Are you a landlord wondering how to navigate the current economic landscape without simply hiking up the rent? At Turnkey London, we understand the challenges that landlords face and offer the following advice to protect your investments and maintain your rental property.
Firstly, we advise landlords to consider both their long-term and short-term options to beat inflation. Despite forecasts predicting that inflation will lower in the second half of 2023, the economy is volatile and it is important to be prepared for further rises or a period of sustained higher costs when compared to the relatively low rates following the financial crisis in 2008.
Explore Mortgage Options
One way to beat inflation is to regularly shop around for mortgage lenders and identify if it is worth switching lenders for a better rate. There are many benefits of switching, particularly if you have been on the same deal for a number of years, you may find your current deal isn’t competitive and that you can in fact get a better interest rate. Or perhaps you want to overpay to clear your mortgage quicker and your current lender won’t let you do this without paying a hefty penalty.
Focus on property maintenance
In the short term, there are some easy steps landlords can take to manage rising inflation which will benefit them in the long run. Inspecting your rented property regularly, if you’re not doing so already, will mean that you can pick up on small problems before they become bigger and more costly. If the problems are caused by tenant activity, landlords then have the opportunity to give advice and ensure that the property is properly maintained.
It might otherwise be tempting to cut back on maintenance costs as you’re not living in the property yourself, but there are some valid reasons to keep on top of maintenance with inflation in mind. If your tenants leave, you will need to re-let quickly at the best possible market rent. Regular repairs and periodical renovations will help protect and potentially improve the capital value of your investment – this can help you re-mortgage at lower loan-to-values (LTVs). Additionally, if you have spent time maintaining the property, then your tenants will be more likely to respect and do their own maintenance whilst in the property with your approval.
Shop around for better prices
We also advise landlords to consider getting a range of quotes for maintenance costs in order to find the cheapest quote for the task. If you do find a cost-effective tradesperson then it’s a good idea to check the reviews to make sure the quotes aren’t too good to be true. Trusted and reliable tradespeople are worth their weight in gold.
Consider getting additional insurance
Another option to protect your rental property against the tenant’s failure to pay is to consider getting rent and legal protection insurance. There are some really good policies that help to reduce the risk and exposure that the current economic climate brings to landlords. It is important to note that as with any insurance the policy needs to be in place before any arrears begin.
At Turnkey London, we understand that navigating the current economic landscape can be challenging for landlords. That’s why we provide a full management service that guarantees vetted tradespeople with valid insurance and certification will carry out the work required and remove the time and hassle of arranging it all from the landlord.
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