6 ways to make your buy-to-let budget go further

Whether buying for personal or professional reasons, turning a profit certainly matters. For landlords letting out property as their day job, or as a side hustle, those returns matter even more. In fact, a decent margin could mean the difference between you covering the cost of your buy-to-let mortgage, and having to dig deep and foot the bill yourself.

Thankfully, we’re here to help with six ways to make your buy-to-let budget go even further so you can keep more of that profit for yourself!

1. Consider your budget early

By this, we mean early in the buy-to-let journey. By keeping those profit margins in mind as early as your property search, you can buy cheap, and make more in the short and long term.

There are many ways you can keep your purchase below market value. This includes targeting highly motivated sellers, buying at auction, purchasing a repossession or fixer upper, and focusing on locations with strong rental demand and higher yields.

2. Hone those negotiation skills

Behind every great deal is a good negotiation, so work on those skills and don’t be afraid to use them to get the price you want. Here Landlord Vision shares their advice for negotiating your way to a more pleasing purchase price, and it all starts with knowing your seller:

“Driving without sight is no easy task. Equally, negotiating without understanding the motivations of the seller can be a recipe for failure. When viewing a property, try to arrange a viewing with the owner present. If not, take the time to build a rapport with the selling agent. It is important to determine why the owner is selling the property and how this may drive their decisions.”

They also recommend mastering the Ackerman Model, a tactic that’s straight out of the CIA’s playbook and a highly useful method of negotiation in any given scenario.

3. Be picky about your buy-to-let mortgage

Not all mortgages are created equal, with interest rates, fees and incentives varying drastically from lender to lender. By using a specialist mortgage advisor like us, you can find the best deal for your circumstances and secure reduced monthly payments.

4. Get tax savvy when letting

Are you claiming the reliefs and using the tax rates that you are entitled to as a UK landlord? While 2024 brought some major changes in the tax department for landlords, there are still several options to reduce your liability, and make your buy-to-let more tax efficient and profitable.

You could be eligible to claim Mortgage Interest Tax Relief, Replacement of Domestic Items Relief and Capital Gains Tax Relief. You should also make sure you are claiming all allowable expenses, such as utility costs, repairs, landlord insurance, and fees for your letting agent, accountant and solicitor or conveyancer.

5. Self-manage where possible

It’s a fact – using letting agents or professional property management companies can significantly eat into profits. If you can, manage the property yourself, handle tenant enquiries and use online platforms to advertise your rentals instead of paying agent fees. It could save you a small fortune!

6. Make void periods less likely

Void periods are another thing that’ll cost you an arm and a leg as a landlord. Every day your property remains vacant is a drain on your finances, so make extra effort to keep your tenants happy and your buy-to-let occupied.

When the time comes to find new tenants, be just as accommodating. Advertise early, take the time to prepare your let for its close up, be flexible with viewings, consider letting fully furnished for added ease, and even offer small incentives to attract tenants quickly and instil that trust from day one.

It all starts with a buy-to-let mortgage!

Whether you are new to the buy-to-let market or looking to grow your rental portfolio, we can help with a great mortgage deal to suit your circumstances and satisfy your bottom line. Get in touch with our buy-to-let specialists today to discuss your next steps.