As a landlord, maintaining the profitability of your letting operation is not always easy.
As a general rule, it implies both maximising your income and keeping the tightest possible control over your costs – and at Cover4LetProperty we will always be happy to help with landlord insurance advice to try and keep that particular cost line as tight as possible.
Here are a few other ideas that you may find useful though:
- nothing is more expensive than rental arrears and eviction processes. So, make sure that you take all necessary steps to try and identify potential problem tenants in advance during your interviews;
- consider using a property management agency. Sometimes, although this might add cost to you operation, it might result in increased overall efficiency and thereby cost savings. Do your maths carefully though;
- avoid furnishing properties with highly fragile items or those that may be subject to rapid deterioration due to normal wear and tear. You can’t automatically blame your tenants for problems in this area and assume that they will pay up;
- make sure that any landlords contents and furnishings are covered by your insurance policy. Remember that certain categories of item, perhaps including electronic devices and TVs, may not be, as standard;
- make a point of regularly reviewing the costs of any utilities and services you are paying for – such as telecoms providers, internet service providers, electricity companies and so on;
- think about a maintenance-type contract through a local builder. Of course, you may be able to do a lot yourself on a DIY basis but having an established relationship with a reliable builder might be a lot more cost-effective than ringing around trying to find one at random in an emergency;
- employ a good accountant. It may be that this isn’t an actual accounting requirement depending upon your exact business status but even if it isn’t, a good accountant might be able to save you significant amounts of money on your taxes and other expenses each year;
- speak to your bank about various forms of business account. Make sure you compare what they are offering you in terms of facilities and prices, against those of their competition
- don’t ignore out of pocket expenses. Spending a few pounds here and there without taking it into account in overall business terms can be a serious mistake, as these small expenditure items can mount up to serious totals throughout the year as a whole.