Property News

With 4.6 million privately rented homes in the UK currently occupied, we live in one of the most rent-heavy countries in the world. As a landlord, though, that means that your buy-to-let property will be up against a lot of competition. So, how do you ensure your house is snapped up by the right tenants?

A successful buy-to-let portfolio is all down to good management. If you want a steady stream of trustworthy tenants and a stress-free income, you have to learn the ins and outs of managing rental properties.

Ready to learn? Get started with these tips.

1. Find the Right Mortgage

A well-managed portfolio starts with solid financial foundations. For a lot of landlords, their first experience with managing a property is sorting out a mortgage for the house they’re looking to buy.

This can make or break your buy-to-let plans. For a profitable portfolio, you need to ensure your repayments don’t exceed rental income, and that involves forecasting the rental value of the house and watching the property market to balance interest rates against fluctuating rental prices. 

It’s not always an easy process, but you can make it a lot simpler by doing your research beforehand. Look into your options and seek advice on buy-to-let mortgages from unbiased professionals, working out which structure and repayment plan is going to work in your favour.

2. Get Your Finances in Order

Once you’ve finalised your mortgage and bought your property, it’s time to shift your financial focus. Now, you need to ensure your rental portfolio cash flow is in order.

An important tip for managing a property’s finances is to record all of your expenses with corresponding evidence. Be diligent about saving relevant receipts, keeping records of your mileage to and from the property, and asking for invoices from suppliers. When it comes to the tax year-end, you can then claim these back as deductible expenses and reduce your bill.

It’s also a good idea to create a budget for your buy-to-let property. Look at regular payments you need to make, such as mortgage repayments, utilities, and maintenance costs to get a clearer picture of your outgoings. Set aside an emergency fund for unplanned maintenance, too.

If finances aren’t your strong point, one of the most important buy-to-let tips is to speak to an accountant. They can give you more information on how to manage your money, ensuring you comply with tax law and create a profitable income.

3. Know the Rules and Regulations

When it comes to property rental management, keeping up with the industry rules and regulations is crucial. From safety laws to data protection, there are a lot of legal ins and outs to be aware of.

Joining a landlord association can help you stay up to date with legislation, as can an agent who manages your portfolio for you. But, even with these systems in place, it’s important to note that it’s your responsibility to keep up with the law and regularly check for changes. 

4. Invest in Relevant Software

Managing a property portfolio is made a lot simpler these days thanks to the help of digital software. There are tons of great tools out there that can automate tasks and track data so that you don’t have to. 

Some great options to look into include:

• AppFolio - Attract tenants, manage your assets, and track maintenance with cloud-based rental management tools.

• Buildium - Designed for real estate professionals as a full-service rental management system including accounting, leasing, and business operations tools.

• Quickbooks - A handy tool that helps you manage your finances and stay tax-compliant without the need for an accountant.

• PayRent - Collect online rental payments without confusion or stress.

That’s just a small selection of what’s available. Be sure to look further into the best rental management software to find the right solution for your portfolio. 

5. Create a Maintenance Schedule

A maintenance schedule helps you get ahead of jobs before they become emergencies. By noting down when certain items in the property will need to be inspected or replaced, you can keep an eye on any amenities that are getting older for proactive rental management.

For example, boilers tend to last between 15 and 20 years. Make a note of the year the existing model was fitted and another note of the year it should be inspected or when you should start looking into choosing a new boiler. 

Not only does this maintain a more efficient, more appealing property that will attract good tenants, but it also helps you plan ahead financially. If you know your boiler needs replacing in a few years, you can put savings aside to prepare for that now.

6. Learn How to Market Your Property

Marketing a property is a key part of managing your buy-to-let portfolio and earning a good income. A successful strategy should help you:

• Reach a wider pool of suitable tenants

• Attract the right tenants to apply for your property

• Reduce vacancy periods

By marketing your property correctly, you could also see an increase in the amount of time your tenants stay in the house, leading to fewer turnover fees and a more stable income.

Most landlords will work with a real estate agent, who usually takes care of the marketing for them. But, if you’re taking the DIY approach, here are a few tips to get you started:

• Always add your property to third-party listing sites to increase your reach

• Do your research to find an appropriate rent price

• Write an accurate and detailed description of the house that highlights unique details and benefits 

• Take well-lit and realistic photography when the house is clean

You’ll also have to carry out your own showings of the property. Make sure you’re prepped to talk about the features that make your home stand out and any information about the local area, including transport links and schools. This is your time to sell!

Final Thoughts

Whether you’re managing a property or a portfolio, by being prepared you can make each aspect of the buy-to-let journey a lot less stressful. Hopefully, these tips have given you some insight to help you get started. 

For more UK property news, be sure to join the Nethouseprices community.