Renting out your property can be quite expensive and sometimes it can feel overwhelming with what can seem like a ‘trillion factors’ you need to manage and consider, from finding the right agency and tenant to keeping the property in a good state of repair. But there are some simple ways in which you can keep a grip on your finances and stop them from being a ‘runaway train’ of expense when renting out your property. Here are our top 5 ways to reduce costs.
The Right Rent
Make sure you market your property at the right level for the locality. Just by searching online for comparable properties in the same area, or by visiting local letting agencies, you can get an idea of the current market value of your property and what local rents really look like. This will also give you an idea as to how much cost vs profit you need to plan for and could realise after all other costs are factored in.
The Right Tenants
It might sound obvious, but one of the top ways to reduce costs when renting out your property is to find the most suitable and reliable tenants from the outset. The costs involved in marketing the property, and then having it lay empty – not generating income – can quickly mount up. So try and match your property to the right tenant, first time, who will (hopefully) stay in the property long term.
How can you achieve this? Well there are a number of ways. You can place your property in the care of a local expert; a letting agency or property manager to take over the marketing and referencing. Knowledgeable in their field – they are incentivized to find the right tenants for you as then they can manage the property in the longer term which creates a constant income for them/their business. If going down the DIY route; use an online referencing service to make sure you are compliant (Right to Rent) or invest a small fee with a ‘tenant only find service’ to match you with your ideal tenant.
The Right Agents
Using an online letting agent can work out less expensive than a high street agency. It also means you can (potentially) have access to a much wider rental market for your property when first advertised. You can also use your online agency to find the right tenant and take care of all the initial referencing checks for a one off all-inclusive fee, which is cost effective if you are considering managing your property yourself.
The Right Services
If your property requires repairs, another cost saving tip is to cast your net wide for quotes. So if the boiler has broken down, for example, or there’s a blocked drain or broken window, don’t agree to the first quote your agency sends you. Try to obtain at least three quotations for the repair work and compare them. Then do some research on who will be completing the repair work by checking their industry credentials, client references, reviews on a trader reference site and mostly importantly their qualifications. There are a lot of services that appear more than they are so always ask for written quotes, insurance details and details of their complaints process. Although it might be the cheaper quote you opt for, it could work out to be a lot more expensive for you in the long run if they don’t carry out the work correctly or safely.
The Right Advice
There is no substitute for getting the right financial advice when thinking about renting your property. The right advisor can help you to reduce costs when renting out the property or portfolio. A qualified accountant will be able to advise you how to offset repair costs, manage better any regular outgoings, advise on tax liabilities and keep you on the good side of HMRC.
The Right Property Software
Property management software nowadays is so full of options and have been developed to such a great degree that you can practically carry out all the activities involved in renting out a property, online, 24/7. Through these apps, letting agents and landlords can connect virtually with the tenant, connect with suppliers and manage maintenance requests and repairs. All from your smartphone, tablet or your desktop.
The Right Reporting App
Deposit disputes are on the increase so evidence is vital if you want to protect your property and be in with a chance of accessing the deposit should the tenancy not go as planned. No more faffing around with paper, InventoryBase inventory app enables professional inventory providers to compile comprehensive reports on your behalf with time, date embedded quality photographs and customisable actions that enable you to manage the whole reporting process online. No more having to print out costly inventory and check out reports – everything can be shared, commented and signed at the touch of a button.
These are just 7 ways to reduce costs when renting out your property. Even if you only employ one or two, you could find that you save not just money but valuable time that could be better spent on increasing your portfolio or having a better work life balance.
Time is literally money – so don’t waste it on outdated, cumbersome and costly practices; get a demo of InventoryBase today.