It’s really no secret that a spate of recent changes has made it more difficult than ever before for a great many British landlords to make a living. Things may be different at the very top end of the scale where landlords own an extensive portfolio of properties, but for those with just one or two homes to let out, it’s not quite as easy as it used to be.
The good news however is that in spite of on-going regulatory changes and shifts in governmental policy, demand for quality rental properties has never been higher. According to the experts at www.mus.co.uk therefore, there is extraordinary potential for becoming extremely successful as a landlord long-term.
It’s all about making the right moves at the right time – here’s a quick look at 5 essential tips for maximising profits as a landlord:
1 – Charge More, But Don’t Charge Too Much
First and foremost, one of the most common (and indeed effective) tactics when it comes to ensuring your properties remain occupied at all times is to let them out at an exceptionally competitive rate. Which is all well and good, but by ensuring your property is occupied a couple of weeks or months earlier than it otherwise may be, you might well end up losing thousands and thousands of pounds in the long-term.
This is why it is of absolutely critical importance to do as much research and forward planning as necessary to work out exactly how much you should be charging, rather than resorting to desperate measures just to get the place filled. That being said however, you should always make sure that the rent you charge is competitive in accordance with the area of comparable properties around you – all of which make excellent points of reference for how much you should be charging.
2 – Start Working Smarter
If you have more than one property to look after, you may find that you can significantly reduce your workload by investing in a quality rental property management suite. This is the kind of software that not only takes over a wide variety of the more menial administrative jobs you can probably do with avoiding, but will also ensure that you never end up shortchanged having forgotten something important. It’s simply a case of making the very best use of your time and investing in the kind of software that can lighten the load. Even if you have to pay for the software in the first instance, it is an investment that will pay dividends many times over.
3 – Understand Landlord Taxation
There’s really no skipping the fact that when it comes to taxation, landlords have it pretty complicated. From excessive stamp duty to income tax to all manner of deductions and so on, there is quite a lot to take into account and to get to grips with. Nevertheless, research has shown that if you do not get to grips with landlord taxation from top to bottom, it is almost inevitable that you will end up overpaying. And of course, it is not as if the government is likely to get in touch with you in any time and kindly inform you that you have been overpaying – it’s your responsibility to look into things and make sure everything is as it should be.
4 – Target Tenants Wisely
Any successful landlord working anywhere in the world will tell you that above and beyond everything else across the board, there is nothing more important or valuable than excellent tenants. Quality tenants really are worth their weight in gold, but often cannot be found by accident or by rushing the process. Instead, you need to invest as much time and effort as necessary in the process of tracking down the right tenants, which often means working with a quality letting agency. Once again, even if this means investing both time and money in the process, it is time and money very well invested.
5 – Comprehensive Insurance
Last but not least, it’s not necessarily productive to lose a great deal of sleep over the unfortunate accidents and incidents that may occur going forward. But at the same time, emergency repairs and general maintenance costs have a habit of coming well and truly out of nowhere. As such, it’s worth remembering that the more comprehensive and extensive your insurance coverage is, the better protected you will be regardless. There’s really nothing in the world that can take a bigger bite out of your profits than having to reach into your own pocket to remedy an emergency – a scenario that is best avoided at all costs.