What has the current climate with the interest rates and rising cost done to landlords?
I have many questions around how to deal with the rising cost with rental projects. Mainly because people are afraid to ask for more rent from their existing tenants. The truth is we are all in this together as costs rise across the board.
Having a solid investment property in the first place massively helps with this. What I mean by that is to have a very strong profit and loss and that you are maximising your cash flow. This allows you to have surplus funds for such situations.
Many people hide the fact that they don’t make money on property. This is because a lot of information out there is only purely just on property itself and not anything to do with business. If you want to do this efficiently and effectively, running it as a business is crucial.
What are some things that you can do?
✔ Have a well maintained property every time you renew a tenant or an agreement makes a slight increase
✔ Help incentivise people in your property to manage their energy costs
✔ Protecting yourself with a clause in the tenant agreement that if a rise above a certain percentage takes place that they are liable for the difference
Amazing isn't it?
What you want to be doing is making sure that your business is profitable and being on top of the numbers meaning having a PNL per company and per property. It’s essential and we always make sure the people in our community are doing this. This has transformed many peoples businesses and allows them to still thrive through these changing times.
Do you want to focus on what you do want in life versus what you don't want?
Comments