It pays to sit down once a year and review how your
buy-to-let is performing and flag up any potential issues looming on the
horizon. A two-minute read.
We’re
all familiar with an MOT, an annual check-up to ensure your car is safe and
good to go for the year ahead. Well, let’s apply the same concept to a
buy-to-let investment.
Even
if your current tenancy is ticking along nicely, a property MOT can be a
helpful exercise to ensure that you:
- Are up to date with government regulations and
maintenance - Have the right rental strategy
- Are not spending more than you need to on your
mortgage and repairs.
So,
let’s go!
Do
the maths
Go
through your records and calculate your return on investment and rental yield
(there are online calculators to help you do this). See if you can identify any
possible savings (consider everything from landlord insurance, mortgage deal, accountancy
fees, etc.). Even if these gains are small, they all add up.
Repairs
and maintenance
Often
tenants are reluctant to raise minor concerns for fear they’ll look petty or
get the blame, so don’t wait for them to call you. Be proactive and get on top
of any leaks, mould or drainage problems. Ensure you’re up to date with
mandatory gas and electrical safety checks.
Energy
efficiency
We
all know energy prices are soaring. Ensure your property is well insulated and
draught-proof. Don’t wait until the winter to get this job done. And think
longer term, as new energy property rules are on the horizon.
Décor
review
Times
change, but has your property? If your property looks tired and
dated, you could be missing a trick. In some areas, the pandemic brought about
a huge demographic shift that is being reflected in the rental market. Consider
a cosmetic makeover or garden spruce-up so that you can target groups such as
professionals, relocators or young families.
Property
management
A
property MOT isn’t just about money; it’s about time, too. If you self-manage,
analyse the true cost of this task on your quality of life. If you’re finding
the admin and legal requirements increasingly onerous, get a letting agent to
take the burden off you. An agent’s expertise and market know-how may also save
you money in the long run.
If
you already have a letting agent, consider the quality of service you’re
getting. Are your calls answered promptly? Is your agent meticulous when it
comes to maintenance deadlines and routine checks? If you’re not happy, it’s
time to shop around.
To learn more about the property management
services we offer here at Ridgewater Sales and Lettings, get in touch.