Making Serious Money From Your Rental Properties

As a landlord, you are probably already aware of many of the ways in which you can expect to increase your profit from your properties. However, you might not have considered everything you could do on this front, and it is a good idea to take a look at some examples of the kinds of things you can do if you want your portfolio to bring you as much wealth as you like. The truth is that there are no ends to the things you can do to improve the financial strength of your rental properties. In this article, we are going to look at just a few of the best examples.

Increase Tenant Interest

It should go without saying that you need to be able to draw enough attention in order to boost your yield. You need to get interests from many tenants so that you can be perfectly positioned to increase the rent as much as possible. There are many ways to actually go about increasing the tenant interest in your local area. One is to use a letting service who already have a good backlog of interested and respectable tenants. Click here for rental properties which might be able to make use of that kind of service. You can also consider drafting up a perfect ‘target tenant’ – in other words, the ideal candidate for your home. That alone can ensure that you are doing everything in your power to increase the interest you receive from tenants, and so give yourself the ability to keep rents high.

Decrease Vacancy

For any landlord, the worst nightmare situation is when you have a number of subsequent tenants, rather than one who is keen to be there long-term. Increasing the tenant interest will help, as we have discussed above, but it is also a good idea to do what you can to try and find those who are happy to stay for along time. Having this decreased vacancy is one of the simplest and yet most powerful ways of ensuring that you earn as much as possible from your rental properties. It also means that administrative costs are lowered, making it possible to lower the costs for the tenant – and thereby making your property even more desirable in the marketplace. It all helps.

Interest & Fees

Most tenancy contracts will have written unto them that if rent is late there will be interest added, with the possibility of late fees too. You should have these written into your contract – but not just as a deterrent. You should also make sure that you do actually follow through with this, and that you don’t allow your tenants to not pay rent on time. This will help in the long run, as you might be surprised how often your tenants will pay rent late – and in the end these fees and interest will make a huge difference to your final income. It’s worth following through whenever there is this possibility, as it will help you to make serious money.

Source: https://blog.themoneyshed.co.uk/making-serious-money-rental-properties/

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Is Property The Right Investment For You?

Most people tend to assume that, out of all of the investment options out there, the best for those who are just starting out is property. One of the main reasons for this is that it’s one of the most risk-averse investment methods out there due to the fact that, while it can change quite a lot over time, the property market isn’t prone to the same kind of manic fluctuations that you see in other forms of investment. However, it’s a mistake to assume that property investing is somehow easy, because that’s simply not the case. However, just because there are challenges involved, that doesn’t mean that it’s somehow impossible for a beginner investor. With that in mind, here are some things to consider when deciding if property is the right investment for you.

Get the right guidance

When it comes to investing in property, the biggest mistake you can make is to assume that it’s going to be a simple process. The truth is that property investment, like any other investment, is far more complicated than a lot of people expect. If you want to succeed in the world of property investment, the first thing you need is the right guidance. Luckily, there are plenty of people online who can help you with that. People like Paul Ainsworth Lord are online offering investment advice for those who need it. Make sure that you do as much research as possible before you decide to jump into the world of property investment.

Decide what you want to do with the property

Of course, investing in property can actually take a lot of different forms, and it’s a good idea to decide which is right for you. One the one hand you can flip properties. This simply means that you purchase them, raise their value through improvements, and then sell them on at an increased value in order to earn a profit. The other option is to let the property out to tenants. Neither of these is right or wrong; they’re simply different investment methods and which you choose will depend on a whole host of factors including how much time you’re able to dedicate to maintaining the property.

Ensure that you can afford it

One of the things that get in the way of property investment for a lot of people are the upfront costs. Now, this doesn’t necessarily mean your ability to apply for a mortgage, although that’s certainly a factor. What it does mean is that you need to think about all of the other costs involved in both buying and selling properties which include everything from legal fees to the cost of decorating and deep cleaning the property.

The most important thing to remember is that, while it is certainly one of the least risky investment options out there, that by no means makes it risk-free. The reality is that there are no risk-free investments and if someone tells you that they have found one, they are either deeply misinformed, or they are lying to you for their own profit.

