Financial uncertainty in 2016 has directly affected both landlords and tenants. Now, perhaps more than ever, it’s essential for both buy-to-let landlords and their tenants to be frugal, cost-effective and meticulous with their spending.
Whilst there is still money to be made within the industry, certain legislation introduced this year has seen landlords stung with a 3% surcharge on stamp duty, meaning costs need to be brought down elsewhere. Take a look at our top financial tips to rein back in the spending without compromising your tenant’s housing experience.
If you’re yet to buy, or looking to expand your properties, there’s no doubt that location should be your first priority when checking the markets. Finding out which places are ‘up-and-coming’ and can be bought at a lower price now, with a high ROI in the future, is a no-brainer. If you’re looking to get in a specific tenant in— ie. students, families, business owners, locational research needs to be at the forefront of your planning.
In the case of landlords, normal housing insurance simply isn’t enough to ensure peace of mind or sufficient coverage. Finding a specific and tailormade landlord’s insurance to suit you, your property and your tenant arrangements is something you’d be foolish to pass up. Landlord insurance from HomeLet not only covers the basics but even offers a Prestige Rent Guarantee. This ensures that if your tenants are unable to pay their rent, you will still receive the money you are owed and won’t suffer an unexpected loss of income.
Furnishing your property is something which is easy to save costs on, but buying cheap and ineffective furniture will only come back to bite you. Investing in high-quality and long-lasting interiors is not only financially efficient in the long run, but will save you a lot of time and effort. Our top tip is for landlords is to swap carpets for laminate flooring, not only is this cleaner but will save on cleaning costs.
Landlords aren’t the only ones feeling the pinch this year, with rental increases taking hold in every major city across the UK, tenants need to be as savvy as their landlords when it comes to their investments. Our three top tips are a foolproof and an easy way to avoid unnecessary financial losses.
When you enter your new rental property, ask your landlord to provide an inventory, or alternatively make a detailed one yourself. List everything in the property and its working condition, that way you know at the end of your lease you have evidence for to back up any claims or losses to contents and cannot lose out on your deposit. Our top tip is to take photographs of the property on your arrival, especially if you’re dealing with a private letting.
2. Contents Insurance
It’s a common misconception that your landlord is responsible for all the insurance on the property. If the property is already furnished it’s likely that your landlord has contents/damages insurance included in their Landlord’s insurance, however this does not mean your possessions are covered. Getting contents insurance to cover any expensive items such as laptops and cameras, etc, is the quickest and most effective way to prepare for any unforeseen unfortunate circumstances.
Be upfront and ask your landlord what rights you have to receive your deposit back at the end of your lease and the clauses or stipulations that need to be met. To avoid any legal disputes, ensure that your landlord is part of a tenancy protection scheme, and what this covers in regards to your deposit.