Managing Rising Costs During the Cost-of-Living Crisis

The cost-of-living crisis is still one of the biggest issues we are currently dealing with in the UK. There have been a lot of challenges for everyone when it comes to managing the rising costs. Alongside the ongoing rises in house prices, and the possible price drops (especially after the big rises), people within the property industry are trying to cope.

What Does This Mean for Landlords and Tenants?

Both landlords and tenants who are impacted in various ways are deeply concerned about the cost of living crisis. As a result, there is a feeling of uncertainty in the market. There are still not enough homes available to match the increasing demand for renters in the rental market. As a result, there is still a significant demand for rental property, but rising prices might easily result in renters not paying their rent. This means if you plan to raise rent prices as a landlord, you could put even more strain on the renters who are already struggling under the weight of rising food and fuel costs.

What Steps May a Landlord Take to Safeguard Their Position?

As the cost-of-living crisis looks like it is here to stay for the rest of the year, managing their rising costs now is key to helping landlords. Here are steps they should consider when dealing with this.

Planning and Budgeting

Thoroughly examine your income and expenses. This is so that you can understand the reality of your current condition. Being open and honest about your financial status is the proactive approach to business management. Therefore, start by updating your spreadsheet!

Look for Areas for Improvement

Watch for manoeuvrable areas. Could you obtain a better bargain if you have to buy-to-let mortgages with a fixed rate? This is a good time to negotiate a new fixed rate to prevent future increases in your mortgage payments.

Protect Your Investments by Making Wise Financial Decisions

Given the high cost of energy, it is wise to check your properties and make sure they are well-maintained. Future priority investments include things like new heating or glazing if you’re thinking about making improvements to meet rising EPC standards. Improved insulation will increase the value of your house while also assisting your tenants in lowering their energy costs.

Ensure the Landlord-Tenant Relationship is Protected

The best moment to speak with your tenants is right now. How are they doing, are they going to be in arrears on their rent, and is it possible to raise the rate? In the end, excellent, dependable tenants are a benefit, and you might discover that it is preferable to bargain with your “quality” tenant to find a workable solution rather than terminate the tenancy and fight to find better. After all, it is expensive to find new renters, and there is no income from a vacant home.

Use Care When Hiring

Always check references when seeking new tenants, and if necessary, ask for a reliable guarantor. You want tenants who will pose less of a risk to you and who will pay a reasonable—not necessarily the highest—rent for as long as possible or for as long as you require.

How Can We Help?

If you are looking to manage your cost during this time, do not let your property portfolio be affected. By hiring our team of skilled property managers, we will be able to handle all of your property needs as well as your tenants. Why not talk to our experienced team about how we can help you to manage your portfolio today on 0203 725 8399 or send us an email to info@robertmanning.co.uk.