Did you know that most people break their New Year’s resolutions within a month?
It’s hardly surprising given that most are based around health & fitness, which means heading to the gym at the crack of dawn during the coldest and darkest time of year – hardly a recipe for success!
But you can set new habits as a landlord without the need to get up at 5am or starve yourself of treats, and some of the most valuable areas to look at include:
- Keeping your buy-to-let profitable
- Preparing for net zero
- Making tax returns more manageable
- Treasuring your time
- Future-proofing your business
As luck would have it, you’ll find all that and more in this week’s blog, so you can start your 2024 with a solid outlook for the year ahead and beyond.
- PUT YOUR BUSINESS FIRST
Landlord forums are full of investors experiencing financial difficulty from having frozen the rent on their properties while absorbing the costs of higher interest rates and changing taxation.Good tenants are absolutely worth keeping, and balancing compassion and profit can be tricky, but if you’re forced to sell up and take another rental home out of the market, it serves no one. - PREPARE FOR NET ZERO
Although legislation for more energy-efficient rental homes is moving slowly, you can be sure that it’s coming, and landlords will need to ensure their rental homes meet the new standards.The cost of works will undoubtedly soar when a bill is passed as landlords scramble to catch up, so plan for gradual upgrades now to save money and spread the outlay over a few years. - WISE UP TO TAX
Forget last-minute tax panics and get organised instead: set a monthly alert on your phone to update a spreadsheet with income and receipts – an hour each time should do it.As well as having the joy of constantly feeling ahead with your tax return, you’ll be ready to file it at the end of the tax year, nine months before the deadline. Bliss! - TREASURE YOUR TIME
Nobody becomes a landlord because they desperately want more administration and paperwork in their lives, so don’t get bogged down in anything that you find unenjoyable.Think about how the time spent doing things yourself could go to growing your business, then give little jobs to contractors, tax to an accountant, or employ a managing agent. - FOCUS ON THE FUTURE
As new technology comes along and expectations from tenants rise, it’s essential to future-proof your investment so it consistently attracts premium tenants and rent.A few hundred pounds can add thousands in value, and plenty of jobs can be done in a few hours while your tenants are at work, so you can upgrade without interrupting your income.Low-cost value-adding jobs include updating ugly radiators for stylish ones, replacing a mixer tap and hose with a decent shower, and swapping an old-fashioned hot plate for an induction hob. - CULTIVATE CONNECTIONS
When you work with tenants and contractors, a lot comes down to their experience of dealing with you, as well as the financial transaction. So, it pays to nurture those relationships.Dropping your plumber, electrician or tenants the odd message of appreciation (Happy New Year, for instance) is the perfect way to build and maintain reciprocal good feelings. - PRE-EMPT PROBLEMS
If you haven’t been carrying out mid-tenancy inspections, start them now. There’s no better way to spot potential problems early, before they turn into a crisis.Take a look at our blog on mid-tenancy inspections for a comprehensive checklist of what to look for and save yourself the time, hassle and expense of dealing with things too late. - LEARN THE LAW
We spend a lot of time keeping on top of legislation so our landlords don’t have to, but if you’re managing things yourself, you can’t afford to fall behind on the latest changes.There are hefty fines for non-compliance, so bookmark landlord forums and the Government’s website so you can check back for updates (it really is much easier with an agent on your side). - GO PAPERLESS
Ditch the paperwork in 2024 by going fully digital and either scanning or taking photos of tenancy agreements, certificates and receipts.Then, create folders for each year, either on your computer or in the cloud, and divide them into sub-folders of receipts, certificates, guarantees and contracts for optimal organisation and ease. - PONDER YOUR PURPOSE
Why are you a landlord? Why did you start in the first place, and is it the same reason now? To give up your day job? Have financial security in retirement? Leave a legacy for your family?Keep the answer at the front of your mind when thinking about what would help you achieve those goals. Is it selling up, expanding your portfolio, or making upgrades to increase your income?
What’s next for your buy-to-let business?
Start the new year with focus and a no-strings chat about boosting your business this year. Call Richard Cook on 0790 909 3141 or email him at richard.cook@fifeproperties.co.uk for a friendly and expert chat.
We’d love to show you how we’re helping landlords to plan for profit and live the life they want.
