There are many things landlords need to consider when running their business, but if you don’t manage your cash effectively, you leave yourself open to big trouble. Therefore, it is vital you manage your cash flow, and this is something we recognise at Thomas Morris.
We’ve worked with landlords for many years, so we know there is a lot you can do as a letting industry professional to manage your cash flow. If you are looking for guidance in this matter, we are more than happy to help you.
Also, we know there are many specialists operating in this field. Recently, Kevin Winterburn from Sheards Accounts spoke with the Landlord Today site, and they offered a range of top tips to ensure your maintain your cash flow in a healthy condition.
It is important to realise that cash flow can change quickly, so it makes sense to review your situation regularly.
Be prepared for a turnover in tenancy
Even when things are going well, you should prepare yourself for problems that arise. If a tenant moves out, you face a void period, and these are damaging to landlords. Ideally, you should put money aside each money that will buy you space and time if a tenant leaves. You should also review your options when it comes to replacing tenants, because acting quickly and decisively is helpful for all landlords.
Kevin Winterburn said; “You should also have a plan in place to fill vacancies as soon as possible, whether that’s investing in marketing or working with an estate agent.”
Take swift action when you receive late payments
When you are dependent on rental income to pay your buy-to-let mortgage, or manage your outgoings as a landlord, you cannot afford to allow late payments to become a regular fee. Your rental agreement should detail what happens when payments are late, and if you include punishments for late payments, you must follow up on these punishments.
While you hope that penalties act as a deterrent for tenants when it comes to rental fees, there will be times when you must impose these punishments. If you fail to act, the tenant is likely to re-offend, and this will lead to further problems for landlords.
Kevin Winterburn said; “If you’re a new landlord, handling late or missed payments might be something you haven’t experienced before, but it’s important to handle these as quickly as possible. Missed rent payments are an immediate disruption to your cash flow. Any hold-ups in addressing these with your tenant could lead to long-term cash flow problems.”
You need to maintain the condition of your rental property
Ensuring your rental property is maintained in good order keeps tenants happy, it encourages them to care for the accommodation, and it reduces your costs.
Kevin Winterburn said; “Add reminders in your diary to visit your property and conduct check-ups and little fixes. By having these visits planned out, you can prevent bigger issues from occurring. Early maintenance will save you money and improve your bottom line.”
If you are looking for help with any matter of the property or lettings market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.