Contrary to popular belief, it has become harder than ever for landlords to make viable returns from property. Sure, it can be done – but rules have been changed, and there are certainly more hoops to jump through.
Getting higher rents for longer periods should be focused upon more than ever before. We will lay out some tips on how you can do this and boost your rental property income through today’s article.
Keeping good tenants is half of the battle
One of the main ways landlords lose out on their rentals is by having a high churn of tenants. In other words, they come and go – leaving voids where no rent is being collected. The lack of rent isn’t necessarily the biggest problem here; it’s everything in-between as well. For example, you’ll generally have to pay a local agent to find your next tenant, while you’ll also have to pay to repair any issues that may need resolving. Granted, deposits can sometimes cover these, but you’ll also have to dig into your own pocket more often than not.
Bearing this in mind, you need to make every effort to find good tenants and then make sure you keep them.
Concerning the former, this should involve an extensive background check to see if they really are in this for the long haul. On some occasions, you might not have a choice, but with the property market being as fast-paced as it currently is, you’ll generally have a queue of tenants, and it’s up to you to pick the right one.
Then, when it comes to keeping them, this is all about being a good landlord. Ensure you respond promptly to any repairs that need work and don’t always choose the ‘cheapest’ solution. Yes, becoming a landlord is getting more expensive, but you also have a responsibility to look after your tenants. If you do this, you’ll boost the chances of them staying for the long term.
Think long and hard about the furnished vs unfurnished conundrum
There’s no right answer to letting out a property as furnished or unfurnished – it just depends on your area. The furnished option will always win if you are in a student area. If you are letting to families, the opposite will occur.
Think long and hard about what is best for your rental business and think beyond the initial costs. Even if you’re concerned about potential damage to your furniture, you can have the appropriate insurance in place to cover you. Like with everything we have discussed today – it’s all about the long-term view.
Take a long-term approach with repairs
As we have already alluded to, it can become easy to implement ‘quick fixes’ in a bid to reap better returns.
However, this is not a sustainable option in the long term. While some issues will need a quick, cheap repair, on others, you are masking a bigger problem that will cost you money in the future. For each repair you face, question if it might be more cost-effective to sort it once and for all rather than take a bit-by-bit approach.
