3 Landlord Tips for Navigating a Recession

As the economy slows, landlords understandably get nervous about their investment properties. While you may feel at the mercy of interest rate rises and changing tenant circumstances, there are numerous steps you can take to safeguard your finances.

Although you might feel the pinch in your back pocket, you don’t just have to pull up sticks and sell. Instead, you can secure your tenants, review your mortgage, and reduce costs. Below, we consider these ideas in more detail.

Choose your tenants wisely

If your current tenants decide to leave, in uncertain times, you need to be extra careful when choosing your next occupants. As the cost of an empty investment property can hurt quickly, chopping and changing tenants frequently is an easy way to increase your financial concerns.

Instead, always conduct rigorous checks on incoming tenants to give yourself the best chance of establishing a happy relationship. If your existing tenants are reliable, it’s often in your best interests to ensure they remain satisfied.

Keep in touch

An economic downturn isn’t just harsh on many landlords, but most tenants too. If you discover your tenant is worried about their financial situation, forging open lines of communication helps you stay in the loop to plan for any eventuation.

Although tenants falling behind on rent is never a good thing, it might be more costly in the long run to try to replace them. By showing your tenants mutual respect, you can make your life as a landlord much easier.

Review your mortgage

If rising interest rates are causing you concern, you need to take action with your bank as soon as possible. Rather than just stressing about your mortgage and whether you can make the next repayment, you need to discuss the situation with your lender.

While many assume banks are looking to repossess homes at the earliest moment, there’s plenty of incentive for them to help their clients that encounter financial pressure. Review your home loan regularly to see if you’re paying the best rate.

Reduce your costs

It sounds simple, but reducing your expenses is one of the most straightforward ways to navigate a changing economic landscape. Although worrying about your bank balance is never nice, cutting out some luxuries can help you navigate a tricky situation.

Some of the biggest avoidable costs include takeaway dinners, alcohol, and subscription services. You might not think it adds up to a lot, but at the end of the month, the sums you’ve saved can be significant.

Speak to the experts

Get in touch with the experts at InStyle Property Management to receive dependable advice about your rental properties. Our highly experienced team will help you make the right decision regarding your investment property and tenants.