Trying to make a profit out of properties right now is very difficult. Many people are getting out of the landlord game, but with such a demand for properties right now, it could be of benefit for some landlords to start focusing on quality properties, either by downgrading the number of properties or maximising their profit. You could do this by some of the following methods:
Hanging Onto Good Tenants
A good tenant should not stand for high costs in the long run, and when a property is left empty, this could be a disaster for you. If you have good tenants, you need to keep them happy by ensuring that you are dealing with any necessary maintenance. With concerns about the cost of living, now would be the ideal opportunity for you to make their property more user-friendly. This could involve insulating the property with more sturdy materials, such as timber ceiling panels and, very simply, being a very approachable landlord. Many people have a degree of cynicism towards landlords because the cliche is that they are only after money. If you really want to maximise your property, hang on to the people that dwell within.
Remortgage to a Better Rate
Landlords are going through a tough time, and if you’ve had a property for a number of years, you can usually secure a new mortgage 6 months before the end of the fixed term. If you own a number of properties and they are coming up for renewal, it might be time to start looking for the best mortgage rates out there.
Reduce Your Management Costs
One of the biggest costs facing landlords is the overall property management fees. People either work through a managing agent to look after the property for them, or they pay maintenance costs themselves. You can benefit from curtailing some of your expenditure by doing some of the following:
- Getting quotes from several estate agents.
- Look at the services you do or do not need.
- Look at the average costs for landlords in the current climate.
Investing in More Properties
This might seem foolhardy, but there is demand for rental properties because of the ongoing competition for houses. There are many people who are now in a position where they have to move back in with their parents in order to get enough downpayment for a mortgage, but this means there’s money to be made from offering high-quality properties that you can justify making a slight profit on.
Switch to Short-Term Lettings
Some people are caught between a rock and a hard place, but the solution might be in short-term lettings through rental sites like Airbnb. Because short-term letting income is classed as a company instead of an individual income, this can result in higher profits in places. But you’ve got to look at the location and if you can profit from doing this.
So many people start renting properties out as a way to earn a decent income, but so many landlords are finding themselves struggling right now. If you are looking to maximise your profits, some of these components could make a big difference to you.