8 Ways A Landlord Can Save Money

In this current financial climate everyone is feeling the warn urine falling from above, tainting our lives; every penny is actually starting to make a difference. Perhaps if we all actually assumed that every penny counted in the first place, instead of thinking it was just a figure of speech, we wouldn’t be in this position. Regardless, it is the way it is, and consequently people are willing to stab their Nan’s for a fiver these days. My Nan looks like a water fountain when she drinks fluids, thanks to me.

Here’s a list of ways Landlords can save a few bucks, so you know, you don’t have to stab your Nan.

1. Don’t use a letting agent

One of the biggest expenditures for landlords is using letting agents. I’ve seen letting agents charge as much as 15% for managing a property. That’s extortionate. Moreover, I’ve seen letting agents charge 10% for just finding tenants, with annual “renewal fees” on top of that.

I remember when a letting agent wanted £400 just to sort out the tenancy agreement contracts- that involved no management service and they didn’t even find me the tenants! It goes without saying that I told them to go and fuck…a…..tree.

Bottom line, dump the chumps, manage your properties yourself, and save yourself a bucket load.

Useful links:
Finding Tenants Without A Letting Agent
Assured Shorthold Tenancy Agreement

2. Use a Free deposit protection service scheme

When tenancy deposit schemes first came into play the moderating parties were requiring a service fee. It was another added expense which pissed off a lot of landlords.

I advise you not to use the companies that actually charge for the service, but use the only company which offers the service for free. Why is it free? Because they keep all the funds in one account and make profit from the interest.

The Free Deposit Protection Service

Useful links:
Tenancy Deposit Protection Quick Guide

3. Use trusted family and friends for services

A lot of the times the skills we require from people are obtained by those closest around us. Almost everyone knows a handyman, if not directly through blood relatives, then almost certainly through a family or friend. Point being, instead of hiring unknown labour, look closer to home to reap the rewards of “mates rates”.

4. Do as much as you can yourself

If there is anything you can do yourself (e.g. a bit of maintenance), then do it; even if that means rolling up your sleeves and getting a little dirty.

I advise with caution though, only do the jobs you can properly execute. A bodge-job is not an alternative for a job well-done.

5. Consider DSS tenants

I’ve already mentioned that letting agents can charge a ridiculous amount for simply finding tenants; I’ve also provided a link to how you can find tenants without using letting agents. However, if you want ready-to-move in tenants with minimal effort, then obtaining DSS tenants may be the best option for you.

DSS tenants are free, just go to your local council and they can provide you with a DSS tenant that can move in asap.

Useful links:
What Are DSS Tenants?
Tips For Taking On DSS Tenants

6.Shop around for quotes

Always get a few quotes for anything and everything, whether that is for labour or parts. The lazy landlord will often go with the first and easy option, and consequently pay significantly more than necessary.

7. Make sure you’re getting the going rental rate

Everyone is either too scared to buy or can’t afford to buy, so demand for rent is soaring, consequently landlords are taking full advantage and pushing up rates. On that note, make sure you’re marketing your property at the going rate. To find out what the going rates are, look in your local paper, check out Rightmove and check out the windows of your local letting agents.

If you’re charging below the going rate, consider increasing your rates.

Useful links:
Notice Of Rent Increase Form

8. Get a better mortgage deal

If you’re about to come off your fixed rate mortgage and get thrown onto the Standard Variable Rate (SVR), then it’s definitely worth remortgaging before the SVR kicks in. You’ll save a huge chunk of change on a monthly basis.

If you’re on a repayment mortgage, consider switching to an interest-only policy while times are hard. Interest-only policies are more flexible because you can make overpayments. Mortgage payments will also be lower. For example, if you have a two-year fixed mortgage of £150,000 at 5.99%, you would pay £748.75 per month with interest-only payments but £965.54 on a repayment basis. That’s a significant difference.

Useful links:
Interest-only Vs Repayment Mortgages

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Talk / 3 Comments left so far

Uncommonadvice wrote this on 2008-10-08 23:05:21 What about cashbacks? 1

The Landlord wrote this on 2008-10-09 07:12:06 Hey,

What do you mean? Can you provide more details, please? 2

humayun wrote this on 2010-01-23 00:32:07 point 7. - Hi Landlord, is/was this area/date specific info? as a landlord in London I recall it being quite competetive to let a property as many sellers were/are also choosing to let increasing renters choice and reducing rental income. 3

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