f you’re a landlord who has been reading the news lately, you’d be forgiven for questioning your choice of career, explains Carl Finch, Senior Valuer at SDL Auctions Graham Penny.

With tax advisers urging landlords to sell up (The Daily Telegraph), almost a quarter of landlords planning to reduce their portfolios (Rightmove) and a landlord exodus (The Negotiator) – to highlight just a few recent headlines – you may be wondering if now is the time to take a break from property ownership.

Changes to taxation have certainly made earning an income from letting property more challenging for some landlords. And in April 2020 things are set to get tougher, when tax relief on mortgage interest is fully phased out.

On top of this, changes to capital gains tax (CGT) come into effect in April, impacting tax relief and meaning your CGT bill must be paid within 30 days of the sale, instead of through your tax return as it is now.

Therefore, if you’re considering selling your investment properties, you may want to consider doing so before the April deadline.

And I’m sure you’ll appreciate that auction is the best way to get a good price for your property with minimum hassle for both you and your tenants.

Auction is fast, transparent and, because contracts are exchanged at the fall of the hammer, there’s virtually no risk of the sale falling through.

It also causes the least amount of disruption to tenants’ lives. The property is only on the market for four weeks and viewings are arranged in set blocks, minimising the disturbance. In most cases, the tenant has no plans to leave, so learning that the property is for sale can be distressing but, by selling to another landlord at auction, they can stay in their home.

Although the headlines focus on landlords disposing of their portfolios, there are always plenty more people keen to get into buy-to-let, meaning plenty of buyers for your properties. And in fact, this ‘landlord exodus’ can be seen as a golden opportunity for smaller and first-time landlords.

If you only have one or two rental properties, you will have a smaller tax liability than a landlord with a big portfolio. Indeed, if you only own one rental property, there may not even be any tax to pay, depending on your other income, although your income will still need to be declared.

And if you’re just getting into the business, or building up a small portfolio, buying from an existing landlord can be a great way to get started, especially if the property is tenanted as you get to earn an income from your investment from day one. In the case of a House in Multiple Occupation, this also means you are buying a fully compliant property which already meets the rules and regulations, although obviously it’s important to check this for your own peace of mind, too.

Whether you feel you’ve had a good ride but now is the time is right to relax and enjoy the fruits of your labours, if you plan to stick around and continue building up your portfolio or if you’re just starting out on your buy-to-let journey, it’s vital to seek help from a specialist financial adviser who has a good knowledge of landlord taxation. They will know the best ways you can mitigate your tax liability, and may be able to save you a lot of money.