With the many issues we are facing today, it has become harder to stay afloat as a landlord in the UK and, indeed, other countries. Money lost from rental income can have a knock-on effect on your life and the lives of tenants. So, here are some simple suggestions to get you through.
Work to Reduce Void Loss
Voids are simply empty properties. And while a property is empty, you will lose money. Keeping a home occupied is one of the challenges of being a landlord, and services such as housing associations face this all the time. Of course, you can maximise rent with HMOs. But this comes with many challenges and a stigma. Multi-unit freeholds, however, come with a range of benefits that HMOs don’t. They are more attractive self-contained units within the same property.
Make Tenants Feel Appreciated
It can be scary for tenants to have the big bad landlord knocking on the door, only coming for money. You never really know someone’s financial situation or their personal physical and mental health. Tenants should never feel pressured into something, and it will help if you go out of your way to make them feel appreciated. Building solid relationships with tenants will help things go smoother if there are bumps in the road. The problem may be sorted with support.
Stay Afloat as a Landlord with Backup Funds
You never really know what will happen or when. When you invest in residential property, it is likely you will face tenants who cannot pay. And this means you might have to use your own money while you work with them on a solution. UK landlords have between 6 and 12 properties on average. This is useful if one tenant falls behind. But what if you rely on one or two? This can cause issues. It is a good idea to build an emergency fund you can use to cover non-payment.
Work Within the Law
Tenants have to agree to specific regulations when they sign a tenancy agreement. As a landlord, you also must abide by the law. Threatening tenants or being abusive because of non-payment of rent will only make things worse. The law is on your side if a tenant has breached an agreement, and there are services that you can use for rent reporting if the tenant has missed several payments. So, stay within the parameters of the law. Breaking the law as a case moves forward will only end up dragging it out further and eventually cost you more money.
Keep Your Properties Maintained
No one wants to live in squalor. Unfortunately, we see too much of this, even in the UK. Damp, mould and condensation are major issues because they are deadly. Keeping properties well maintained reduces costs down the line, develops a good reputation and keeps customers happy. It also means you won’t have to deal with heavy fines. This will work to reduce how much you will have to pay out. Just ask yourself if you would be happy living in the property yourself!
Summary
Reducing void loss by maximising tenant occupancy with self-contained units will help you stay afloat as a landlord. Developing an emergency fund will also come in handy when a tenant misses a rent payment. Property maintenance keeps tenants for longer and avoids fines.
