When renting out your property you need to make sure that in the long run it doesn’t cost you more money than you earn.
With changes to stamp duty on buy-to-let properties and the removal of landlords’ wear and tear allowance being introduced earlier this year, it is more important than ever before that landlords find as many ways as possible to save money, in order to increase the return on their investment.
Some savings, of course, will only prove to be false economies in the long run and so should be avoided, but there are many other potential money savers that shouldn’t be ignored.
Here are three important areas for you to consider.
Getting the best deal with agents
Shopping around to find the best deal possible with lettings agents is the first obvious money saver. Even if you can save just a few hundred pounds a year in this area, surely this is money that would be better off being in your pocket!
You might also want to consider taking care of the property management yourself. This option might not be practical for all landlords as some may have more time and skill than others, but if you can make it work then this could save you a good amount of money in both the short and long term.
Getting the right insurance
While you may initially view landlords insurance to be an expense rather than a money saver, if something we’re to happen to your property and you didn’t have the right type of insurance cover in place, you might quickly change your mind about that!
It’s important, then, that you get the cover that you need, even if it costs that little bit more than a cheaper policy. Another simple way to save money on landlords insurance is to buy online. HomeLet landlords insurance, for example, offer a 15% discount on the premium cost when you get a quote and buy online.
Getting the right tradesmen
Our final area where you can spend or save a lot of money as a landlord is when hiring tradespeople to work on your properties. While you don’t want to overpay by hiring the first company who are able to give you a quote, you also don’t want to go for the cheapest quote either, as you may discover that the tradesmen aren’t up to scratch and you are left having to pay a second builder to do the job properly.
If you personally know any other landlords in your area, then it may be worthwhile asking them if they can recommend anyone good. You could also check out sites like RatedPeople.com to read reviews on tradespeople in your local area. You could also choose to take on some of the tasks that require less skill yourself.
Here we’ve looked at just 3 areas where landlords can save a good amount of money in order to increase their return. Try and remember not to be too stingy, though, as this could end up costing you more money in the long run if you hire the wrong people, or if you don’t protect your investment adequately.