As a landlord, your main income comes from the rent that your tenant pays you. But there’s a range of expenses that also need to be taken into account before we can talk about actual profit, and that’s important. So what does it take to be a more profitable landlord?
We’re going to talk about some of the most important things that’ll ultimately impact your ability to make money as a landlord and what you can do about those things. So read on now if you want to find out more.
Finding the Mortgage Deal with the Lowest Possible Interest Rate
First of all, you need to think about interest rates and what they mean for you. If you want to make sure that you’re making as much profit as possible, you don’t want to be giving away lots of money in the form of interest to your bank every month. But that’s what a lot of landlords do. Always be looking for the best mortgage possible with the lowest possible interest rate attached to it because that’ll benefit you in the long run.
Being Exceptionally Organized
Lots of the best and most successful people in the world of real estate also happen to be some of the most exceptionally organized people that you’ll ever meet, and that’s not a coincidence. If you want to make progress and become profitable as a landlord, you really need to think about how you can organize your professional life better. That means staying on top of bills and communications and never leaving important matters to the last minute.
Saving on Letting Agent Fees
Letting agent fees can be a real drain on your finances if you’re not careful, and that’s something that you should look to avoid if you can. When you have letting agent fees to contend with, it means that you’re losing out on some of that profit. So try to find reasonably priced letting agents or simply source tenants yourself. There are lots of options other than throwing money at expensive letting agents all the time.
Keeping Hold of Good and Reliable Tenants
You need to understand the importance of good tenants when you’re a landlord; they make your life a whole lot easier. If you find a good tenant, you need to be willing to put in the work involved with keeping them happy and wanting to stay on. A tenant that doesn’t cause any problems and pays their rent on time every month is a huge asset and they’re not as common as you might assume.
Making the Most of Tax Allowances and Discounts
There are lots of allowances and deductions that you can make the most of when it comes to paying your tax. You should try to make sure that you’re not missing out on these because that’ll mean your bottom line is suffering. Instead, you should work with a professional to make sure you’re only paying the amount of tax that you’re actually obligated to pay. There are so many ways to reduce tax on rental income and that’s something that you shouldn’t overlook.
Using Professional Tradespeople
When there’s something that needs to be fixed in your rental property, you’ll want to make sure that it’s tended to sooner rather than later. And you probably shouldn’t try to take care of these things yourself if you don’t have the relevant expertise. Always rely on professional and trustworthy tradespeople to take care of this kind of work for you. It might mean spending a little more money, but it could save money in the long run because they’ll get the job done properly.
Growing Your Real Estate Portfolio Over Time
Growing your real estate portfolio over time is how you scale your profits and make more money going forward. Sure, you can stick with one investment if that works for you but it all comes down to what you feel makes most sense for your situation and what you plan to do next. If you want to rely on your income from real estate to fund your lifestyle, it’ll be easier if you have multiple revenue streams in place.
As you can see, there are lots of things you need to consider, especially if you’re about to get started as a landlord and don’t have much experience under your belt. By keeping in mind each of the points discussed above, you can prepare better and make sure that you’re as profitable as you can be.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)