The Property Podcast ASK473: Can I deduct my own management costs? PLUS: Is it time to buy in Dubai?
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Apr 22, 2025 This week’s discussion dives into property management strategies, exploring whether managing personal properties through a limited company can enhance profits and reduce taxes. The hosts share insights on the potential pitfalls of this approach. Additionally, they tackle the intriguing question of investing in Dubai, covering the buying process and strategies for potential investors in this vibrant market. It's a mix of practical advice and captivating investment ideas!
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Verify Genuine Property Management
- Ensure that your limited company genuinely manages your personal properties to justify charging management fees.
- Consult with tax professionals and consider getting multiple opinions before implementing such a tax strategy.
Separate Property and Trading Companies
- Avoid mixing trading activities with property holdings in a single limited company as lenders typically prefer simple property wrappers.
- Consider setting up a sister company for management services, being mindful of additional costs involved.
Charge Competitive Management Fees
- Set management fees at a competitive market rate to maintain legitimacy and attractiveness.
- Charging around 12 to 15% is reasonable depending on the area but avoid excessive fees.