The demand for rental properties in the UK is quite high nowadays. This is mostly due to higher house deposits, and tougher mortgage rules making it difficult for people to buy their own home.
Because of this, an increasing number of first-time buyers, single professionals and many families are moving in rental properties. This is great news for those letting a property, however, there is no guarantee that just because the demand is high, a property will be let successfully and gives you a high return.
There is high competition for good tenants and the experienced landlords put in all the efforts to avoid any dreaded and costly voids. However, many of the measures taken by landlords to get higher rental yields are a mystery to people who are new to the rental business or have become accidental landlords as a result of not being able to sell their home.
However, you need not worry; we are here to help you out. Here are the key strategies to help you maximise your rental yield…
Location and target market
Anyone considering an investment property must research locations before buying it. This is essential because if there are a lot of developments in your location, your property value may increase along with the demand over time. For instance, properties near the shopping centres, parks and other amenities will give you a higher rental income. Also, knowing the kind of people who want to live in your investment property’s neighbourhood is the key to optimising your investment property.
You should take note of the kind of residents that have shown interest in the neighbourhood and what kind of things they are looking for in a rental. For example, if they are looking for furnished rentals, you can try furnishing your apartment. If they are looking for brand new appliances or top of the line fixtures such as showers or faucets, you should spend your renovation expenses on those things. Knowing this will help you reduce expenses on not-required items and you can charge a higher rent as you will be catering to their needs.
Condition and decoration
A rental property that has been well looked after and kept clean is what most people look for. One which is run-down, in need of a repaint, and has leaking faucets and smells is not going to be easy to let out. It’s common sense to look after your rental property, but many properties fall short of a decent condition. It might necessitate some extra work, but ensuring your property is in good condition will maximise your rental yields.
The rental property that offers safety and security to tenants is more likely to gain a higher return. You don’t need to go overboard with high-tech alarms or CCTV, but ensure the doors and windows lock properly and are safe. You could go a step further and invest in swipe card security measures.
Follow these tips and you’re bound to achieve maximum rental yield.