While becoming a landlord is fairly straightforward, being a good landlord to your tenants isn’t so easy. Because of the property tax changes that have occurred in recent years, landlords are starting to sell up. Profitability is everything, so whether you’re looking to cut landlord costs to save money or boost rental yields, here are five easy strategies to take.
Only Accept Good Tenants
One of the best strategies to take in keeping landlord costs down is to find good tenants for your property. Finding tenants who are trustworthy and reliable will give you peace of mind and ensure that your property is being well looked after. A bad tenant can cause severe damage to your rental property, not to mention avoid paying rent. No landlord wants to go through the eviction process, so carefully screening your tenants is key.
Ditch Letting Agents
While the purpose of a letting agent is to save you both time and hassle of finding the right tenant for your property, their fees can be extortionate. One of the best ways to reduce landlord costs is by downgrading the service that you use from them. For instance, you could work with a letting agent to screen the right tenants, and then complete the property management on your own. There are letting agents that provide a wide range of services for a good price, including credit checks and collecting rent.
Find the Best Insurance Policy
It’s important that you choose a suitable policy that is designed to protect your investment. There are websites like Quotezone that can help you compare a range of landlord insurance providers to help you find the best policy. Landlord insurance will cover you against unpredictable events such as fire, flood, or vandalism. Quotezone’s website also outlines extra features that you can add to your policy, such as rent guarantee insurance and loss of rent insurance. Finding the cheapest policy available will help in keeping costs down.
Review Your Portfolio
You need to ensure that you’re getting a good rental yield in order to create a successful buy-to-let portfolio. Keeping a close look eye on locations where rental yields are on the up will help you find the best properties for affordable prices. Some of the best ways to boost rental yields are by raising the rent, reviewing your mortgage, and investing in low maintenance properties.
Invest in Your Property
As a landlord, it’s only natural that you will want to get the best rental price for your property. In order to charge what you like, you need to invest in your property to get it in working order. Whether you do this by decorating internally, removing or renewing carpets, doing a kitchen renovation, or installing mod cons, showing that you care about your property will not only help you attract the right tenants, but it will boost the value of your property, allowing you to charge a higher rental price.
If you go about it the right way, being a landlord can be highly lucrative. To reduce your overall costs and boost rental yields, all the advice above needs to be taken into consideration.