With the letting market softening , tenants demanding lower rents because of greater choice , maintaining occupancy become a challenge.
For most Investors, rent returns just about meet their mortgage payments. This narrow margin means that void periods eats into their their balance of payments - and peace of mind. Most landlords coast along, with rents sufficient to have the property ' wash its face', relying on capital appreciation over say - 3- 5 years to borrow a bit more on the increased collateral. Enough, say, to pay back subsidies you gave the property out of ' reserve fund', i.e. . your own pocket.
In the last year that 'gearing' has changed .. The massive spread of housing currently on the market, affordable to most wage earners , plus migratory drift out of Dublin , means Landlords have to be competitive in attracting tenants.
For what it's worth, here are my own solutions, broken into piecemeal DO and DO NOTS...
1 DO make the property attractive. Molly maids, Oven-clean and Carpet shampoo- are worth the hire, as a preliminary to a full painting job AND a make-over of furnishings. Even if its costs say, three grand to have the place refreshed you will get a decent tenant - and put your own balance of payments back on track .
2. DO spend on bed-linens, towels, lampshades, prints and pieces .. If you are a Male (un-gay) you have NOT a clue about comfort zones of bedspreads , cushions, soft lighting and fashionable decor. Give a female friend a budget for a once over - if without female friend, go to Dunnes Stores household dept and educate yourself 3 DO look for a long-term tenant. Budgeting a modest make-over - say about a quarter of annual rent - will likely deliver a tenant for a year , which will pay back some of the outlay 4 DO follow your instincts in choosing a tenant. As renters have more choice, you are entitled to make a choice of tenant . References are hardly worth the paper - a tenant could be model employee for someone else but a slut and slob in your property. Trust your judgement on someone's character - it's usually right when your property is at risk 5 DO accept a void period. Put it to good use and spend the time refurbishing - then you have no excuse for not getting a tenant - 6 DO N OT take any tenant for the sake of occupancy. A bad tenant is more costly then a vacant property: plus the incalculable cost of wear-and-tear on your temperament.
7 DO NOT take ' a friend of a friend' because you're stuck for a tenant. If they turn out to be seriously deranged)you will have to get rid of them . And the friend , all in one go....
8 DO NOT take losers. You know what I mean. Losers will take out their resentment on your property - and on you. How do you recognise a Looser? If you have to ask, you already are one....
9 DO NOT take young students of either sex. They will spend the rent money on drink and not answer the door when you call. Do you want to be out in the street once a month, shouting "I know you're in there...!' 10 DO NOT PANIC - somewhere out there is your Ideal Tenant, who is searching for you, their soul mate Landlord, provider of Shelter, Guide for Life . You just have to find each other.
