How can landlords survive the recession?

May 9, 2009 by Brendan O'Neill

Advice & Tips

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

Written by

Brendan O'Neill

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