If you’re a landlord who is considering expanding your property portfolio, you are not alone. According to a survey from Landbay, 44% said they are looking to invest in property in the next 12 months. * This is an increase of 12% compared to the same survey conducted 12 months prior. In fact, over six out of ten landlords planning to buy said they were doing so to expand their portfolio. *

Confidence is high  

The fact that so many landlords feel confident in expanding their property portfolios is a testament to the rental market's current strength. One of the primary reasons for landlords to be confident is the strong demand for rental properties. This demand is expected to continue growing in the coming years, providing landlords with a steady stream of potential tenants. Plus, as property prices rise, property values appreciate. This gives landlords the opportunity to increase rental income and maximise their return on investment.

The benefits of expanding your portfolio

Increased cash flow

One of the main benefits of expanding your property portfolio is the potential for increased cash flow. By purchasing more buy-to-let properties, you can generate more rental income each month. You can use this income to help offset any mortgage payments and expenses associated with maintaining the properties. As you add more properties to your portfolio, your overall cash flow will continue to rise, providing you with a stable source of income.

Property appreciation  

Property appreciation is another significant benefit of expanding your portfolio because your total return on investment should increase as the value of your property rises over time. As properties become more valuable, landlords build more equity, giving them more options to reinvest in more properties or negotiate better mortgage terms.

Diversifying your investments

Growing your property portfolio also allows you to diversify your investments. By spreading your risk across multiple properties in different locations, you can protect yourself from market fluctuations and unforeseen events that may impact an individual property.

Tax benefits

Owning multiple properties can also provide you with various tax benefits. Rental income is typically taxed at a lower rate than other types of income, and you may be able to deduct expenses related to property maintenance, repairs, and mortgage interest.

Leveraging  

You may be able to use your existing properties to help buy new ones. By using the equity in your current properties as a deposit or collateral for a new loan, you can expand your portfolio without having to worry about raising additional funds upfront.

How your agent can help

Working with a knowledgeable agent can massively help you expand your property portfolio. These professionals possess a detailed understanding of local market trends, rental yields, and landlord regulations, enabling them to offer valuable insights and strategic advice. An agent can also assist you in identifying exciting investment opportunities, negotiating favourable deals, and managing your properties efficiently. With their expert guidance, you can stay informed about industry updates and grow your portfolio with confidence.

Landbay*

Whether you are highly experienced in renting or not, there is always something new to learn. So here are a few tips to help make your move go as smoothly as possible.

Think about what you need from your next property

It’s much easier to find what you are looking for when you know what you want. Consider the area, the type of property and any additional features you require in your new home. Start your search in good time and get familiar with what’s on the market. By doing this, you can ensure that you are looking for the most suitable property for yourself.

Talk to your agent and be ready for

Now that you have decided what it is you are looking for, talk to your agent. They will be able to send you any properties that become available. When they do find a property suitable to your needs, it's best to be ready for viewings. It’s no secret that there is high demand for rented accommodation, so you want to be able to act quickly when the right property appears.

Have your paperwork to hand

Missing out on a property you really like because you were not prepared isn’t a nice feeling. To ensure this doesn’t happen to you, check that all your paperwork is to hand well before your move. You may need things like photo ID, proof of your address and employment. If you are using a guarantor, you need to have an important conversation with whoever you choose.

Prepare to leave your old property

Leaving your old property behind can become a lengthy process. If you are moving from another rented property, you want to get your full deposit returned. Cleaning, garden maintenance, and packing your belongings are often tasks that take much longer than you think. So, it’s important to plan your time carefully, as making an early start is worthwhile. Check gas or electrical meters before you leave because you don't want to get any bills that do not belong to you.

Understand your rights and responsibilities

You may already be familiar with your rights and responsibilities as a tenant. If you’re not, here is a reminder of the main points outlined on the GOV.UK* website.

Your rights include

• It is your right to live in a property that is safe and in a good state of repair.
• Have your deposit returned at the end of the tenancy and be protected from unfair evictions.
• Your right to challenge charges that are considered excessively high.
• See the property’s Energy Performance Certificate (EPC).

Your responsibilities include

• Granting your landlord access to the property to carry out repairs and inspections if they have given 24-hour notice.
• Taking good care of the property.
• Paying any bills that you have agreed to with your landlord that are your responsibility to pay. For example, energy bills or Council Tax.
• Paying for any damage or repairs that have been caused by you.

Get to know your tenancy agreement

Understanding your tenancy agreement is important. Some go into more details than your statutory rights and may include other points outlining the tenancy length, the date it began, notice periods, and so on. Your agent can guide you through any queries you have about your agreement or anything that is not outlined in it. A good rule of thumb is to check first, particularly when it comes to tasks such as decorating. You will also need to know which appliances and furnishings are provided; it could be that the property is fully or partially furnished.

Consider renting an agent-managed property

You don’t have to choose a fully managed property to benefit from deposit protection schemes or the continuous support of your agent. Many agents offer part managed properties. If you are renting through an agent, they will be a huge help. From finding your property, placing your deposit in a deposit protection scheme, arranging references, and more. If you choose a fully managed property, you will have 24/7 year-round maintenance support included.

