How can landlords survive the recession?

With the economic downturn and buy-to-let mortgages at an all time low, how can landlords be expected to survive the recession?  Many landlords stretched themselves on their mortgage during the property boom and many are now struggling.  Here are a few mortgage tips for landlords:

  • Check the tenants: this has always been a good start for any landlord, but in today’s economic climate it is more important than ever.  Renting a house to an estate agent used to be a secure thing, but is no longer the case.  Make sure you complete the usual tenant references and any extra ones available
  • Get a rent guarantee: not all landlords bother with rental insurance, but as unemployment is higher than it has been in years, you need to consider what you will do if the tenants cannot pay the rent and therefore how will you pay your mortgage?
  • What is your estate agent doing: if you’re renewing a tenancy contract or looking for a new tenant, consider using one of the many internet portals available rather than the traditional estate agent or at the very least, manage the property yourself to save on rental fees
  • Overpay the mortgage: there are fewer buy-to-let mortgages available now and your credit rating is important.  If you are benefiting from lower interest rates on your current mortgage then overpay where you can
  • Advice: good advice is hard to find, but make sure you stay fully informed and up to date.  There is a lot of legislation applying to landlords from taxation to updates on gas inspection and Energy Performance Certificates (EPC) so make sure you stay up to date to save where you can and avoid any unnecessary fines or charges
  • Use a mortgage advisor and shop around: when it comes to the end of your current buy-to-let deal, be certain you are getting the best mortgage deal available for your circumstance and consult a mortgage advisor

Posted on May 9, 2009

Related News

Posted by Michael | Filed Under Advice & Tips 

Comments

4 Responses to “How can landlords survive the recession?”

  1. Adrie van der Luijt on May 11th, 2009 1:12 pm

    I am the author of a similar article. To read this and my other articles, please visit http://www.smartlandlord.co.uk/Seven-key-steps-that-landlords-should-take-now246.aspx. Thank you.

  2. Peter Jones on May 21st, 2009 9:11 am

    In these economic times, insurance is the only way to protect yourself. You may find that you have to spend more money than you used to but you have to ask yourself whether you could survive if something went wrong.

    My advice is do not try and save money by stopping insurance policies, but to protect yourself from further financial loss by ensuring you are fully protected in all areas.

  3. EPC London Landlord on June 8th, 2009 1:50 pm

    insurance i guess is the only way… and dig deep!

  4. Discount Landlord Insurance on September 28th, 2009 9:19 am

    Landlord insurance can protect buy-to-let investors under the economic recession. Many landlords try to under-insure or cancel their landlord insurance as a money-saving option. However, by under-insuring or not having a landlord insurance can end up costing landlords more when accidents happen.

    Thus, it is advisable to look for the most suitable landlord insurance for the rented properties.

Got something to say?