Landlord tips to survive the credit crunch and come out stronger

The outlook may look bleak at the moment for the housing market, but we know from market trends that the market will pick up again in the long run, maybe as soon as five years from now. Landlords will then see their investments grow, and for those with resources available at the moment there could be huge opportunities to expand their portfolios. If this would mean stretching yourself financially at this time then this may not be a wise move.

Click4Quote.com have put some tips together that may help in the meantime:

Managing your property yourself will save on agent’s fees, so if this is an option to you this could save you money. Alternatively look for options where you can do certain things yourself and negotiate lower fees and renewal costs.

Research your local market carefully taking into account the demand / supply balance and price your rents conservatively to avoid the voids and retain your tenants longer. It will pay in the long term to be as competitive as possible rather than risking the property lying vacant for long periods of time.

Select your tenants very carefully and avoid panic lettings - a bad tenant can be far more expensive than an empty property, not to mention the stress and worry a bad tenant can cause. Do tenant checks and follow a good screening system such as Tenant Verify.

Be professional when dealing with tenants - don’t delay or penny-pinch on repairs as tenants tend to rent to avoid the worry of repair bills so don’t disappoint them and risk them moving on.

Research the best mortgage deals available - this may take time but it will be worth it. If you consult brokers and finance companies you can find good deals out there even in this economic climate.

Make sure your insurance is correct for the type of occupancy. Let property insurance would be required for tenant occupancy, property owners liability and legal cover as accident claims can be extremely expensive and time consuming to sort out. Landlord insurance can be arranged from as little as £78.75 with Click4Quote.com so it is well worth checking.

Ensure you meet all your legal obligations, especially the new ones in relation to Licensing, Deposit Protection and Energy Performance Certificates, as the fines can be high for non-compliance.

If you do find yourself in financial difficulties, hanging on in there if you can is preferable to crystallising losses now. Always keep your lender informed and get help and advice. Consider a second job, taking in lodgers, and cut spending to the bone - short-term pain is preferable to long-term debt.

If you have any other tips that you think would help other landlords please feel free to post them below.