The Reality Behind Rental Property False Economies
In this two-minute read, we look at the false economies many landlords are making regarding their rental properties.
Many of us realise doing a bit of DIY can save you money. But it comes with a caveat that you must know what you’re doing first.
For every successful bit of hallway decorating, there are dozens of tales of lopsided shelves, incorrectly fitted taps, and a whole host of other DIY disasters and fails.
And this risky approach doesn’t just apply to home DIY – we often see it when a landlord tries to do everything themselves.
Here are five of the most common mistakes landlords make when they think about the pennies but take their eyes off the pounds.
1) Marketing matters – There’s much more to marketing a rental than simply slapping it on Facebook or Gumtree and hoping for the best. It’s nigh on impossible to achieve a property’s optimum rent by using this approach.
2) Poorly referenced tenants – An excellent letting agent will carry out all the proper referencing needed to ensure you get a good, reliable tenant. Skipping this process and ‘going with your gut instinct’ can be hugely expensive further down the line if the tenancy turns troublesome.
3) Maintenance mistakes – The most significant error landlords make when it comes to maintenance is not having money set aside in their budget to keep their property in good condition. A general rule of thumb is to put away £100-150 per month towards maintenance and general upkeep.
4) Cheap is not cheerful – Many landlords make false economies by scrimping on things like flooring, windows, and taps and fittings, only to have to replace them more quickly than they would have if they invested a little more in the first place.
5) Temperamental tradespeople – The nightmare scenario for many landlords. A call comes in on a Sunday evening (usually when you’re on holiday) from a tenant telling you the boiler has packed up. DIY landlords often rely on their own trade contacts in this situation, which can be great but is often not. However, a good letting agency has access to a pool of tried and trusted tradespeople who fix things fast and professionally.
Of course, we understand that you want to get the best possible returns from your rental investment. But experience has taught us that using a letting agent to find tenants and manage your property is money well spent.
We’d be delighted to offer a free review of your rental property/properties and highlight where you can save money but also protect your assets.
Give us a call on (01953) 453838 or drop us an e-mail to lettings@millbanks.com