9 Ways For Landlords To Save Money (While Still Being A Good Landlord)
Fri 10 May 2019
Who doesn’t like to save money where possible? While the UK economy picked up in the first 3 months of 2019,
people are still feeling the pinch and looking for ways to reduce outgoings, so I’ve compiled a handy list for landlords that could save you some money.
The UK economy’s growth was 0.5% in the first quarter of 2019, up from 0.2% in the previous three months.
Source – Office for National Statistics
In no particular order my list is a result of Moginie James’ experience at the forefront of Cardiff’s lettings market and we have found that each one can save property owners money, while continuing to be a great landlord to their tenants.
Choose The Right Agent
A property is often a person’s most valuable asset, and the choice of an estate agent to market and manage your property
plays a crucial role in ensuring you rent your property for the best price, within the timescale you require and perhaps most importantly, to the right tenant(s).
Read our guide to ‘Choosing The Right Agent’, although written with property sales in mind the vast majority of information and advice provided applies similarly to landlords and rentals.
Lastly, don’t forget to check an agent’s full list of fees before instructing them, after all you don’t want to get stung by any extra charges you weren’t expecting!
Check Your Mortgage
Being on the right deal for you could save you hundreds if not thousands of pounds, so check you are on the best deal you can currently get.
We normally recommend undertaking a property portfolio review with an independent mortgage advisor who can assess a far wider range of products than a traditional lender or bank can.
Give Rob Isles, Mortgage Advisor MAB, a call to discuss your mortgage options.
Reduce Rent Void Periods
Void periods are the biggest concern for many landlords, with this in mind we have recently intorduced 'Zero Deposits' which helps tenants reduce the upfront cost of renting, which can help speed up the process (by up to 26%!) and consquently reduce void periods.
Landlords additionally benefit from a Zero Deposit Guarantee which provides the same cover as a six week tenancy deposit and is underwritten by Great Lakes Insurance SE. To find out more about the potential advantages of offering Zero Deposits on your property read here.
Recent industry reports show that 50% of tenants will have rent arrears at some point during their tenancy and that 26% of landlords could not afford to pay their mortgage if the rent was late by more than 5 days. These statistics led us to seek the most water-tight rent guarantee policy on the market.
With this in mind, we have now introduced our new Payday service (included as standard in our 12.5% ex VAT [15% inc. VAT] Management fee), a Rent Guarantee* and Legal Expenses* policy with the additional perk of making sure your rent is paid on time, and in full, every month, without fail.
· We will collect the rent from your tenants and pay the rent to you even if the tenant is late in paying.
· If the tenant breaches the tenancy agreement we will cover the legal costs of eviction
· If the tenant damages the property we will pay 50% of the rent for three months after vacant possession.
With such a vast amount of constantly changing legislation to stay on top of, the surest way to ensure that as a landlord you comply with all relevant regulations and don’t get fined by the local authorities is to choose an that agency takes compliance VERY seriously (which unfortunately, is all too often not the case!).
Follow Moginie James on our social channels for up-to-date, expert property information and advice.
Don’t Overspend on Furnishings Or The Garden
It is important to remember that your rental property is not your home as it is extremely easy to overspend on furnishings that aren’t required or potentially even wanted by tenants.
The same can be said for any outside areas, while an elaborate landscape can look gorgeous they also require maintenance which many tenants do not want to be responsible for.
For advice on what furnishings tenants look for give one of Moginie James offices a call:
Don’t Always Go For The Cheapest Option
We’ve just told you not to overspend, now we’re telling you not to underspend!
In all seriousness though, while you don’t want to overspend, especially on furnishings that won’t further the appeal of your property, you also don’t want to underspend on certain issues or items, such as white goods.
For example, we typically recommend investing in a fridge freezer rather than a fridge with a small ice-box area, as this is a common turn-off for tenants and for a little extra you can get a lot more for your money.
Use Trusted Tradesmen
Finding a reliable and trustworthy tradesman can be a daunting task, so we’ve done it for you.
We have a list of dependable contractors that have worked on our landlord’s properties previously that we can recommend for any work you need taking care of to give you peace of mind that you are in safe hands.
Replacing Windows and Carpets
Landlords often turn to us for experienced advice (which we are always more than happy to give!) and we regularly get asked for our input when replacing windows or carpets.
In general, when replacing windows for properties we’ll advise that UPVC represents a better investment than timber due to their durability
– although a quaint old cottage with beautiful traditional features would perhaps not fall into this category due to the potential aesthetic affect –
while we always recommend not going for a cheap carpet if possible.
Cheap carpets typically turn renters off as they look unattractive and feel bad underfoot, while they also wear quicker, meaning you have to replace them sooner.
Carpets are generally a good example of where spending a little extra initially can save you money in the long run.
Hand Over The Stress
Using a property management agent is another good example where spending extra can actually turn out to be a fantastic money saving tip, as well as saving you a lot of time and stress.
Going it alone may seem prudent, however in our experience, handing the tasks associated with being a landlord over to a knowledgeable and experienced local estate agent
will save you money in the long run. For more information on why we think you should let us manage your property read our landlord guide.
Thanks for reading, if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.
Ted James, Head of PR (Pet Relations)
Want to get a SOLD or LET sign outside your property quicker?
Call our team on 02920 730887 or email: firstname.lastname@example.org for honest, expert and friendly advice.
MOGINIE JAMES - VOTED NO.1 LETTINGS AGENT IN WALES BY THE BRITISH PROPERTY AWARDS 2018-2019