these may be subtracted from the rental income to reduce your taxable profit. Those expenses can include all or part of these costs:

8 Property Investment Documents That You Should Keep

1 – Documents relating to fees paid to letting agents and accountants, and for legal Fees.
2 – Documents for property insurance insurance for Homes and Commercial buildings and contents;
3 – Documents showing the interest on your property loan
4 – All paperwork regarding maintenance and repairs on your Investment Property.
5 – Document the utility costs;
6 – Make sure you document the rent, ground rent, and service charges.
7 – Keep records of your Council tax bills;
8 – advertising costs not to mention to document other direct costs of letting out the property.

Capital costs

You may claim different types of allowances for the cost of furniture and equipment you provided with the property. You may also deduct certain capital allowances for cost of equipment relating to your lettings business. To take these deductions, you need to keep records showing exactly how much these items cost you and what date you purchased them.

For all of your expenses, an accountant should give you guidance on exactly what you can claim and how to keep the required records. In general, you should document all of your income and expenses by having rent books, receipts, invoices, and bank statements. Remember to keep your business and personal records separate.

Finally, if you do profit from selling property that is not your primary home, you may have to pay a set amount of capital gains tax. Some of your costs should be deducted when calculating this amount of this tax, so make sure you keep a record of when you purchased and when you sold the property.

The acquisition and the sale price, all buying and selling costs, and the cost and dates of improvements. yearly capital gains tax reductions are available to landlords under certain conditions. Confirm with your accountant what you can claim and when so you can then plan to sell your property at a tax advantageous time.