It would be fair to say that life as a landlord has become increasingly difficult over the last few years.
A whole host of legislative changes have entered the mix, ranging from new stamp duty fees to how mortgage expenses are classified as a taxable deduction.
It means that you need to look at every way possible to maximize your profits.
We’ll now look at some of the best tips that you can adopt to make this happen through today’s article.
Review your mortgage deal
This is a tricky one – particularly in the current economic climate.
We’re seeing interest rates quickly rise, and now might be the time to take action. If your current deal is expiring soon, look to see how you can renew. It might be on a higher rate than you’re currently paying, but wait six more months, and that rate could have inflated even further.
It’s a delicate balance, but now is the time to make your decision.
Consider your void periods
Your void periods are the bane of your existence as a landlord. This is when your property is empty, and you’re not making any money.
Of course, there are plenty of occasions where you can do little about these periods. Tenant churn happens, and you have to accept these costs from time to time.
However, a degree of proactivity can help no end. As soon as you hear that your tenant is giving notice, get the property on the market as quickly as possible. Attempt to close that void period as much as possible.
Remember, it’s not just the loss in rent that will hurt your profits; it’s also the council tax and other fees that you will now be responsible for.
Check your insurance policy
When was the last time that you reviewed your landlord insurance policy?
This is something that you should be doing on an annual basis, at the very least. The market continually changes, and you need to ensure that you’re getting the right level of coverage for your needs. Remember, you don’t have to insure against contents, but you’ll need a specific landlord insurance policy to cover your needs.
Review your rental prices
You should be doing this regularly, particularly as the market changes.
Tenant demand will ebb and flow, and you need to make sure that your rental prices are in line with what people are willing to pay.
Of course, you don’t want to be too aggressive with your price rises. If you do this, you risk pricing yourself out of the market, and your property becomes vacant for long periods.
Remember, you can’t put prices up with a wallop – you’ll need to gradually increase them over time. Let’s not forget that this is part of the business, particularly with your own costs increasing, so try and take a pragmatic approach.