How do portfolio landlords deal with the multitude of tasks and mountains of red tape that come with managing several properties? Read on to find out.
Owning a portfolio of rental properties can be a great way to earn income and build up a tidy nest egg for the future. But be warned: you can’t afford to wing it.
If you’re disorganised with deposits, rent payments, inventories and maintenance, you’ll wind up out of pocket.
And if you don’t keep up with the hundreds of rules and regulations that apply to landlords, you could be fined or jailed.
Then there are emergencies: if a pipe bursts or a boiler breaks down at one of your properties, you’ll need to act quickly.
So how do successful landlords with multiple rental properties do it? Here are nine ways to make managing a property portfolio easier and more cost-effective.
1) File paperwork securely and methodically. This will help with the day-to-day management and will be useful if there’s an end-of-tenancy dispute.
2) There are strict rules about how often you need to get the gas and electrics checked – failure to do this is a serious offence. Set reminders, so that you get your safety certificates in good time.
3) Have a trusted team of contractors in your contacts book. Having reliable tradespeople on call for repairs and maintenance will save you time and money.
4) Keep a compliance sheet for each property, so you remember to register deposits, take meter readings and check smoke alarms.
5) Schedule inspections in your diary and ensure tenants receive reasonable notice (this is specified in law) about when you plan to visit the property.
6) Join a landlord membership organisation to get regular updates on changes to housing law.
7) Consider getting multi-property landlord insurance. This will allow you to insure all your properties on a single policy and means you only have one renewal date to remember. Different terms and conditions apply, so do your research.
8) Use a good accountant. They’ll ensure you file tax returns on time and advise you on what you can and can’t claim.
9) Enlist a top letting agent. If you’re allergic to admin and prefer freestyling to sticking to a schedule, you can still be a portfolio landlord – you just need an expert on your team. A letting agent will take the burden of juggling multiple properties off your shoulders and be on call if there’s an emergency.
Contact us here at Greyfox today to find out more about our property management services.