As experts predict the inflation to remain high for the upcoming six months, it is putting a lot of pressure on the landlords because of the increased tax rates which have led to more tax liabilities and compliance requirements. Now many of them have planned to use the only way to handle the issue and that is by raising the rents. But will it not pressurize the tenants as they have to work twice as hard to pay the rent without let up and because of the increased rents landlords can lose tenants too. How can landlords overcome this problem and successfully deal with inflation? Are there any other ways to overcome inflation?
If you are a landlord trying to handle the effects of inflation and need effective tips to look after the property during this critical situation, you can get help from the Letting agents in Brighton.
They will help you keep your rental properties accommodated by finding you good tenants any time of the year and as a result, you will always be able to get your rental yields. You can also know about the ways that will help you to overcome inflation without raising the rent.
1. Shopping around for mortgage options
The forecasts are predicting that inflation will decrease in the second half of 2023 but still, it is only a prediction and anything can happen. So landlords need to be prepared to handle any tricky situations that can pop up.
As a landlord, you can try to shop around for attractive mortgage rates from mortgage lenders.
When you get a great mortgage deal, you can make a quick switch particularly if you find yourself tied to a mortgage deal for many years. Making a switch will benefit you if you find your current deal is not competitive or if you require a better interest rate. Plus it is also useful if your current mortgage lender is not offering you the choice to overpay the mortgage quickly without paying a large penalty amount.
2. Regularly inspecting the rented property
When you make it your aim to inspect your rented property regularly, you can identify any small issues in the property quickly and by doing this you can avoid any big repairs in the future that can cost a lot of money.
If any problems are caused by tenant activity, you can use your position as a landlord to offer them advice and ask them to maintain the property properly.
To cut extra costs during inflation, you might decide to limit the property maintenance costs but you have to keep in mind that regular maintenance and repairs will help you to potentially increase the capital value of the investment. This will in turn allow you to apply for a re-mortgage at reduced loan-to-values (LTVs).
If you continually strive to take care of your rental property, your tenants will also respect your actions and will learn to keep it well-maintained.
3. Moderate rent increases
High inflation can tempt you to increase rents but you can decide to keep your regular paying tenants by moderate rent increases that are far lesser than the steep rental hikes in the market. Choose the rates that your tenants can afford to pay and that you find satisfactory and in this way you can avoid the possibility of evicting tenants and losing money.
4. Explore rent and legal protection insurance
For landlords, there are many good rent and legal protection insurance policies available that will help you to lessen the risks that changes in the economy can bring. Therefore you can keep exploring the policies available which will offer coverage for your property and you can also overcome inflation by raising rents.
Want to know more ways to handle inflation?
If you want to keep your rental property well-protected during this unpredictable economic climate, you can get in touch with the local letting agents who will offer you their professional guidance on how to overcome the challenges. They can tour your property and give you effective tips to maintain it to increase its value and if you need to find good regular paying tenants they will find them for you. Hurry up and call them now.