GOV.UK*

It’s no secret that the cost of renting has increased significantly in recent years, and much of this has to do with supply and demand and the increasing costs of borrowing for landlords. The market is steadily improving but there’s a lot that landlords and tenants can do to keep costs down.

Tenant tips that may help to manage costs

Use smart meters

If the energy bills are in your name, you are entitled to choose which energy supplier you use. You may also choose to have energy metres installed. This could track and help you to reduce energy consumption. Limiting energy waste, even if bills aren’t included, will keep you on good terms with your landlord. Using energy-efficient appliances will also help.

Choose an energy-efficient property

Sometimes it’s hard to find a property that meets all your needs. As well as having the right number of rooms in the right location, you should also place importance on the EPC rating of the property you are looking to rent. The higher the rating, the more energy-efficient it will be. This will more than likely be a sure sign that the property is in good condition.

Set a budget  

A property where you feel happy is a home you can enjoy. This could mean more entertaining at home instead of feeling like you have to go out. Planning your monthly expenditure and cooking at home in a decent kitchen might create room for more savings. Having food shopping, energy usage, and entertainment budgets can inspire creative and fun ways of living.

Find the right property

Registering with a good agent so that they can send you details of properties that are about to become available always helps in your search. You can discuss your requirements and then peruse potential matches that appear in your inbox. If you choose a fully managed property, you could benefit from year-round, 24/7 maintenance and support.

Landlord tips that may help to reduce costs

Regularly review mortgage costs

As a landlord, you want to keep the cost of any buy-to-let mortgages to a minimum. Getting the right advice from a good mortgage advisor could help with this. Some landlords have reduced the size of their portfolios to reduce borrowings. Others have chosen to expand with the expectation of lowering interest rates, buying up properties that are being sold by retiring landlords.

Check tenant credentials thoroughly  

Whether you are expanding, contracting, or beginning your buy-to-let portfolio, screening tenants is vital. You do not want to place tenants in your property who may not be able to pay the rent. There are insurance policies that can help with this situation. Getting reliable and referenced tenants can reduce this risk and the potential costs spiralling.

Improve your property and keep on top of maintenance  

Making your property more energy-efficient could mean higher rents. If your property is in good condition and highly presentable, it will be more desirable. You also want to keep on top of maintenance issues before they become expensive problems. Good properties usually attract good tenants so taking this approach will help the process go more smoothly.

Choose a managed letting service  

You may view a part-managed or fully managed letting service as another expense, but it could save you money. Managing a property can be time consuming. From maintenance and inspection to referencing tenants, there is a lot to do. Having an expert team take care of things gives you more time and the peace of mind that everything will be carried out in a compliant and efficient manner.

Final thoughts  

The media portrays a negative and fraught relationship between tenants and landlords. The reality is that tenants and landlords face similar challenges that stem from the same issues in common. Often, a good letting agent can bridge the gap by helping to set better standards for both parties.

Selling your home often causes a flurry of questions to surface in your mind. If you are moving and are selling your home with a mortgage, here is a guide to help you understand the process and some answers to the questions you may have.

Can you sell your home with a mortgage?

Yes, you can still move even if your mortgage term is not complete, or your outstanding balance is not settled. In fact, you have a number of options going forward. Unless you are in the fortunate position of no longer requiring a mortgage, your choices will depend on affordability and your mortgage provider's terms. One such option could be to port your mortgage.

Can you move home with the same mortgage?

Some mortgage providers may allow you to move with your existing mortgage. Known as porting your mortgage, this may be a way to defeat higher interest rates, although mortgage providers' terms differ. You will, in any case, have to apply to your current mortgage provider if you want to port your mortgage. You may be able to borrow more, although this could be at a different interest rate than that of your current mortgage deal.

How do you go about selling with a mortgage?

You may be planning on settling your current outstanding mortgage balance and taking out a new mortgage deal on the house you are moving to. If so, your mortgage will be settled after you sell the house you are moving from. This is where your solicitor and mortgage advisor can be worth their fees. Many agents will be able to connect you to either, but it’s entirely your choice as to whether you use their services or choose your own property professionals. Discussing your moving plans with a mortgage advisor initially will help you decide the best route to take.

Is it better to get a new mortgage when you move?

You may find that you may not be able to port your mortgage. On the other hand, if interest rates are lower than your current deal, getting a new mortgage deal could save you some money on your monthly payments. If you are moving to a much greener, more energy-efficient home, you may be eligible for a green mortgage which could offer more competitive rates. Your individual circumstances and property will differ from those of other sellers and buyers, so it is important to give accurate details to your mortgage advisor. Such information as the outstanding balance and the current interest rate of your current mortgage will be required.

A good agent is a good asset to have on your side

Many people sell their homes with mortgages. Mortgage advisors, mortgage providers, and solicitors are well-versed in this process, so there is nothing to stress about. More than likely, you will port your existing mortgage or take out a new deal. A good agent will help you make the most of this process by being there to guide you and get the right value for your home. They are also invaluable when it comes to finding a property that gives you the features and space you want, in your desired location, and that works for you financially.