It's no secret that you can make your money go further in property compared to leaving it in a bank, and with the current stamp duty holiday, there's no better time than now to expand your property portfolio. Whether you've got one property or a whole host of properties there are some ways you can ensure the money coming in, is greater than the money going out.
Screen Your Tenants
One of the best ways you can cut costs as a landlord is to find good tenants. If you advertise your property through an estate agent, they will screen the tenants for you by doing a credit check, talking to references, and employers, as well as ensuring tenants have enough funds to cover the rental costs.
Bad tenants will cost you in the long run with rental property damage, late rent repayments, as well as evictions, and vacancies.
Review Your Mortgage
Mortgage payments are usually the biggest expense for landlords, but you can save a lot of money if you regularly review your mortgage policy to ensure you're getting the best possible deal. If you're struggling as a result of the pandemic, some lenders are allowing you to defer mortgage payments.
Choose Specialist Insurance
When you're a landlord it's important you take out insurance that caters for landlords. Companies like HomeLet provide landlords with this tailored insurance cover. Unlike home insurance, landlord insurance covers against risks relating to your buy-to-let property and includes building insurance and property owners' liability insurance. You can also add many other covers, such as loss of rent, tenant default or accidental damage.
Keep On Top Of Property Maintenance And Repair
The annual cost of maintenance and repair is one of the biggest expenses in the rental market. Ensuring that your property is always in excellent condition will not only help cut costs and prevent it from depreciating in value, but it will ensure you're able to get the maximum yield.
Do As Much Maintenance And Repair Work Yourself
When there are repair and maintenance jobs that need doing, instead of calling in a repair man, do them yourself. The majority of jobs will be small cosmetic ones and can easily – and cheaply be rectified. Obviously for plumbing, gas, and electrical jobs, professionals should be called in. But for everything else, if you're unsure of what to do, YouTube is a great source of inspiration.
Have Competitive Rental Rates
To keep tenants in your rental property and reduce lost income from vacant houses, it's important that you charge a competitive market rate. Check Rightmove, Zoopla, and estate agents regularly to find comparative properties and charge accordingly.
You may find in times of uncertainty, like now, that you may have to reduce your monthly rental charges in order to keep tenants, but when the economy bounces back, you'll be able to maximize your income again.
Be A Good Landlord
Being a good landlord is just as important as having good tenants. If you're distant and unwilling to fix problems the tenants have, they are likely to treat the property recklessly, leave the property all together, or even take you to court. Not only will these have a negative impact on your funds, but they could impact future property rental potential too.
