The Letting Fact File

Renting your properties out is a legitimate way of making a passive second income. It is passive because you don’t really have to do anything to earn the cash beyond your basic landlord duties. There are certain tips and tricks however that can make the whole process easier, especially if you are buying to rent.  You may have already considered all there is to consider, but these points can spark ideas and help you remember other key points that need to be well thought through.

Buy To Let

If you come into a property through inheritance, consider selling it and then buying another property to let out. By doing this you can target something more pertinent with a better outlook, meaning you’ll be able to charge a little more money. Do your research, check out the local markets, and even overseas markets. Invest in whatever real estate you think you can make good money on. At the moment the Palm Beach real estate forecast is looking good, so check out people selling due to the strength in the dollar. You need to be aware of forecasts and sales, look at money fluctuations. You need to first get a good deal on the property you’re buying but also ensure it is a good property to let out and that you’ll get a good monthly rental. It can sometimes be hard to tick both boxes but it is possible.

Get The Right Renters

Once you have your property you of course need to find renters. This isn’t as easy as you think, you need to ensure you and they get along. To get the renters you want you need to style the property appropriately. If you are avoiding young or student renters give it a premium finish which could price most of them out and attract families or professionals. You can choose the type of renters you want to ensure the relationship is a good one. Do background checks, ensure they can handle the money side of things and be able to pay you monthly. If they don’t seem reliable then don’t go ahead or you could end up chasing them for money.

Cover Yourself

You need to ensure you are properly covered. First, you need to charge a bond. The bond will give you money which you can use to fix the property. If there is something wrong with it that the renters have caused you have a right to hold it when they leave and use it to fix the property up. Some landlords also like their renters to pay the first month up front, which covers all kinds of issues and protects you. You also need to ensure you get good landlord insurance. This covers you in serious issues, for example, if a renter ruined your property. It sounds far fetched, but it does happen. It can cost a fortune. You do need to find one that suits your needs as a letter, for example one that covers all of your properties and it can be expensive, but it can get you out of a bind.

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Business Benefits: Benchmarking

Making an ascendance in the business world is a massive undertaking from a humble company that has ambitions above its means. The difficulties you can have as a startup or a small business doesn’t need to be discussed in any great detail. Bottom line = it’s difficult! But the big question to ask yourself is what can we do to improve ourselves? It is something you should be asking yourself on a daily basis. While making a transition from a small company to a bigger one is a massive undertaking and requires a change in personality and leadership as well as possible changes in location and scaling up the company, what you can do to better prepare yourself? This is where benchmarking comes in. Benchmarking is a process you can use to compare your business to others so you can identify areas you need to improve on. Here are some aspects you should look at if you want to see how you compare to bigger companies.

The first step in benchmarking, as it is essentially comparing you against another company, is to choose who to compare yourself to. There are support networks to help you pick the right company, such as Business Link or your local trade association, but the best method you can do yourself is to pick businesses that are of a similar size and have similar objectives to you. That way you can give yourself a reasonable yardstick to measure against, but also choose companies that are outside of your sector. These companies should perform well in areas that you wish to excel at, and by implementing their approach to your business, it will help you expand your own repertoire.

Look at the successes of your firm at the moment; is there one process that you pride yourself on? If you provide a service, it could be customer service that you are exceptional in. These are known as your business drivers, and by having a thorough understanding of your strengths, this makes benchmarking against another company an easier process, and one that you will get a lot from.  

Looking at your resources is a true benchmark of understanding if you can make the transition from smaller business to a larger company, especially if you are trading on your own or in a partnership. Do you have the necessary skills to take the business to the next level? There are many companies that provide training and skill refinement on topics like health and safety, employment law, or being a skilled leader, like Ellis Whittam, and these resources are as important as the physical resources. Look at your resources against the company you are benchmarking against, are they putting in more or fewer resources in staff or equipment? Are they spending more in other areas, like marketing or IT services? Resources are an important asset, and how you allocate them can make a big difference to your company.

Measure your productivity by calculating how much sales you make per employee. This is a relatively straightforward method of testing how much productivity your company is generating by focusing on each member of staff and understanding their worth to the company. However, this is not to say that your staff members could be the reason the product is not selling! If your sales are low across the board, this could mean that there is a problem with the product. You could be selling it to the wrong market, or the product is not right. Productivity can also be measured in how many customers return to you, which will highlight how good your customer service skills are in the business as a whole. You can also look at how long it takes to process orders and the amount of complaints.

Benchmarking is a process that can take some time, but it is a valuable approach to understanding how your business processes are making their impact. If your company is small, it can provide a valuable insight into what you need to ensure that you are trading to the highest possible standards. The process is not merely a way to glean ideas from other companies and pass them off as your own, it is a way to look at companies similar to yours and companies you wish to emulate the success of. You can implement successful strategies only if they really gel with your business processes. It can cause teething issues, but by looking at companies similar to yours gives you the best possible perspective on how it could turn out if you do implement them.

Making A U-Turn With Your Finances

In the event that you become bankrupt, you have to take some serious action. Getting into this position will usually take years of terrible financial management. And, can often leave people in a bad position. So, you need to work hard to make amends if this is your predicament. This process will be difficult. And, you’ll have to make sacrifices. It will be worth it in the end, though. To help you out, this post will be going through some of the things that can help if you’re bankrupt.

One of the hardest parts of bankruptcy is declaring it. This can take a long time through the courts. And, coming up with a good deal can be a challenge. Most people will struggle to fight for themselves in this sort of case. And, it’s probably not worth trying. It’s best to get a professional on the scene to help you. Wherever you are, you’ll be able to find a bankruptcy attorney to help you with your case. They will be able to give you advice to help you get the very best possible outcome from whatever court proceedings you have to attend. In most cases, you will still have to pay back some money. But, they will help to make it as manageable as possible. This can be a great boon if you are out of work or on a low salary.

Next, you need to start learning how to manage your money. This may be a requirement of your settlement. But, even if it’s not; you’re always better off doing it. You can get someone to help you with this. There are loads of people practicing in the field of financial management; who can get you started on the right track with your money. Most people will struggle to budget for themselves. But, having someone else monitor your money can be a great way to make sure that you’re not spending too much. During this time your finances will be very volatile. You have to do everything you can to make sure that it becomes secure again. And, that will often mean simple saving.

Saving money will be hard for most people. But, it has to be done at all costs. Or, as little cost as possible! You should cut out the non-essential parts of your life. This will probably save you a lot of money. Make sure that you track exactly what you’re spending, to give yourself an idea of your current finances at all times. And, make sure that you have a budget in place so that you don’t overspend. It’s easy to get into a routine with money. And, once you’re in one, it will be a lot easier to save and look after your hard earned money.

Hopefully, this will give you an idea of what needs to be done if you find yourself in the position of bankruptcy. Most people will panic in this sort of situation. But, it’s best to remain cool and avoid stress. Most people will manage to get out of a situation like this; if they put the work in.