Today I welcome a guest post from CIA Landlord Insurance who have come up with some brilliant money saving tips for landlords. Being a landlord is something I have always aspired to do, but never quite had the finances in place to make it happen. I see many friends making a great return and it also means that their investments are well diversified if they have stocks and shares and property
Yes, being a landlord will result in extra money in your pocket but equally, there’s a list as long as your arm of things you’ll be responsible for paying out for. The good news is that there’s plenty of ways to cut certain costs. Intrigued? Read on for 7 top money saving tips for financially-savvy landlords…
- Ditch the letting agent. Spend your time (and not your money) getting to know all the processes and procedures. There’s no reason why you can’t do a letting agents job yourself if you put the work in. If you just don’t have the time or resources then letting agent fees may be a necessary evil – but be sure to shop around for the best letting agent prices, rather than settling for the first you come across.
- Take out landlord insurance. This is a highly effective cost-saving measure. Landlord insurance has the potential to save you enormous sums should anything happen to your property. In saying that, there’s also no use in paying too much monthly on your insurance – especially if you’ve got good tenants who are unlikely to cause any trouble. Take a look at CIA Landlord Insurance, one of the most credible providers around who guarantee that they will not be beaten on price.
- Second hand is best. If you are furnishing your property, it’s a good idea to look into sourcing second hand furniture, as opposed to subjecting yourself to an enormous IKEA trip. Investigate your local charity furniture shops, auctions or use ‘boot sale’ websites, such as Shpock and Gumtree.
- Thoroughly screen your tenants. This tip is arguably one of the most important. It’s undoubtedly the foundations to a smooth tenancy with minimal issues. You’ll thank yourself a million times over for finding the right tenants. Good tenants will pay on time, take care of your property and stay on top of repairs and maintenance. Remember – aside from your property, your tenants are your most valuable asset.
- Regularly assess your mortgage. There could be a better deal for you out there. Think about it – mortgages are typically the biggest expense for landlords. If you can find a deal that offers you a marginally smaller interest rate, you could make instant savings. Simple!
- Don’t delay on resolving maintenance and repair issues. Ignoring these is not a money saving technique. Quite the opposite, in fact. The longer issues remain ignored, the higher the likelihood is of costs escalating. It’s also a good idea to assess any reported issues yourself in person. It could be something super simple that you could fix yourself to save a few pennies – however only attempt this if you’re sure you won’t make it worse!
- Always take a deposit. And put it straight into a tenancy deposit scheme, of course. Yes, there are landlords out there who still neglect to take deposits from their tenants. It’s your financial safety blanket, should your tenant damage or stain anything, for example. You may also want to conduct an inventory and list all the contents of your property, supported by images. This will help to determine what you can and can’t deduct from the deposit at the end of the tenancy, along with distinguishing between damage and fair wear and tear.
This is a collaborative post.