Rent Your Investment Property

Most landlords take a property as an investment, intended to make money. Even for landlords who let their property for otherreasons it is usually important to them that they cover their expenses and make a money profit.

There are a lot of things that can reduce a landlords profit ranging from rent arrears, through empty periods, to damages disputeswith tenants. Here we want to concentrate on the two things that usually cause the biggest losses - empty periods (voids) and rent arrears.

Voids

The single biggest adverse effect on landlord's profits and surprisingly, one that many landlords don't see coming.With advice from a professional agent property can be prepared and presented to maximise its potential to let quickly. After that it is the agent's presence, marketing energy and practiced systems that will let the property quickly.

Your agent must advertise in the most effective places for you and they must know what's effective by continuously monitoring where tenant responses come from. For instance, did you know that the least effective place is usually the local press and the most effective is now the effective use of the Internet.

Rent Arrears

You should invest in full rent and legal tenant default insurance for landlords. This is offered by good reputable lettings agents. These agents will carry out vigorous tenant vetting and subject to these being favourable all tenancies can be insured.

This provides cheap, effective insurance to the landlord. Make sure you avoid policies which only offer '7 months only' coverageor have other strings or restrictions attached that are so common with off the shelf policies offered by some less reputable lettings agents.

A good policy is a genuinely effective safety net cover available, and should be available not just to Managed landlords, but also

Tenant Find landlords. It is also a tax deductible cost of the letting.It is perhaps folly not to have this type of cover now,particularly given the economic climate and the financial difficulties faced by tenants trying to pay their rent.

Benefits of a Good Local Lettings Agent

Using a professional, specialist, local letting agent is the single biggest step toward maximising profit. Agent's fees are a tax deductible expense and if you pick the right agent, money well spent. They will help you make the most profit from your property,advise you about the inevitable issues that will arise and minimise the problems and hassle for you.

The agent must be available on the phone and on-line to actually receive those tenant enquiries, must handle them in a polite friendly manner and must arrange viewings to suit prospective tenants. They must carry out viewings with trained negotiators.

One agent may be 1% more or less than another and that's maybe £4 to £7 per month difference. One month of unnecessary void could be £400 to £800 or more of lost rent - that's where the real damage to the landlord's profits lie. Voids and rent arrears will kill an investment faster than anything else.