Being a property owner comes with a lot of responsibility, particularly if you’re renting out your property to a tenant. At Romain Coleman we understand the concerns you’re facing: we only ever represent landlords so you can be sure we’re on your side, and our Property+Plus service can offer support to you as and when you need it.
Having a property to let can dramatically increase your income, but only if you remain vigilant to the changes in the market and implement ways to stay ahead of the game. Here are 5 top tips to help you increase your rental profits:
The short-term letting market is becoming ever more popular in the UK, bolstered by websites such as Airbnb that make it far more accessible than before. It has the potential to be extremely lucrative, considering that in some cases letting prices can be 600% more than standard long-term lets. That is not to say that it is without risks though, as pointed out in this article “Should you consider letting out your property short term”. Wear and tear is a major concern and more frequent repairs may be needed due to people constantly moving in and out. If you can find new tenants quickly enough however, and keep the turnaround time as short as possible, the benefits far outweigh the risks. Here is another article that is useful for finding tenants fast.
Keeping on top of any damages to your property can help you to reduce overall costs. Make sure to regularly inspect your property during a tenancy, as this will help you spot any damages early and allow you to fix them before they become a serious, and more expensive, issue. By fixing problems early on, you can save yourself money in the long run and avoid the difficulties of a property disrepair claim. If you’re letting short-term, a solid reputation will help to bring in tenants fast: reviews of property in bad condition will scare away any potential new tenants before they even walk through the door.
Deciding on how much rent to charge for your property is a balancing act: overcharging will make your property too expensive for potential tenants and cause it to be empty for long periods of time, whereas undercharging can cause you to miss out on an ideal rental income. For short-term lets, it’s important to look at your competition: your price must be competitive within the area, and it may be necessary to adjust it to stay an attractive option to potential tenants. For long-term lets, reviewing the rent once a year can help your income to be in line with inflation. In order for you to do this though, it’s important that you stipulate a rent review clause in the rental agreement.
Managing your day-to-day expenses and taxes is a key part of being a successful landlord. Keep your paperwork in order and save all your receipts and renters bills. Don’t forget that as a landlord you can claim certain expenses that can help to reduce the amount of tax you pay on rental income. Romain Coleman can advise you on the tax relief services that are available to you.
Being aware of any changes to property laws can help you to stay ahead of the game. By keeping yourself up to date with any legal responsibilities, you can ensure that you’re renting out your property legally and are staying protected. Often times rule changes such as the HMO regulation changes will require an updated or different license, and getting a fine for forgetting to update your license will eat into any profit you make. Working with Romain Coleman and signing up to our Property+Plus service can help you to be aware of any changes that occur to property laws.
With these tips in mind, you can go about making the necessary changes to increase your rental profits. Romain Coleman can provide you with specialist landlord legal advice and support, which you can use to prepare yourself and your property for the future.