Choosing to buy a rental property in an area where tenant demand is high and vacancies are low is one way for landlords to increase their investment property’s likely income, but once the purchase is made, there are other ways to maximise its value.
I know it’s going to sound like we’re stating the obvious (which we are!) but what we’ve found is that the better maintained the property is, the less chance there will be of a tenant doing the wrong thing. This means attending to repairs quickly and refreshing the property every couple of years between tenancies, so it stays in tip-top condition and your investment property can attract the best type of tenants. It sounds easy, but we see landlords simply not care about their property far more than those who keep it up as if they lived there themselves.
Also it’s worth keeping on top of how the rental prices are going in the area around your investment property, and you can do that through online sites like Zoopla and Rightmove. Just keeping your finger on what’s currently happening in the market may help.
Having a good relationship with a property manager can be a key factor, because they may be able to investigate a tenant’s background using referencing systems and databases they already have in place.
If a landlord chooses to manage their property on their own, we strongly recommend they do as many background checks as they can, particularly by asking the tenant’s previous landlord or property manager if that information is available. It also makes sense to check with a prospective tenant’s employer to make sure they are actually making the amount of money they claim on their application form.
Insurance is a way of guarding against loss on an investment property, and protection against the most common risks and yet, again, we know of a number of full-time, professional landlords that, against our better advice, don’t have insurance against their property. (NB: Key Property will not manage a property for any landlord unless there is proper insurance in place, it’s a promise to both our landlords and our tenants!)
Apart from obvious risks like loss of rent and damage to your investment property, there are other risks landlords should consider which may not be covered under a standard building insurance policy.
For example, a landlord might have previously lived in a home, moved out, and decided to put it up for rent. They probably have an owner-occupier policy, but may not realise their previous policy is unlikely to cover the building when it’s rented. We’ve had that happen a couple of times, and were able to give the right advice and put our clients in touch with the right people.
Along with cover for damage and loss of rent, most good Landlord policies will also cover some legal costs to landlords. Most times those will be incurred when landlords need to seek legal advice, and that’s usually part of our general landlord insurance policy.
Don’t risk one of your greatest assets, repair and insure!
Have you found this article interesting? if you’d like to discuss your property needs further, please don’t hesitate to get in touch with our team today!
Call 0207 723 8082 or email firstname.lastname@example.org