Source: https://blog.themoneyshed.co.uk/property-right-investment/

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The Rise in Popularity of the Serviced Apartment

Serviced apartments are a relatively recent phenomenon. They are fully furnished flats that have similar amenities to hotel rooms and can be used for either short-term or longer-term stays, offering a more home-from-home type experience. Some of the main benefits of staying in a serviced apartment as opposed to a hotel room are that they offer on average 30% more space, more privacy, and are more cost-effective in terms of there being no extra hidden costs and fully equipped kitchens reduces meal expenses. According to The Apartment Service, serviced apartments are around 15 - 30% cheaper than hotel rooms, adding to their appeal to businesses and the discerning tourist alike.

In recent years, the serviced apartment - a subsector of the hospitality industry - has grown more than any other temporary accommodation class in Europe. This can in part be attributed to globalisation and the needs for workers to travel more frequently to offices located out of town, and companies looking for less expensive ways to accommodate them. Also, families may have a preference to stay together and require a different set up to what hotels offer, in terms of wanting to keep an elderly relative close, having an office space to catch up on work tasks, or to allow older children more privacy.

The evidence of their popularity lies in occupancy rates. Serviced apartments in the UK averaged an 81% occupancy rate in 2016, and outperformed hotel rooms which stood at 77.2%. Amongst businesses, their usage is also increasing. According to a recent survey carried out by the Business Travel Show in November 2016, four in ten corporate buyers have reported that they would have used serviced apartments more by the end of 2016 than they did in 2015.

As we have mentioned above, serviced apartments are outperforming hotel rooms in terms of occupancy rates. Due to their cost-effective nature, they are becoming popular with companies sending employees on business trips, and those travelling for leisure who require more flexibility in their accommodation than what a hotel can offer.

Serviced apartment companies are relishing their success and are subsequently expanding at a fast pace. SACO are currently one of the largest operators of serviced apartments and over the past few years have made several acquisitions. Since the start of the year SACO have secured additional developments in London, Cambridge and Dublin, and a fourth is in the pipeline in Manchester. This demonstrates a confidence in the market, and indeed, a 2016/17 report by Savills predicted that 2017 would be "record growth" in terms of new developments in the UK. 

The distinction between serviced apartments and Airbnb.

Governments have been cracking down on Airbnb rentals, which in part allows for success in the serviced apartment market. Berlin has banned tourists from renting entire flats from Airbnb to protect affordable housing, and Airbnb are banned from listing short term rentals in New York. Serviced apartments differ in that they are not flats owned by individuals looking to achieve a supplementary income, but rather they are owned by a company with the sole purpose of renting them out on either a short-term or long-term basis to individuals who need somewhere to stay. Unlike Airbnb, the apartments are not someone else's permanent residence.

The crackdown of Airbnb rentals in some locations is allowing serviced apartments the opportunity to accommodate those who would have used Airbnb, further boosting demand for the units. 

Serviced apartments as an investment

Investors looking to invest in the serviced apartment sector will be enthused by its fundamentals. In terms of the specific investment, individuals will be looking for buildings with high quality facilities in good, central locations. Keeping in mind that the people who will use the apartments will be either business travellers or leisure travellers (or a combination of both), they will require easy access to transport links and the area's attractions and amenities. Due to stays being generally longer (research has shown that 91% of stays are of 14 nights+), residents will be reassured of a more stable income as their apartment will be occupied for a more definite period. The longer than average duration of stay, coupled with lower running costs, means that serviced apartments generally achieve higher net operating incomes compared to regular hotels. This helps to allay the worries of individuals considering hotel room investments but are concerned about the possibility of gaps in occupancy.

Sir Thomas House is an excellent example of an attractive investment in Liverpool. It occupies a city centre location close to Liverpool's bars and restaurants, attractions and transport links. Liverpool itself boasts not only a booming tourism industry but also a growing economy - home to the largest proportion of fast growing new businesses in the country. A report on the hotel industry in 2017 by PwC also identified Liverpool as a place that will experience growth in terms of revenue achieved per room, indicating an increased demand and willingness to spend more in the city. These factors ensure that there will be a sustained requirement for the apartments from tourists and business travelers alike.

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