In
this three-minute read, we explain how landlords can navigate their way through
choppy economic waters and achieve good returns on their investment.

When
officials announced on 12 August that the UK had entered recession, lots of
economic experts came out of the woodwork.

Some
predicted things would get much worse; others suggested the downturn may be
less severe than first predicted.

The
truth is this year has been so unprecedented, it’s difficult to forecast the
road ahead precisely.

With
so much uncertainty landlords in Kentmay feel a little
wobbly, but the good news is that there are steps you can take to ride out the
recession.

The
key is to understand that it’s not about doing one single thing right, it’s
about doing several things well.

It’s
a bit like being a top cyclist. The world-class riders lining up for this year’s
Tour de France don’t spend all their time cycling (although they do spend a lot
of time in the saddle).

They
also carefully monitor their diet, work with a psychologist to strengthen their
mindset and do strength training at the gym. It’s this multi-pronged approach
that gives them the edge.

Landlords
hoping to avoid a bumpy ride need to take a similar approach. Here are the key
things on which to focus.

Tenant
selection

Get
off to a good start by selecting a good quality tenant. Ask lots of questions
and carry out thorough credit and reference checks. It may be tempting to cut
corners at this stage to save time, but you could come to regret it.

Mortgage
deal

It’s
surprising how many landlords lose money because they are not on the most competitive
mortgage deal. As interest rates are so low at the moment, many people are
locking themselves into three or five-year deals so they have certainty.

Be a
people person

You
need to foster a good relationship with your tenants. Never assume that because
you haven’t heard from them that everything is hunky-dory. Keep in regular
contact so that if their circumstances change, you know as early as possible.
The last thing you want is your property sitting empty because the tenant has
had to vacate at short notice.

Keep
calm

If
your tenant’s situation changes, don’t make any rash decisions. If a reliable,
trustworthy tenant finds themselves in difficulty, is it worth cutting them
some slack? Every landlord has to make decisions based on their individual circumstances.
But before you rush in, consider all your options and seek advice from experts
on the local property market who can update you on rental prices and demand.

Maintenance

A top
cyclist would never compete on a bike with tyres that need inflating or a chain
that needs lubricating. Take a similar approach to property maintenance. It may
seem appealing to save a little cash by delaying maintenance work, but it
always costs you in the long run. Neglecting your property can breed animosity
with tenants and lead to small DIY issues becoming major building works.

Use a
letting agent

The
best pro riders have a strong support team behind them. This allows them to
focus on what they do best and stops them from getting bogged down with admin
and paperwork.

Here
at CWB Property, we’re experienced at managing tenant
relationships and properties. We can help you to go the distance.