Are you a Landlord? Want to know how to increase your profit in 2023?
Experiencing higher mortgage rates? Tenants leaving? Void periods? Excessive maintenance issues? Want to know how to combat these issues and increase your profits in 2023? Then keep reading.
It's a worrying time for a lot of landlords at the moment with costs increasing and the concern of lower profits driving some landlords to exit the private rental sector. With that in mind, here are a few steps you can take to ensure you increase your profit in 2023.
Rent Review
Probably the most obvious change you can make. With rents having increased rapidly in the last 18 months, it's worth seeing how your rent received compares to current market value.
Tip: Remember, the highest rent isn't always worth it if the tenant you have looks after your property, reports maintenance on time and is generally an excellent tenant.
Make improvements
You may be thinking, this sounds counterproductive, but making improvements such as updating the decor or modernising the garden, adding a driveway for example, may be a small investment initially, but it will increase the value & desirability of the property and help you see a better return on your monthly rent. It could also see an increase in the equity in your home, which could be used to acquire another investment.
Maintain a good relationship with your tenant
Maintaining a good relationship with your tenant can ensure that not only will the tenant be more inclined to look after the property, but would be more likely to stay longer - reducing void periods, tenant find fees and additional maintenance costs.
You can start your relationship off on a positive with a housewarming gift & leaving a guide to the property. You should also ensure any maintenance issues are resolved quickly.
Be pet friendly
There are lots of people now who are looking to rent with a pet. It isn’t an ideal situation for all landlords, but if you don’t mind having a cat or dog in your rental property, then make sure that this is known. Not only will you be likely to appeal to a brand new pool of tenants but you may find that they are inclined to stay longer. There is a slight risk of additional wear and tear when renting to pet owners, however, this can be mitigated with a slightly higher rent & obtaining a Pet CV for info on breed, age, flea treatments & photos of current residence to show how it's being kept for example.
Don't 'fix' maintenance issues cheaply
I have personally witnessed landlords spend a small fortune on 'repairing' an issue, which reoccurs again and again. Instead of paying one call out fee and fixing the issue properly, trying to save money by doing the 'repair' as cheaply as possible - which in the long run has cost them much more in monetary terms and leads to a relationship break down with your tenant resulting in them leaving early and additional tenant find fees.
Tip: Get the problem fixed properly and fix it once - therefore costing you less in the long run & saving you from losing your tenant, void periods & re-let fees.
Use a Letting Agent
Using a letting agent can seem like an added expense and is often overlooked by many landlords who feel they can manage it themselves, however here are the key benefits:
- Letting agent fees are tax deductible
- A letting agent will help you navigate through the many laws and ever changing legislation.
- A letting agent can help manage tenant expectations and remove emotional decisions - therefore improving your relationship and retaining tenants for longer.
- A letting agent will ensure you keep up with market trends & rental values.
- A great letting agent will ensure your property is marketed excellently - therefore attracting the very best tenants to choose from.
Have any questions or anything to add?
Contact us:
020 8935 5256
Lettings@thepropertycloud.uk