6 Tips for Landlords in the Current Property Market
How to navigate the UK property market and quickly adapt to the ever-changing conditions.
UK property market must-knows
In the current climate of high-interest rates and Renters’ Reform Bill revisions, nailing your role as a landlord is vital.
Akin to running a business, each property investment needs to be handled carefully and isn’t a decision to take lightly. If you’re ready to bring your A-game to the table, take a look at our top tips for letting property in the current market.
Tips for letting property in the current property market
Keep an eye on the latest goings-on
If you like to take an active landlord role, it’s wise to keep your eye on the property market to understand what the rental market is doing. It can help you understand how to attract good tenants, set a good rental price and minimise your void periods. To capture an accurate snapshot of how your local market is performing, talk to your local property expert. With a wealth of insights and experience, they’re well-equipped to advise you on pricing, tenancies, management and more.
Understand tenancy laws (and when they change)
Both landlords and tenants are protected by tenancy laws. These laws can change, which means your processes may need to change quickly. It’s important to know what your rights and responsibilities are by keeping up with any and all policy changes.
For example, the Renters’ Reform Bill is one to stay on top of. This legislation will mark the end of the assured shorthold tenancy and no-fault evictions. Another important point to note is that it will enable landlords to repossess their properties if they intend to sell or occupy it. The bill will also enforce regulations on how to serve rent increases to tenants, and it outlines the option for tenants to refer to a tribunal for adjudication on whether the rent reflects a fair market value – a free lettings valuation will help you determine this.
Maintain your property
Have you taken a ‘set-it-and-forget-it’ approach to your rental properties? We don’t judge: being a landlord is busy work. But maintaining the standard of your property throughout the tenancy period is a crucial, long-term strategy to keep your tenants and rental yield happy and healthy. Each property you own should be clean, safe, secure and in full working order. If it’s been a while since you last checked in on your long-term tenants, now is the time to schedule an inspection.
It’s tempting to think you can save money by knocking back tenants’ requested maintenance, but it will end up costing you more in the long run. You (or your letting agent) should address maintenance as it comes up and ensure your investment doesn’t deteriorate, which would severely impact its value.
Keep a financial buffer
There’s no doubt that the property market can be rocky, pandemic or not. And one important element in sustaining waves of down periods is to have a financial pot that you can lean on, should you need to. Letting a property is a business move and it should be treated as such. That means having enough cash reserves to overcome short-term bumps without defaulting on your mortgage.
Since no one wants to be financially stressed, a buffer can act as peace of mind in day-to-day life but come to the rescue when you face unexpected costs.
Go back to basics
There may be a time when you begin to doubt the property market or yourself. When this occurs it’s worth doubling down on what you know best. Keep to your area of expertise, whether that’s the most basic form of buy-to-lets or more complex developments. If you’re ever uncertain, your best chance of success lies in the area you’re most knowledgeable.
Doing this can help you in different ways. Firstly, there’s a sense of comfort returning to something familiar. Also, you can focus your time and energy into making decisions in an area where you have the most expertise – reducing the likelihood of making a mistake you later regret.
Use a letting agent
Unless you know all the updated regulations and ins and outs of being a landlord, a local expert letting agent can help your rental property to be as successful as possible. Not everyone is suited to being a landlord, whether they lack time or patience to take on all the responsibilities. A letting agent can help as much or as little as you’d like as they offer a wide range of services, from searching for tenants, collecting rent or full management.
Track your investment
The best way to track your investment is to get regular lettings valuations. First, connect with your local expert for insight into your local property market. Book a free lettings valuation or skip straight to speaking to a lettings agent for unmatched advice.
Common questions in today’s market
Can landlords refuse pets?
The answer isn’t so straightforward anymore. In the Renters’ Reform Bill, tenants are given more rights to keep pets in properties. It outlines that tenants can request permission to keep a pet in the home, and that landlords must refuse or accept (with good reason) by the 42nd day after the request.
The tenant must provide, in writing, confirmation that they have secured insurance to cover pet damage, or that they’re willing to pay the landlord reasonable costs to cover the landlord’s insurance in case of pet damage.
How much can a landlord increase rent?
When you have a property to let, you might want to increase your rent fairly and within the law without pricing out your current tenant. According to the government, the rental increases that a landlord requests must be fair and realistic.
Keep in mind that rent increases are set to be limited to once a year. Landlords must also give their tenant’s at least two months’ notice of any rent changes too. This is all part of staying on top of legislation – if you don’t have a lettings agent running it for you!
What’s the best way to stay on top of my rental property’s current value?
The property market is always in flux, which means the value of your rental property changes regularly too. To stay on top of its value and, therefore, your investment, book a free lettings valuation from your local expert. That way, you know how your investment is faring in the market and if you need to alter the rent.
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