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Easy Ways To Maximise Your Profit As A Landlord

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Easy Ways To Maximise Your Profit As A Landlord

A lot of the time being a landlord can be more stress than it is worth, especially if you are barely making even or even operating at a loss. That’s when you can very quickly find yourself wondering what on earth you are doing. That’s not the only reason many landlords are beginning to struggle either. Vacancy rates are increasing and more people are buying than they were after the economic crash, which has had an affect on the supply.

But despite all of this, you don’t need to start panicking just yet. The reason being there are some tips and tricks in which landlords can maximize the profit they make from their rented properties. You could even turn it into a viable business. And that is exactly what we are going to tell you about right now, how to maximize your money:

More But Not Too Much More

Increasing the amount of rent you charge is a delicate balancing act. If you undercut the market then, yes, you’ll fill your property faster and have less vacant time to worry about, but you could be missing out on thousands of bucks a year. Think about it. Just £85 more a month equates to over a £1000 a year. As such, what you need to is work out your cost is against your revenue and go from there. In terms of what can help you raise the rental amount, location and refurbishments are still the big winners.

Be Smart And Go Solo

It is almost impossible to make a great deal of profit – if any – by having a letting agent manage your property. They just always charge a hefty fee. But if you are to go solo you need to be smart and pick your battles. There may be certain tasks you can take on yourself, but where a plumber or an electrician is required, we recommend you go with someone who knows what they are doing, like Bailey Pollock electricians. As for dealing with the most stressful parts of being a landlord – screening, and payments – there are platforms which can make your life easier, namely Cozy. Screening made easier and rent payment made automatic.

Tax Breaks Make Better Profit

The more you can reduce your taxable profits the more you can reduce your tax bill and thus the more money you can keep for yourself. It is a simple way of putting it but that’s exactly how it works. Things like maintenance and repair costs, mortgage interests, insurance, travel, contractors, the costs of your home office and the costs incurred when buying can all be used to reduce your tax bill.

Find The Perfect Tenant And Keep Them

There are so many benefits to be had from finding and keeping the right tenant. Not only will they be willing to pay your higher rates of rent, they will also be less likely to leave your property and that means you’ll save on all those costs that are associated with having a vacant property and finding new tenants. As such, we recommend you find out what your perfect tenants want and then you give it to them. If it is the chance to make it their own home with decor and pictures then allow them. If they would love some new fixtures or fittings, then make that sacrifice. Never presume you know what they want, though. A professional in their twenties will want different things to a retired couple with children.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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