Inflation is high, VAT is up and costs in general are rising significantly. It’s a good time to take stock of what you’re spending as a landlord and make sure that you’re running as lean and agile an operation as possible. Do you really know exactly how much you’re spending every month?

Reviewing your expenses can mean finding savings or just making sure you’re getting value for money. Either way, making sure that all spending is essential is a good discipline and helps you on your way to greater profitability. Every penny saved goes straight to the bottom line.
 
One reason it’s particularly vital for landlords to keep a closer than average eye on costs is because they can’t be as flexible on raising prices (rents) as other businesspeople. A shop can raise a price with relative ease. For a landlord it’s a process governed by law with the specifics likely laid out in the tenancy agreement you have with your tenants. It will probably take you a few months and a fair bit of communication to put the rent up.
 
What costs should you be looking at? Everything. If you use a lettings agent they’ll take a significant chunk of the rent and likely your profit. Ask yourself if you really need them. Upad can do all your advertising and you can do the rest yourself.
 
If you’re self-managing, keep a list of everything you spend as a landlord from the petrol you through to expenditure on property maintenance, whether one-offs or regular. When it comes to something like window cleaning, for instance, could you be saving money by doing it every other month rather than every four weeks?
 
And make sure that your accountant is paying his or her way. Ensure that you’re accounting for all your spending and making use of all the allowances available. Your accountant should also be able to advise you on specific allowances that will help you cut your tax bill. A good accountant can save you more in tax than you’ll need to pay them. After all, who doesn’t want to pay less tax?

Related posts:

  1. House prices to fall ’20% in two years’: Joblessness and spending cuts stifle demand
  2. How the Comprehensive Spending Review will hit landlords
  3. UK spending cuts means higher rents and more private rental properties, experts believe
  4. Landlord rent ‘costs students £77.20 a week’

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