I have freely shared that I will only accept new tenants with guarantors, and I am now taking much longer to choose a suitable candidate for my properties.
In addition to referencing, I’ve also started to experiment with applicants providing a personal profile so that I may further understand how the property fits with their longer-term plans.
As difficult as the cost-of-living is, I have not ignored nor shied away from rent increases. I pride myself on rewarding long-term good tenants with a discount, however I do increase annually and will keep in-line with market rents – albeit with a significant reduction.
With a potential change of government on the cards, I also have to be prepared for some existing properties not to make the grade.
In the future we may see a reversal of the U-turn on EPC regulations, the introduction of rent controls and a further increase in taxation.
These will directly impact some properties meaning their viability will no longer be sustainable and thus will be sold. It’s too early to make a decision yet, but I’m aware and am prepared to take the necessary action.
Keep an eye on costs
With mortgage rates coming down, it’s a good idea to set up alerts and be ready to pounce when a good deal becomes available.
For me, I’m now on the hunt for some decent five-year fixes, although I would prefer to start fixing some at 10 years to ensure I have security in knowing what my payments will be.
Many landlords will have experienced a huge spike in building insurance, and I would recommend using a broker to secure the best deal and coverage.
My broker secured me a competitive deal with my existing insurance company and it was only a single figure percentage increase.
With the ever-increasing costs of materials and labour, it’s key to examine every project cost. For example, I have now started to replace only half a kitchen (usually the bottom half), rather than replacing an entire kitchen.
I tend to choose a bolder colour choice to make the most of the new two-tone theme. I’ve also been inspecting carcasses more and changing doors and worktops which see the most usage, rather than a full replacement.
I’m fortunate to have a good network of plumbers but prices have still sky-rocketed, meaning on some properties I’ve taken out boiler cover policies to avoid too many unexpected expenses.
Where a boiler needs a major repair, I’ve also been reviewing replacements, especially given the potential changes to EPC regulations, and many new boilers come with 10-year warranties.
Ensure properties are at a decent standard
The plans to introduce the Decent Homes Standards to the private sector has been rather overshadowed by the Renters’ Reform Bill.
