Facebook Pixel

💰 Self-managed Landlords! Top tips to keep your cash flow in shape đŸ‹ïž‍♀

Before you buy

✅ Work out 'acceptable' gross yield by dividing annual rent by purchase price 🧼
✅ Example: £12,000 rent a year on a property bought for £200,000 gives a gross yield of 6% 📈
✅ Compare with leaving your £200k in a bank (around 1% interest!) đŸ˜±
✅ Gross yield guide: 5% = Acceptable 6%-8% = Great 8%+ = WHOAAAA! ⭐
✅ Gross to net calculation - use 9 months rent instead of 12 🧙‍♂
✅ Prepare 1 month void per year, 1 month maintenance and 1 month Letting fees đŸ€”
✅ Effectively, £1,000 rent = £9,000 approximate net income per year đŸ’¶
✅ NOTE: you can SIGNIFICANTLY increase your Return on Investment by using a BTL mortgage, for a real 25.1% example click here!! https://lnkd.in/eQervpw đŸ“©

Rent Management

✅ Run your Tenancy 12 month fixed to expire August/September - these are the busies times for finding new Tenants and therefore you'll reduce void during Tenancy transfer 🚌
✅ Increase your rent - 10% is an acceptable level đŸ’č
Consider pets (with relevant clauses in Agreement) - rent can be increase further! đŸ¶
✅ Only accept Standing Order payments and handle late payments immediately ⚡
✅ Use float balance throughout Tenancy - putting £50 aside each month soon adds up! 👍

Property Management

✅ Invest in making property more efficient - saving your Tenants money on utilities means they have better cash flow, which means rent on time 💡
✅ Maintenance is a lot easier on cash flow if you're preventing instead of waiting for things to go wrong - so pop round and actively look for potential issues 👀

Managing your outgoings

✅ Do not pay for dilapidations that are down to your Tenant! Keep a strict record from the start to ensure you have the evidence needed to go to adjudication if needed 📋📾đŸ“č
✅ Review mortgage deals, insurances and other expenses yearly 📊
✅ Move your Rent Due date a week before your mortgage goes out 📆

🙋‍♀ Are you looking to buy an investment property? Do you have a current investment that's not performing as it should? 🆘

LATEST INVESTMENT FOR SALE | Foxhall Road | NG7 | 3 flats | Rented at £17,880 per year | 5.7% yield | £310,000 https://cavendishproperty.co.uk/sales/property/216/foxhall-road 

Speak to our team today, when it comes to MAXIMISING your return it's what our EXPERT team does best! đŸŠč‍â™€ïžđŸŠž‍♂


#cavendishexperts #landlords #howtorent #investinginrealestate #investinginproperty #landlordsuk #landlordtips National Residential Landlords Association - NRLA ARLA Propertymark #investement #lettingsagent

Posted 05 August 2021
by Ali Baylav Managing Director Cavendish Residential

Want more daily property news? Follow us on LinkedIn.

Search your perfect place to Rent
Search your perfect place to Buy
Looking to sell?
Looking to invest?