landlord yield

 

 

While there is a high level of demand for rental property in the UK, landlords should be focused on improving the service they offer and in bringing in a greater level of income. Landlords should look to improve their rental yield and here are 6 top tips for landlords for improving your rental yield.

 

Improve the condition of your property

This seems like an obvious tip but it is one that is often overlooked by landlords when looking to improve their rental yield and impress potential tenants. Your basis steps should be to declutter the property, which creates more space and ensure the property is as clean as possible. A clean property is an attractive property but you’ll also find that a clean property encourages the tenant to take greater care of the property; which can minimise the need to clean or make repairs at a later date.

The better condition you have a property in before you present it to the market, the better the return you can expect.

Can you invest in the property?

This may be out of the reach of some landlords or it may not be a convenient option but an effective way to increase the rental yield is to improve the property. If you add a second bathroom or even create additional storage space, you’ll find your property has a greater utility for users and this means people will be inclined to pay more.

You need to consider your budget and the time you have available to you but if you can make improvements or upgrades at home, this could be a fantastic way to improve your rental yield.

Location is still crucial

Even ignoring the often-said “location, location, location” comment when it comes to property, there is no denying that where you buy is going to impact on your return. If you buy in an area that is very expensive, you’ll need to charge a high level of rent to make any money to cover mortgage payments. If you buy in an area that is very affordable, can you be confident that you will have demand for the property?

In an ideal world, landlords would be able to sniff out the next big thing, buying property at an affordable price and then seeing other factors in the market skyrocket the level of interest, demand and rental fees in the area. Of course, everyone would like this and the reality is that it is very difficult to predict what area is going to “take off” next.

So don’t focus too much on finding an area that is tipped to be the next cool thing but certainly look at areas that offer a good return and can allow you to invest with confidence. Examining the expected rental yields for a property is essential if you want to get the best level of rental yield without doing much additional work.

Think about the right tenant and appeal to them

If you are looking to improve your rental yield, you cannot just place any property on the market and hope for the best. There will be a demographic that is most interested in your property and who would be inclined to pay more money for a good standard of property in your area.

This means researching, or looking at the actions and tenants of other landlords, and determining who the best tenant for your property is. Once you have this tenant in mind, present and stage the property for their needs and reach out them in your advertising.

If you have a property that is suitable for students, offer reliable broadband and consider whether you can afford to offer term-time rental agreements. This will save tenants money (even though you can charge them more per month) while giving you holiday or short-term property options in the other months of the year. If you are likely to appeal to families, what can you do to make the property safe and interesting for families?

With your ideal tenant in mind, it becomes an awful lot easier to give them the property they desire and would be willing to pay more rent for.

Offer additional services

One good way to increase your rental income (and ultimately yield) is to offer additional services. Not every tenant requires a laundry service or would benefit from a parcel collection service, but some might. You’ll find that the tenants who require this service will be happy to pay for it and receiving this service will make them feel much happier about the overall level of service they receive from you, which may increase their likelihood to extend their tenancy. This minimises void periods while saving time and money in having to find a new tenant.

Can you allow pets?

One issue for many people when looking for a tenancy is whether the property is suitable for their pet. A lot of landlords are concerned about the impact a pet may have on the property and while there may be no legal or regulatory barrier to pets being allowed in the property, some landlords decide to ban tenants from having pets.

If you have no great objection to pets, you can tap into this market. If you impose an additional (yet reasonable) charge for tenants with pets, you will appeal to more people and you will have an immediate chance to bring in an additional income, thereby improving your rental yield.

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