Why landlords in Scotland should be wary of short-term gains

05/08/2020 20:15:11

A two-minute read on why landlords need to think more about the long term than quick, easy wins.

One of the things we've learned during the Covid-19 experience is what's truly worth valuing.

The NHS superheroes have shown they are worth every penny.

As have the care home and retail workers who have kept things going during the toughest of times.

We've realised the enormous value of communities coming together to help each other.

And from a rental property perspective, it's been highlighted to landlords that getting and keeping good tenants is a precious thing to strive for.

It's something we've been saying at Scottish Property Centre for years.

When a landlord takes a short-term view to their property investment, it can often mean trouble awaits.

Without getting too deep, a lot depends on your letting agent's philosophy to the property business.

Some agents, especially in the past (the quite recent past) said things like: 'The rental market is so strong now; we can get you even more rent. So come on, let's squeeze those tenants for every penny."

We don’t like this approach.

And as Bob Dylan sang 'the times they are a-changing.'

COVID–19 has changed many things, but it's not swayed our belief that the smartest move a landlord can make (after instructing us) is to aim to find good tenants willing to pay a fair rent and strive to keep them, as long as possible.

If you hike up a person's rent whenever possible, it may mean more money in the short run but can be more costly in the long term.

Our advice to clients and indeed anyone thinking of investing in rental property is this:

In our 16 years of experience in the industry here are just some of the benefits a good quality, stable tenancy brings:

  • Fewer void periods
  • Fewer unnecessary repair or maintenance call outs meaning a reduction in the property's running costs
  • Good tenants appreciate they are being treated fairly and respectfully and they look after the property accordingly
  • Not to be underestimated is that when having a good tenant in your property you reduce your stress levels

Aiming only for the biggest monthly rent charge is, and always has been, in our opinion, a mistake. It means you could simply rent out your property to whoever is willing to pay the most and cut corners in the process.

But taking the time to find, vet and keep good quality tenants is, and always will be, the best way forward in the long term.

Thanks for reading and if you have any other property related questions, please get in touch with us – the team at Scottish Property Centre would love to help you.

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