Maximising your profits as a landlord

With house prices on the rise, it is becoming more and more difficult to purchase a home, leading to many opting to the renting procedure. It is your chance now to become a landlord and become rich! Property owners are renowned for their easy earning even whilst they sleep. However, it can be easy to slip up and not be making as much money as you thought you would be!

 One of the biggest faults you could make is not investing into your property. If you have found you’re amazing property in the key location, why would you not uphold its status? It is important to keep up to date with the interior trends, having the best decor that matches your target market. Do your research and find out how to invest into your property to get the best possible return.

Another key part of making money in the property market is using the right people to do the right jobs. Although you may think you can save yourself a bag load of money by doing maintenance jobs by yourself, that might not be the case. It is important to get trained workers to do the job they specialise in. You’re DIY might look good in first instance, but after a few weeks, it could tumble to shame.

Something you want to ensure you’re doing is showing the tenant that you care and appreciate their presence. Giving respect can go along way and can lead to them to taking better care of your property. They will also feel more inclined to let you know about any damaged or breakages that have happened that will be cheaper to deal earlier before it gets worse.

Another key activity to do to keep your profits rising is to proactively rise your rent prices. Small inclines in rent throughout the year will be less noticeable than making big changes in price every 3 years but will still get you more profit in the long run.

If you are investing too much of your time into your property, it could be costing you. Being a landlord is commonly a second form of income and your first would be your more profitable job. Therefore, if you are taking too many hours out of your job to maintain your properties, you could be creating a loss. Make sure you find the right amount of time to do each job.

The final stage I think could be causing your loss is not expanding your portfolio. You as a landlord need to take full advantage of your equity to grow their portfolio and bring in as much money as can be.

If you have any further questions or queries, do not hesitate to contact one of our experts on 0121 655 5188 or email us on letting@glocal-residential.co.uk