We have all become accustomed to headlines about the rise of property value. House prices alone since the start of 2014 have risen by 20% in London; with the value of property rising faster than wages. It would be a misconception to assume that private landlords are doing well for themselves. Reason being rental rates are not a true reflection of property value, instead they are more likely to be driven by wage levels. Consequently, if tenants are not seeing significant growth in their incomes, they won’t be willing to pay more of their salary in rent.
Property letting expert Kate Faulkner explains: “The latest data from the Office for National Statistics shows that rents in Britain rose by one per cent in the 12 months to December last year. Regionally, rents grew most in London by 1.6 per cent, and by one per cent in South-East, while in most other regions they grew by less than half of one per cent. If inflation is going up by two per cent, this potentially means that, as a landlord, your rent is only rising by half as much as the cost of living. For those relying on rents for income, this isn’t great news”.
So with rising property prices and below inflation rent increases, added pressure is on landlords. Making the efficient management of cash flow and the accurate calculation of rental yields more important than ever. Especially when more than one property is owned, with multiple tenants and mortgages to go with it.
With more regulatory changes expected in the future, such as the tenants fees that came apparent in May this year. Landlords must keep on top of their finances while also monitoring maintenance schedules and keeping important dates linked to their rental agreements. This is where Direct Line for Business’s have stepped in with their new Mobile Landlord App. What has been specially designed for busy private landlords, some of the app’s key features include:
- A finance section that allows landlords to calculate their rental yield and track income and expenditure by both the rental contract period and the tax year.
- A one-stop place to securely store tenancy details.
- Regular updated articles written by private letting experts covering all aspects of buy to let mortgages.
The app is free to download for iPhone and Android phones, it allows landlords to manage up to five properties; all information inputted in the app is kept safely and are not given to third parties.