Protect your property portfolio
We are providing you with a few tips to help you protect your income and take advantage of opportunities that may arise from a recession.
- Think about buying
The stamp duty holiday is tempting, finding a distressed seller sounds very appealing though you need to think in terms of long term thinking as property is a long term strategy. Tax saving is an initial discount though properties always require maintenance, keeping an eye on new regulations. Buying a property to make money can be a long term strategy. Buying a property in 2020 while the market is hot is risky but at the same time can be the best deal you have ever made.
- Hold on to your tenants
Keeping an existing tenant with a good track record is always the best option as the void periods can be lengthy. This may be the time to offer the tenants a guarantee of no rent increase and/or improvements to the property. Prioritise longer lets and reliable tenants over higher rents.
- Extend your appeal
You may want to allow pets or children so that your tenants want to stay. A child-friendly and pet friendly home is an added incentive for tenants to stay and you may be even able to charge a premium. Please bear in mind children and pets cause wear and tear.
- Choose your location wisely
Look at where rental growth might occur. Watch out for the rental demands and supply trends. Rents in London have fallen between 3-8% depending on the location since the beginning 2020. Future annual rental growth will be determined largely by the economic outlook, especially the rise in unemployment and the future path of average earnings. However the future is uncertain due to Covid-19 implications.
- Stay calm and relaxed
Stay positive as the rental market is healthy. The number of new prospective tenants rose in July 2020. For the market to fully recover from the pandemic, it is vital that landlords have good communication with their tenants and tenants continue to keep paying their rents.
- Switch up your portfolio
Think about rural letting options. Only time will tell how the pandemic has affected the lettings landscape though many agencies are predicting a surge in renters relocating to leafier areas and moving out of cities. Perhaps landlords with City based portfolios should buy further out of town. Scottish property market reported that Scotland rents are rising.There has been a rethink for many people from urban areas to the countryside, to reap the benefits of having access to lovely areas for walking and cycling.
- Consider the benefits
You may want to consider letting to tenants on housing benefits as you may be missing out on a more reliable income stream during a downturn. With unemployment on the rise even professionals are finding themselves forced to apply for universal credit. Since many employees have been furloughed even the employees who never had to rely on the housing system have been considering this option. This means landlords who have no prior experience of the welfare system may now have tenants in receipt of Universal Credit.
- Find platforms that may save you money
It is a great time to streamline your business with new innovative solutions. You may want to use an online property marketing platform though you do need to be aware of your compliance obligations. You can also streamline the pre-tenancy process that manages credit and background checks, generates contracts and automates the distribution of compliance documents.
- Get expert help
This may be the time to hire s good agent., You can benefit from savvy advice on how to achieve a higher rent.
- Make improvements
Utilise void periods. This is the time to carry out maintenance works and upgrades and give it a makeover.