The Cost of Living Crisis: How Landlords Can Protect Their Rental Income
The UK is in a cost-of-living crisis, and it’s having a knock-on effect on landlords in Brixton. More tenants are struggling to pay their rent. Landlords, therefore, are having to take action to protect rental income during these difficult times.
At Your Home Managed, we are experts in property management in Brixton for the rental sector. Here, we bring you our five best tips explaining how can landlords protect their rental income.
1. Always Carry Out Checks on Tenant Affordability
You should ensure that any prospective tenant is able to afford their rental payments. A letting agent in Brixton, like Your Home Managed, will be able to carry out affordability checks on your behalf. This will ensure the applicant has sufficient income to cover the rent.
2. Keep the Rental Property in Good Condition
As times are tough, you’ll want to get as much rental income as you can for your property. The best way to do this is to ensure the property is in excellent condition and appeals to prospective tenants. Threadbare carpets, dated fittings and dirty paintwork are a turn-off for tenants. Remember, that the cost of repairs has increased in the current financial climate, so keeping your property in a good state of repair will help you avoid large repair bills in the future.
3. Carry Out Rent Reviews Regularly
You should review your rents regularly to make sure you’re maximising your investment while avoiding overstretching the affordability of your tenant. In many cases, landlords decide they won’t increase their existing tenants’ rent when they stay in the property for several years. Weigh up whether you are happy to leave the rent as is in return for reliable tenants and on-time payments, or if you can maximise the yield further. Our experienced rental team can discuss your options with you if you are unsure of the best course of action.
4. Take Out Landlord Insurance to Protect Rental Income
It’s possible to protect your rental income as well as your rental property itself should a problem arise in the future. Rental insurance is a cost-effective way to recoup your losses should the worst happen. Problems like fire, flood, and theft, as well as property damage caused by your tenants, can all be covered by a landlord insurance policy. You may even be able to get contingency cover that will protect you against tenants’ non-disclosure.
5. Take Tax Advice
You should always take the time to check that you’re paying the correct tax. Property taxation is a complex subject so seeking out expert advice regarding your tax liability as a landlord is essential if you’re keen to reduce your tax bill by as much as you can.
If you’re considering marketing your property for rent in Brixton, our team at Your Home Managed is on hand to help you find suitable tenants and manage all aspects of your property.