Published on March 6th, 2014 | by richard0
How To Reduce Spending And Save Money When Joining The Rental Property Market
There are so many business opportunities out there at the moment that people with cash to invest are a little spoilt for choice. However, opting to purchase properties with a view to becoming a landlord can be one of the best ways of earning a good living without having to exert too much effort. Social housing has been on the decline for years, and this means there are hundreds of thousands of people in the UK who have no choice but to source accommodation through this means. Whilst that’s not the best revelation for those renting, its amazing news for potential landlords, as it means properties hardly ever remain vacant for more than a couple of weeks.
Even so, anyone wishing to join the rental market will need to take precautions to ensure they reduce spending and save the most money possible. Luckily, this is easy so long as enough research is undertaken, and the right information is found. With that in mind, today I’m going to give you some handy tips that could make all the difference to your prosperity. Don’t get me wrong, purchasing a property with the intention of renting it out privately is going to involve a pretty significant level of startup investment, but that doesn’t mean you can’t cut back along the way.
Attend Housing Auctions
For whatever reason, some people opt to sell their home at auction, and this is the best place for you to find a real bargain. Sure, you’ll need to place bids on a building before you’ve had a decent look around, but you’re obviously free to cancel your offer should any information come to light that wasn’t presented during the initial description at the auction. On average, people save around 15% on properties bought using this tactic.
Compare Prices For Landlord Insurance
Once you’ve obtained the perfect house, you’ll need to start thinking about finding a suitable insurance policy to ensure you stay within the law. Unfortunately, some providers inflate their prices for those attempting to start a business, so you’ll need to shop around and compare quotes before agreeing to sign any contracts. Sites like www.discountlandlord.co.uk are a good place to start with this.
Don’t Use Estate Agencies
Although they may be in the best position to find tenants for your property quickly, their rate of commission is far too high for people looking to save money. This means you should probably try to locate potential occupiers on your own. While this might seem like a mammoth task, through the use of social networks and a basic website, you’ll be able to promote any available homes in your portfolio to the people who matter most. This could save you as much as 13% of your rental income; that would otherwise have been paid to agents.
After reading those tips and learning more about common methods for reducing spending when building a property business, you should now have some fruitful ideas for ensuring your money stretches as far as it possibly can.
Good luck with the new business venture!