Are you a new or existing landlord wondering how to increase your rental yield? Follow these tips to help maximise your rental yield and make your property as profitable as possible.
Location, location, location
We’ve said it before and we’ll say it again, location is key. The proximity of schools, transport links and supermarkets are all things to consider when looking for a profitable buy-to-let property. People tend to pay more for a home in a good location, especially one with a good school nearby. Plus, if you invest in an up and coming area whilst prices are low, you can sit back and watch your rental yields increase over time.
Who is your target market?
Following on from the previous point, consider your target market carefully before picking your location. For example, young professionals may prefer areas such as Battersea and Canary Wharf with good transport links and plenty to do, whilst families will need an area with good schools and green spaces.
Think about what your tenants want
Everyone wants an easy life. Simple additions such as microwaves, dishwashers and washer-driers will add value to your property on the rental market. Put yourself in your target tenant’s position and try to understand what their needs might be, and tailor your property accordingly.
Review rent regularly
As previously mentioned, letting a property in an up and coming area will increase your rental yields in the long run, so don’t be afraid to up the rent as the area improves. Think about investing in areas with planned transport upgrades, for example, i.e. the forthcoming Elizabeth Line. Rent reviews can also apply when you undertake any home improvements. Remember, it’s important to communicate with your tenants and justify why the rent increase is happening.
Make the most of the space
If it’s an old house, you might have a dining room that may have a better use, depending on your target tenant. If you’re aiming for young professionals, consider converting the dining room into a bedroom and maximising your property’s space.
Keep the interiors in top condition
If your property is looking a little tired, redecorating can make a big difference and is a brilliant long-term investment. Choose light colours to maximise light, and don’t forget to ensure all appliances are in good condition. Make any necessary repairs before you start to show potential tenants around.
Make your property pet-friendly
So many rental homes don’t allow pets. Prospective tenants may be likely to pay more for a home that is pet-friendly. According to a recent survey by the Dogs Trust, 78% of pet owners have experienced difficulty finding rental accommodation that accepts pets. Furthermore, Pet-Friendly Rentals, a holiday accommodation company, found that by not accepting pets, you will be decreasing your potential market by 50%.
Looking to rent out your property? Call the Kingsley Hamilton Estates letting team today on 020 7078 0214 or send an email to email@example.com.