House prices in the UK are steadily rising and, as a direct result of this, it’s becoming harder and harder for the UK’s buy-to-let landlords to turn a profit on their investments. In this guide, we look at how you can try to boost your returns and why it might be the best time to sell your former investment property.
Best Ways to Manage Your Rental Property
With interest rates appearing set to rise in the next year, maintaining a decent return is going to be harder than ever for most landlords. As such, actively managing your rental properties is more important than ever.
Firstly, consider the marketability of your property. Your property must be marketed well in order to attract tenants. Remember, as part of this, you not only want to attract tenants, but you specifically want to attract the right type of tenants. Try to go to viewings yourself if you live near the property so that you can meet the tenant, and don’t be scared of using both traditional and non-traditional marketing tactics. Using a high street letting agent is great but, for maximum exposure, and for the maximum amount of people to see the property, you need to make sure it’s online as well. This way you can attract new tenants quickly.
Secondly, take extra care in looking after your tenants and make sure you’re clear on legalities. Once you’ve attracted your tenants, make sure that they feel welcome in the property and keep in touch regularly. If you establish a relationship with them then they’re more likely to stay. Additionally, make sure you know the legislation. This way, if there’s any damage, you’ll know who is liable and it could save you on costs, increasing profit in the process.
Thirdly, make sure the price you’re charging is correct. Take a really detailed look at the local market. You don’t want to be under charging as you’ll be eliminating your profit, so do the market research before marketing.
Is it Time to Sell?
If you’re unsure about the above, or even if you’ve tried the above and are still finding it difficult to turn a profit, then it may be time to sell. After all, with house prices increasing and impending interest rate rises, it may only become harder. If this is the case, then selling your buy-to-let through a specialist such as Quick Move Now may be the best option, as it will allow you to release the capital that you have trapped in your investment, clearing the mortgage in the process.
So there we have it, turning a profit is difficult for most landlords and it’s only about to get harder, too. As a result, managing your rental property more smartly is the only way to try to turn a profit. If this fails, it may be time to sell. Consider your options carefully.