Most landlords enter the profession as a means of supplementing their existing wealth or income. The primary goal is to turn a profit, which means that making money is your central aim.
Earning a large amount of capital is only one facet, however. The greater the margin between your overheads and turnover, the more money you’ll make, which means that it pays to keep costs as low as possible.
This doesn’t have to mean cutting corners. There are lots of ways to save money; it simply requires a little time and research to discover them. Unfortunately, many landlords are working around an existing full-time job, and this can leave room for little else. That’s why we’ve formulated these three top money saving tips to help you out…
Tip #1: Choose the Right Insurance
As a landlord, it’s vital to take out proper landlord insurance, like the cover available from HomeLet. This serves a number of purposes.
Firstly, it could save you an awful lot of money if disaster strikes. Normal property insurance will not cover you, which could leave you with hefty rebuilding or refurnishing bills if things go wrong.
Secondly, the right, well-researched insurance will save you from paying over the odds. There are plenty of suitable providers out there, so choosing the first one you come across is a bad idea. Instead, if you take the time to do your homework, you’ll find a provider offering cover that’s both cost-effective and comprehensive.
Tip #2: Research Your Advertising Options
Another area where you can save money is by exploring your advertising options. Agents have their purposes, but they’re not the only way that you can find tenants. It is possible to cut out the middleman, and their associated costs, and find people to rent your property all by yourself. However, even if you don’t have the time or the skills that you feel are necessary, it still pays to explore your options; online agents, for example, are often much more economical than their traditional counterparts.
Tip #3: Don’t Forget Credit Checks
A third rule to abide by is never to bypass credit checks. Credit checks are incredibly important when it comes to assessing potential tenants. Anyone can say the right things, so carrying out the proper evaluations is a much more effective way of finding tenants that are reliable, trustworthy and will always pay on time. ‘How does this help me to save money?’ you might be wondering. The answer is simple: dependable tenants mean that you won’t find yourself paying out for damage to your property or furnishings, or covering the mortgage repayments when you’ve been left in the lurch with three months unpaid rent, a little further down the line.
How will you choose to cut your costs?