As most landlords will testify, “it used to be so much easier”.

However, while there is now more red tape, and there are more fees and costs to throw into the equation, it’s still possible to make a healthy profit whilst letting property, despite what some of the experts might say.

We will now take a look at some of the best ways you can bolster your profits from property.

Cut out the middleman

Many landlords use letting agents to help manage their property, but this can be an expensive way to go.

By using an agent, you are not only paying their fixed fees, but you are also giving up a percentage of your rental income.

If you manage your property yourself, you can keep all of the rent, and you also won’t have to pay any agent fees. Are there drawbacks? Of course, this is not a solution for every landlord. However, if you have the time and you’re happy to deal with regular communication with tenants, this is a simple way to boost your profits by at least 10% (i.e., the lower end of letting agent rates).

Increase your rent prices

This is a more obvious way to boost your profits, but it’s still worth mentioning.

If you’ve been sitting on the same rent prices for a few years, it might be time to increase them. If you don’t, you are limiting your earning potential significantly. After all, regulations in most countries prevent landlords from excessively increasing their rents, meaning that if you skip one year, you won’t be able to “make up for it” in future ones.

For context, if we look to the UK, there is no specific monetary guideline on how much you can increase rents. Instead, it is classed as what is “fair and reasonable“. In other words, instigating a significant increase could be challenged.

Think shrewdly about your taxable expenses

As a landlord, you are allowed to claim a number of expenses as tax-deductible.

However, many landlords don’t take full advantage of this fact.

For example, you can claim the cost of repairs and maintenance, as well as the cost of advertising your property.

You can also claim a percentage of your mortgage interest, as well as the cost of any insurance you have.

All of these expenses can add up, and they can help to reduce your taxable income.

Look into alternative ways to let your property

There are now a number of different ways to let your property, and not all of them involve the “traditional” approach.

For example, you could consider letting your property through a short-term rental service, like Airbnb. This can be a great way to attract tourists and other visitors to your area, and it can also be a lot more lucrative than a long-term rental.

Another option is to consider renting out your property to a company. A company will usually be looking for a longer-term rental, and they will also be willing to pay a higher rent price, as they can have access to tax breaks and other benefits.