Buy-to-let is a popular and potentially profitable way to invest funds. With the property market’s reputation for relative security, more and more people are choosing buy-to-let over other investment options such as stocks and shares. Of course, getting the best out of an investment involves a mixture of maximising returns and minimising outlay. There are several steps you can take to reduce spending on your buy-to-let investment.
Review Insurance and Utilities
It is often possible to save money on regular expenses such as landlord’s insurance and, if you are responsible for them rather than your tenants, utilities. Every time you come to renew or reach the end of a contract, research the market and see if you can get a better deal with another provider. The best deals are often reserved for new customers, so never automatically renew.
This area is particularly notable because if you transfer to an equivalent plan, you are not compromising or losing out in any way. You will receive exactly the same utilities or insurance cover, but will spend less. Price comparison sites are a great way both to find the best deal and to ensure it really is equivalent.
Watch Your Spending
Simply taking a close look at your spending can reveal expenses that would otherwise go unnoticed. Small costs, in particular, can frequently go ignored but can soon mount up. Look closely at your bank statement each month, and run through each individual item. See if you can identify any areas where spending could be reduced or eliminated altogether.
If you ever pay for any expenses relating to your property with cash, you will find this a bit harder to keep track of. Nonetheless, it is worth trying to keep an eye on where money goes and thinking about whether these costs can be reduced.
Maintain the Property Thoroughly
Both landlords and tenants find it easy to ignore minor repairs that a property might need. However, doing this can result in problems worsening. A bigger problem will cost more to fix, and if it ends up with an emergency call-out this can be even more expensive.
Make sure that the property is kept well-maintained and that all necessary jobs are completed promptly even if there does not seem to be a rush. This type of preventative maintenance can prevent costs from soaring. It can also, in extreme cases, prevent a property from becoming temporarily uninhabitable, in which case you would have to refund rent.