Renting out a property can be expensive and there are many factors you need to 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 reduce unavoidable costs when renting out your property. We’ve identified just a few:
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 district or visiting local estate agencies, you can get an idea of the current market rents. This will also give you an idea as to how much profit you can expect to receive after other costs on the property are factored in. Local estate and letting agents so have local knowledge can be best placed for the most up-to-date valuations.
It might sound obvious, but one of the top ways to reduce costs when renting out your property is to find reliable tenants from the outset. The cost of marketing property, and having an empty property not generating income, can quickly mount up. So try and match your property to the right tenant who will stay in the property long term. You can do this in a number of ways. You can place your property in the care of a local estate agency for example, but this can be the more costly option, but they will take care of tenant referencing, property checks, rent collections and maintenance issues. Or you could use an online estate agency to find your tenant.
Online estate agencies
Using an online estate agency often works out less expensive than a high street agency. It also means you potentially have access to a 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 one all-inclusive fee, which is useful if you are considering managing your property yourself.
If your property requires repairs, another cost saving tip is to shop around 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 and client references, on a trader reference site. It might just be that the cheaper quote could work out more expensive for you in the long run.
Getting the right financial advice is another way to reduce costs when renting. A qualified accountant might be able to show you how to offset any repair costs, or regular outgoings, on your property against your tax liabilities, for example.
Try property management software
Property management software has taken much of the hard work out of managing a property. Now widely used by many estate agencies, through these apps, letting agents can be in direct contact with a tenant, take photographs of a property, record inventories, manage repairs and make appointments with professional tradespeople too. So if you are managing a property yourself, why not download our app onto your smartphone or tablet, and reduce those agency fees.
There are many ways to reduce costs when renting out your property. These were just a few suggestions but by trying a few of them, you might find that you can save on regular outgoings, which could potentially lead to higher net income from your rental property.