If you are looking to take your first steps toward becoming a successful landlord, then we have some top tips for you. Along with some of the top estate agents in Chelmsford, we have put together a list of some simple ways to make money from your rental property and start earning a guaranteed, regular income.
Find good tenants and keep them happy
It may sound obvious, but if you want to ensure that you make a steady and regular rental income from your rental property then you must find high-quality tenants. If you are conducting the viewings yourself then take time to speak to any potential tenants and discuss the lease agreement in detail with them. You could find out whether they have pets, and whether this fits with your tenancy agreement terms. Think about how you see your property being best utilised, is this better for a working couple or a family?
If an estate agent is managing your lettings for you then you should provide them with a list of requirements. If you have things that they should ask prospective tenants, or things to look out for, then don’t be afraid to make this clear.
Once you have found good tenants who pay their rent on time and look after your property, you’ll want to keep them! Staying ahead of any requested property or appliance maintenance could help to ensure that everyone remains happy.
Utilise additional services
If there is the option to utilise additional services and make a little extra income on top, then this is worth considering. For example, can you provide monthly gardening services, additional parking or building maintenance? All of these things could bring the potential to charge extra.
Use collateral to keep purchasing
If you plan on investing in multiple properties, then utilising your collateral to purchase more buy-to-let properties is helpful. Once you become a property owner, you can then use this property to purchase more properties. The more times you repeat this process, the more money you stand to make over time. In order to maximise your ROI, you must look to keep your mortgage balances as low as you possibly can. Building up more equity in your properties will dramatically increase your profits in the long-run.
Hire a property manager or do it yourself?
The next thing to consider is whether you need to hire a property manager to maintain your portfolio of properties, or whether you have the time to do this yourself. If you can, managing your own properties could generate you more profit. Reducing the need to hire additional staff will keep outgoings down. However, this may not always be possible if you work long hours in another business or have an already hectic work schedule. Weigh up the pros and cons to see what works best for you and how you can generate the best profit margins.
Don’t be scared to ask your local estate agents and letting agents for advice. Most will be able to provide you with a good view of the current rental market and offer helpful solutions.