Protecting Your Rental Property Investment

Since the 1970s, the value of real estate has steadily increased. From the current situation within the housing market, it will continue to do so unless something unexpected occurs. If you are planning to or if you are already in the property market, it is important for you to look after the property investment you have. When you first get into the property market, owning a property is regarded as a safe and dependable financial prospect. There are a few hazards to be aware of, and here are some of the things you need to watch out for.

Leveraging Your Property Investment

When you start investing in property your main goal is to receive the maximum return for as long as you own the property. However, this isn’t always as simple as it seems.

There is obvious annual growth when predating the future value of your investment. This growth varies for different reasons. These can be based on the location of the property, annual rental yield and the potential for renovations (e.g. extensions). The income is relatively easy to evaluate, however, there is a challenge that comes with the output required to support this.

All rental properties have aspects that need to be considered and managed. These aspects aren’t always visible, but they could become a hindrance to you over time if they aren’t managed correctly.

Things to Consider:

Before you start getting into property investment, it is important for you to consider a few things before you jump in.

Finding and Maintaining Tenants

A big concern for landlords is finding people to occupy their property. A key factor is having a tenant that pays their rent consistently and that stays for as long as possible. Having a high turnover of tenants or non-paying tenants costs you, so finding quality long-term occupants is essential.

Property Management and Maintenance

Part of finding a reliable tenant is also making sure that the potential occupant treats your property with respect. Having someone who demands repairs and damages your property will cost you.

Leaseholds and Legislation

Tenants and Landlords are protected by legislation. This is designed to ensure the quality of living and fair play. However it can appear to lean on the side of the tenant, and Landlords can sometimes find themselves stuck in a loop with a difficult tenant. You will need to negotiate tenancies and navigate leases.

Building Enhancement

By adding building enhancements, it is an excellent idea to increase your return. Doing this will increase the quality which will increase the rental value.

Some enhancements that can be done for the property are kitchens and bathrooms. These usually require renewal every 10 – 20 years depending on the quality of the original. These areas are prime for wear and tear, which could determine the tenant’s decision.

Tax

Owning rental properties means that your tax is affected. The rules can be complicated for property owners especially if they own more than one buy-to-let property. Staying on top of taxation and accounting is vital to protect your investment. Record keeping needs to be accurate and up-to-date to avoid losing money.

Let Us Protect Your Property

Protecting your property can be a hassle. A lot of which is having to deal with tenants. If you need help with managing your property, Robert Manning can help. We have a wide range of landlord services that can be used for different types of property. We can help with property management, HMO property management or block property management. If you are interested in finding out more about what we can offer you, please call us on 0207 725 8399 or email us today. We will cover all the aspects of being a landlord so you can rest knowing your property is protected.