Three things landlords must do to survive 2024

I have freely shared that I will only accept new tenants with guarantors, and I am now taking much longer to choose a suitable candidate for my properties. 

In addition to referencing, I’ve also started to experiment with applicants providing a personal profile so that I may further understand how the property fits with their longer-term plans.

As difficult as the cost-of-living is, I have not ignored nor shied away from rent increases. I pride myself on rewarding long-term good tenants with a discount, however I do increase annually and will keep in-line with market rents – albeit with a significant reduction.

With a potential change of government on the cards, I also have to be prepared for some existing properties not to make the grade. 

In the future we may see a reversal of the U-turn on EPC regulations, the introduction of rent controls and a further increase in taxation. 

These will directly impact some properties meaning their viability will no longer be sustainable and thus will be sold. It’s too early to make a decision yet, but I’m aware and am prepared to take the necessary action. 

Keep an eye on costs

With mortgage rates coming down, it’s a good idea to set up alerts and be ready to pounce when a good deal becomes available. 

For me, I’m now on the hunt for some decent five-year fixes, although I would prefer to start fixing some at 10 years to ensure I have security in knowing what my payments will be.

Many landlords will have experienced a huge spike in building insurance, and I would recommend using a broker to secure the best deal and coverage. 

My broker secured me a competitive deal with my existing insurance company and it was only a single figure percentage increase.

With the ever-increasing costs of materials and labour, it’s key to examine every project cost. For example, I have now started to replace only half a kitchen (usually the bottom half), rather than replacing an entire kitchen. 

I tend to choose a bolder colour choice to make the most of the new two-tone theme. I’ve also been inspecting carcasses more and changing doors and worktops which see the most usage, rather than a full replacement.

I’m fortunate to have a good network of plumbers but prices have still sky-rocketed, meaning on some properties I’ve taken out boiler cover policies to avoid too many unexpected expenses. 

Where a boiler needs a major repair, I’ve also been reviewing replacements, especially given the potential changes to EPC regulations, and many new boilers come with 10-year warranties.

Ensure properties are at a decent standard

The plans to introduce the Decent Homes Standards to the private sector has been rather overshadowed by the Renters’ Reform Bill. 

Understanding these changes will be key for landlords because there will be a legal duty to ensure standards are met. 

Currently, the obligation is on local councils to identify hazards in private homes and take enforcement action against the landlord. 

The new rules will require landlords to be more proactive and will likely include a list of items that need to be kept in a reasonable state of repair to reflect modern needs, along with new standards for damp and mould. 

As yet there are no finalised plans, however landlords should be aware that minimum standards will likely be introduced.
On the face of it, the coming year may seem daunting. 

However, demand for properties continues to soar and for those landlords who want to remain in the market long-term there are many opportunities to build a decent, profitable business.