A property is a major investment and has the potential to provide you with passive income with minimal hassle on your part. However, careful steps must be taken to protect this investment and ensure that you are receiving regular payments. With the right assistance, steady rental income can bring you financial security and help you plan effectively for the future.
Ensure rent is paid on time
Clearly state in your tenancy agreement with your tenant what the rental amount is and when you expect it to be paid by. For good tenants this will give a clear view of what is required from them, enabling them to act accordingly. Should there be an issue with payment, communicate with the tenant to see if the situation can be rectified. If a solution cannot be reached this way, having the expectations for rent clearly laid out in a contract will give you recourse to pursue Section 8 or 21 proceedings and recover arrears. Making sure that you aren’t missing out on rental income will help you continue to pay for the upkeep of the property and ensure you remain solvent month to month.
Find long-term tenants
Unless there is a particular reason you require shorter leases, it is recommended you pursue long-term tenants. If you have built a good relationship with your tenant, you can rely on them not only for consistent monthly income but also to respect and care for the property. Long-term arrangements also reduce the risk of ‘void periods’ where you are between tenancies not earning rental income but still paying for the expenses of the property. This can be extremely distressing and put a strain on your finances. By thinking long-term you can keep your income steady all year round and ensure you receive a good return on your investment.
Keep on top of repairs
Nothing will discourage a potential tenant faster than a shabby, unmaintained property. Investing in your property with a fresh coat of paint, gutter clearing, and garden maintenance can make sure it looks fresh and inviting for anyone taking a tour. This will give you your pick of tenants and can encourage those that you select to stay longer, ultimately netting you more income from rent. For existing tenants, make sure to promptly honour any reasonable repair requests with the help of reputable contractors. Ensuring utilities are working properly, appliances are safe to use, and that the elements can’t get in will create a comfortable and enjoyable living space. This can be a major factor in a tenant’s decision to renew their tenancy, ensuring you have a reliable income for longer.
Set accurate rent
This may seem obvious but it surprising how few landlords realise the true market value of their property. Especially if they have owned it for many years or the surrounding area has changed significantly. By having a rent review professionally conducted you can determine an accurate figure to charge relative to the price of the property and the area. This will ensure that you are receiving accurate rent. Setting the rent too high will discourage potentially suitable tenants, too low and you will not be earning the income you could be. Having the rent at the right amount will encourage a reliable influx of interested, suitable tenants paying regular rent that will cover your property costs and earn you hassle-free income.
If you are looking for professional property management, contact Pure Lettings. You’ll receive a personalised service from a dedicated, close-knit team which includes selecting tenants, arranging repair work, and rent reviews. Get the most out of your property investment and earn passive income by calling 01689 400100 or sending an email to info@pure-lettings.co.uk.
