Most landlords aren’t in the property rental game for fun. It’s a business, and should be all about turning a profit. Part of making a profit is certainly making sure you’re charging the market rent for your lettings properties. It’s also essential to keep costs down, without compromising on the quality of service your tenants expect. Luckily, there are a few smart ways to do this.
Strike a Deal With Your Agent
Most novice landlords prefer to use a lettings agent rather than try to manage the property themselves. But you don’t have to blindly accept the first quote the agent offers you. If you bargain hard, you might be able to reduce the percentage they take. This is especially the case in a busy lettings market, and when you have more than one property requiring management.
Employ an Accountant
It seems counter-intuitive to spend money on an accountant in an attempt to save money. But an experienced accountant who knows the tax laws regarding rentals inside out can save you a fortune. They are the experts on what you can set against tax, and which allowances you should claim. Even if you only use an accountant once a year to complete your tax return, it’s money well spent.
Think About Landlord Insurance
One of the biggest risks you face as a landlord is a rogue tenant who trashes your property or doesn’t pay the rent for months. The legal bills for getting them out and then putting the property right can be exceptionally high. It’s worth taking out a landlord insurance policy which covers you for both rogue tenants and other major property disasters.
Cut Down on Empty Properties
A property which is sitting empty isn’t earning you any money. It’s far better to get a reliable tenant who wants to stay for the long term than several shorter term tenants paying the same rent. Each time a tenant leaves you have costs associated with marketing the property, running credit checks on new tenants, repairs and inventory checks. If your tenant does give you notice, start looking for a new tenant as soon as possible to keep empty periods to a minimum.
Second hand?
It’s the easy option to dash to Ikea and buy everything you need for a new property, especially when you’re letting it furnished. But there’s a booming second hand market on Gumtree, Freecycle and local auction houses. You can pick up some real bargains and give the property a bit of character too. Just make sure that sofas and electrical items meet current safety standards.
Plan for Maintenance and Repairs
Emergency repairs are by nature unpredictable. But if you know that your gas safety certificate needs to be renewed in August or that the house needs a coat of exterior paint, plan in advance. This gives you the opportunity to shop around and find the best quote for the job, rather than having to go with the only engineer available at short notice.
