1. Overpay your mortgage
In the current economic climate many landlords are not investing the difference in rental yield and mortgage repayments back into their mortgage. Once the average mortgage payment begins to rise again, landlords who have not overpaid their mortgages will have become used to spending the extra income and will find it difficult to pay higher mortgage payments. Bad habits like these could lead to an increase in arrears for buy-to-let mortgages.
Although the buy to let mortgage market is expected to recover from early 2010, the lending criteria is expected to remain tight. Lenders of mortgages and other loans will look at your credit rating. Overpaying your mortgage will make you look more attractive to a lender.
THE LESSON: If you are currently paying less on your mortgages as a result of lower interest rates, use the difference to pay off as much as you can afford.
2. Be selective with your tenants
Always reference your prospective tenants. Northfields Estates uses a professional referencing service which assures you of quality tenants and spares you the trouble of chasing the prospective tenants' history.
THE LESSON - Protect your rental income - Would you cope with bouncing direct debits if your tenants cannot pay the rent on time? Make sure your tenants haven't got a history of rental arrears by referencing them.
3. Get Expert Advice
Landlords face over 70 pieces of legislation that affect their property portfolio, added to that legislation regularly changes. By using a professionally accredited and award winning estate like Northfields Estates you are assured that your property is meeting all the legal criteria. For example, did you realise that your rental property must have an Energy Performance Certificate (EPC) every time you change tenant? Did you know that the law on gas inspections has been changed? Are you registered with the Tenancy Deposit Scheme? If not, then you need to hire a professional to look after it for you.
THE LESSON - Changes in legislation mean that you could suddenly find yourself liable for hefty fines. An estate agents' fees are a cost effective way of avoiding both the headache and the fines that resulting from unknowingly breaking legislation.
4. Choose the right agent
All agents are not created equal. Always look for an agent that is a member of professional regulatory bodies. Northfields is a member of several recognised bodies and as such are bound by the strict rules and high standards demanded by the National Association of Estate Agents (NAEA), the National Approved Letting Scheme (NALS) and the Ombudsman scheme. Just as you would choose an ABTA travel agent, you protect yourself from sharp practise and guarantee expertise by using an estate agent with membership of these organisations.
Another way of ensuring that you are getting an agent who uses best practise is to look for industry awards. The awards we have won for training and developing our people and for our unmatched lettings service are evidence of our dedication to achieving top quality standards, and to providing our customers with outstanding expertise and service. Click hereto read more about our multi award winning record.
THE LESSON - if the agent is a member of professional bodies and has won industry recognised awards you can be assured of good service worthy of those accolades. Don't take chances with your property, use an agent who is acknowledged as the best.
For more information about our award winning letting service or to arrange for a free valuation call our Lettings Director, Silvia Eldawi on 0208 998 3111 or register your details here.
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