29 Apr

Buy-to-let landlords need to track trends

Buy-to-let landlords need to track trends

Landlords should keep track of what is happening in the wider economy so they are able to react quickly and boost their income.

Following trends in consumer spending, government plans and construction could allow buy-to-let landlords to be better placed to expand their property portfolios or maximise rental yields.

Focus of construction

Supply and demand is at the heart of rental prices and if construction rates are down then this could benefit landlords as more people struggle to buy homes and consider renting instead.

Equally, if the construction industry is struggling to keep up with demand then it can push up purchase prices for anyone hoping to add new builds to their property portfolios.

The impact of rent prices

Rent prices changes are often at a slower rate than house prices because landlords are unable to simply increase rents without first ensuring they are following tenants' rights. Therefore, the lag can be due to new tenancy agreements being drawn up as contacts come up for renewal.

However, watching house prices could help to ensure landlords are poised ready to make sure they are maximising yields rather than waiting for media reports revealing an upsurge in rent payments.

Track interest rates

Although the Bank of England interest rate is at an all-time low, there has been some general industry mutterings that it could be set to increase as the economy, and property prices, start to heat up.

Keep an eye on the local market

It is vital for landlords to keep an eye on the local market to keep track of the competition and make sure they are reacting to any fluctuations in demand or supply.

Setting the right price is a key element of being a buy-to-let investor as it will need to cover costs, but equally it must attract tenants.

Ensuring the house is not too low priced will keep landlords from appealing to an audience they may not want but too high may mean the property is sitting empty for long periods - and alternative ways of paying any outstanding mortgage will need to be found.

Checking local property websites and newspapers could allow landlords to be better informed about any potential leeway for negotiation in terms of price with potential tenants.

Watch out regulation changes

Rules and guidance for landlords and tenants is very often reviewed so it makes sense to keep abreast of plans for change via the various industry bodies, such as the National Landlords Association.

Recent years have seen the introduction of a government regulated deposit scheme and there are possible plans for landlords to ensure they met basic eco-housing rules for their residential properties.

Be a good landlord

Above all it is key for a landlord to stand out from the crowd, especially at a time when there is strong demand for rental properties. One option is to offer tenants a reliable and enjoyable experience. Responding well to emergency repairs and respecting the privacy of renters are also good ways to make sure a property remains occupied and income is steady.ADNFCR-1222-ID-801716368-ADNFCR

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