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💰 Self-managed Landlords! Top tips to keep your cash flow in shape đŸ‹ïž‍♀

Before you buy

✅ Work out 'acceptable' gross yield by dividing annual rent by purchase price 🧼
✅ Example: £12,000 rent a year on a property bought for £200,000 gives a gross yield of 6% 📈
✅ Compare with leaving your £200k in a bank (around 1% interest!) đŸ˜±
✅ Gross yield guide: 5% = Acceptable 6%-8% = Great 8%+ = WHOAAAA! ⭐
✅ Gross to net calculation - use 9 months rent instead of 12 🧙‍♂
✅ Prepare 1 month void per year, 1 month maintenance and 1 month Letting fees đŸ€”
✅ Effectively, £1,000 rent = £9,000 approximate net income per year đŸ’¶
✅ NOTE: you can SIGNIFICANTLY increase your Return on Investment by using a BTL mortgage, for a real 25.1% example click here!! https://lnkd.in/eQervpw đŸ“©

Rent Management

✅ Run your Tenancy 12 month fixed to expire August/September - these are the busies times for finding new Tenants and therefore you'll reduce void during Tenancy transfer 🚌
✅ Increase your rent - 10% is an acceptable level đŸ’č
Consider pets (with relevant clauses in Agreement) - rent can be increase further! đŸ¶
✅ Only accept Standing Order payments and handle late payments immediately ⚡
✅ Use float balance throughout Tenancy - putting £50 aside each month soon adds up! 👍

Property Management

✅ Invest in making property more efficient - saving your Tenants money on utilities means they have better cash flow, which means rent on time 💡
✅ Maintenance is a lot easier on cash flow if you're preventing instead of waiting for things to go wrong - so pop round and actively look for potential issues 👀

Managing your outgoings

✅ Do not pay for dilapidations that are down to your Tenant! Keep a strict record from the start to ensure you have the evidence needed to go to adjudication if needed 📋📾đŸ“č
✅ Review mortgage deals, insurances and other expenses yearly 📊
✅ Move your Rent Due date a week before your mortgage goes out 📆

🙋‍♀ Are you looking to buy an investment property? Do you have a current investment that's not performing as it should? 🆘

LATEST INVESTMENT FOR SALE | Foxhall Road | NG7 | 3 flats | Rented at £17,880 per year | 5.7% yield | £310,000 https://cavendishproperty.co.uk/sales/property/216/foxhall-road 

Speak to our team today, when it comes to MAXIMISING your return it's what our EXPERT team does best! đŸŠč‍â™€ïžđŸŠž‍♂

☎📧🗹

#cavendishexperts #landlords #howtorent #investinginrealestate #investinginproperty #landlordsuk #landlordtips National Residential Landlords Association - NRLA ARLA Propertymark #investement #lettingsagent

Posted 05 August 2021
by Ali Baylav Managing Director Cavendish Residential

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