The best way that landlords can reduce risk during uncertain economic periods like the current COVID-19 pandemic is to cut costs. By cutting costs you will be able to maximize your ROI or at the least reduce the impact on your portfolio.
Tempting Remortgage Rates
As a landlord one of your biggest expenses is undoubtedly your mortgage. Taking this in to consideration, it should be the first thing you make sure you are getting the best deal on.
The industry changes fast and it’s always worth taking a look at the latest rates and considering remortgaging.
Although the construction industry itself has not been stopped due to COVID-19, there has still been a considerable number of cancellations and delayed projects. This has inevitably led to an increase in the amount of tradesmen available. As a result, it may be a good time to shop around for prices from alternative tradesmen in your area. I know a lot of us use trusted sources, sometimes even personal friends, to fill these roles but during uncertain times like these, number 1 has to come first.
As a landlord you may be entitled to claim one of the following tax incentive schemes:
- Home Renovation Incentive
- Living City Initiative
- Leasing of your farm land
There are also many variations of rent to buy schemes. These schemes allow you to rent out a property for a trial period, before your tenant decides whether to buy it.
Remember the basics too. Every penny claimed as an expense reduces profits, which in turn will mean a lower tax bill. Remember to save every receipt – these can cover a range of items from property management company fees to tradesmen and services.
One thing many landlords unfortunately experience is late payment of rent. A more unfortunate bunch have had to deal with outright refusal to pay. All great fun.
One way to mitigate this risk, is to avail of Rent Insurance for Landlords.
This ensures that you still get paid if your tenants cannot make their payments. Some insurers will go so far as to cover your for legal expenses in the event of an eviction.
A good property management company can take care of all this for you. If you are not already working with one, feel free to give us a call on 01-8442400
Just one last thing to help save on those costs. Always make sure to keep an up to date inventory on your property/properties. As basic as this may sound, we’ve all heard horror stories of undesirable tenants ‘disappearing’ furniture only to claim it was never there. A solid, up to date and signed inventory will prevent this from happening to you. I’m sure most season landlords are already very aware of this, but starting out it can be easily missed, so make sure to make that list!