Increased revenue for all landlords by 17.3%

We recently purchased a competitor who managed 220 properties, within 4 months of ownership we had increased the revenue for all landlords by an average of 17.3%. This was primarily done by analysing the entire portfolio against market rents. What we found was that the majority of properties that had tenants in for over 12 months had had a minimal rental increase of approx £20 per month. This is generally done due to various reasons from the managing agent or landlord, firstly its relatively easy to call a tenant and say the rent is increasing by such a small margin and takes a couple of minutes or perhaps a copy and paste email.

What we do at RedDoor is look at the current rent and then assess it against markets rents and comparables. What we found was that new lets were advertised at market rent yet renewals were not. We changed that. We found that their average rent of £896 per month increased to £1051.

This may take a lot more time to negotiate but these are investment properties and are there to produce a return. If they don't produce a good return it can very quickly become a liability instead of an asset. Investors need to make a return to cover maintenance costs to ensure that the properties are maintained to a good standard, withstand market conditions (i.e. interest rate increases, voids and non payment of rents).

We also look at other areas of the investment for you, the finance you have on the assets, are they on the best rate or deal, even if there is a redemption figure to pay it may be better and more cost effective to refine, are they owned in the most tax efficient manner and what are the biggest costs that are eating into you profit.