Whether you have one or one hundred properties, regularly reviewing your finances to ensure you are getting the most from your rental property is key. We have put together these six simple steps to help give your rental property a money saving makeover.
Remember saving money is great, but always make sure that you are not cutting corners in order to cut costs. Taking a look at your incomings and outgoings will highlight where true savings can be made.So here we go…
1. Regular rent review
Is your tenant currently paying the right amount of rent? Take a look at similar properties in the surrounding area and see how yours compares. Review this on a regular basis as the property market can always change.
A rent review may not mean an immediate increase in rent; it simply means you are taking current market conditions into consideration. Based upon your research you can then decide if you would like to put an increase in place.
Whilst an increase is good for your pocket, always ensure it is justified and fair.
2. Mortgage matters
Any property owner knows one of the biggest outgoings is a mortgage. Have a look to make sure you’re on a package that suits your needs.
With new products being introduced all the time, there is always opportunity for a better deal. Take into consideration not only what you would like from the product or service, but also what you need. Using the power of technology a number of easily accessible mortgage comparison websites are available to you or you can speak to a mortgage advisor.
3. Be protected
Having the right insurance is so important as the unexpected can always happen; whether it be an accident, emergency or even a deliberate act, having a comprehensive insurance package can save you hundreds of thousands of pounds in the long run.
It may be worth-while considering additional packages covering your boiler and perhaps plumbing if you feel these could be cost effective for your situation.
With any insurance product, do your research and read the small print to ensure the policy covers everything you need. Don’t simply be drawn in by the company who comes out the cheapest as they may not be what you need.
4. Review and renew
On a number of occasions throughout the year, organise a time to go and visit the property and the tenant. Use the visit to make sure your tenants are following the guidelines that have been set and to organise any necessary repairs.
Regular visits demonstrate to the tenant that you are showing an active interest in both them and the property and they also prevent small issues becoming big issues which could end with you being landed with a huge bill!
5. Long-term gains
Something that every landlord strives for is long-term tenants. Everyone wants a place they call home and the longer the tenants are there the better all-round. Reducing the turnover of tenants at the property can help to reduce property maintenance. When a tenant sees your property as their home they are more likely to look after it as if it’s theirs. You may develop a relationship with a long term tenant meaning they are more likely to let you know any issues sooner rather than later, as its in their best interest too.
Another money saving note is that long term tenants reduce your overall cost of remarketing your property and reference checking new tenants.
6. Agent experts
Using a professional letting agent is a great way to get expert advice, reduce risk and save you time and money. Agents have access to a number of tools which allow them to effectively market the property and get new, good quality tenants.
While the property is in tenancy they can manage the property for you and assist with carrying out any maintenance work. When one tenant moves out they can help to implement a smooth and effective process including carrying out referencing and credit checks. This will make sure you have the right tenant and can reduce void periods, maximising your income.
A number of legalities are involved with rented property but a professional lettings agent will make sure you keep up to date with the current legislation and also open up the potential to new opportunities and get the most from your property.
