Sign Up or Login


  • Five ways to cash flow as a buy to let landlord


Keeping the cash flowing is important in tough financial times for any buy to let business.

The value of a property portfolio is less important than making sure the mortgages and bills are serviced.

Landlords need to sharpen up their business skills and look at ways of maximising cash flow.

Here are five ways to keep that all important money coming in:


Increase the rent


Check out the local market – especially houses that compare with the one you are letting. Make sure your rent is in line with the market and if your property has extra benefits, like a conservatory or loft room that give extra space, that you are charging for it.


Cut your costs


Look at all the property expenses and see where you can save money in two ways – paying less or getting rid of a service.

Make sure your buildings and any landlord insurance is competitive. Cut expenses to the bone and if you can, transfer them to the tenant.

Repairs are a key expense here. One landlord just had a £500 quote from the letting agent for remedial work relating to damp and condensation. The property has never had a damp problem and when examined more closely, all the issues arise from the tenant washing and drying clothes indoors without opening the windows for ventilation.

The advice to the tenant is sort the problem out and use proper facilities for doing your washing or expect to be charged for putting things right when you move out.


Make your buy to let a home


Good news is tenants are staying in rented properties longer because they cannot raise funds to buy a home of their own. Encouraging tenants to make a property more homely without causing a huge amount of damage gives tenants ‘ownership’.

For instance, some landlords let tenants redecorate children’s rooms – providing the house is put back to the original state when they leave.


Manage your own business and tax


If you have a couple of properties owned with a spouse or partner, then keeping tax records and filling in tax returns is quite straightforward and can save several hundred pounds on accountancy fees.

Likewise, if you have the time and inclination, just use a letting agent to source and check tenants and manage the properties yourself.


Cut your losses with poor performing properties


Sometimes it’s a better financial decision to cut adrift poor performing properties rather than let them drag the rest of you portfolio down. Conduct a ruthless review at least once a year and if you have a property with a large, expensive mortgage, look at selling to consolidate.