If you own a buy-to-let home, you want it to be a successful investment. According to experts, including estate agents in Sittingbourne, The average rentals in your neighbourhood, as well as supply and demand, will, in many ways, determine the rent your home will fetch. There are, however, ways to maximise your rent and reduce expenses.
Here are some simple tips on how to raise your property’s rental value.
When the annual rental income is as high as feasible, the maximum rental yield is realised. If the property receives low rent or is vacant for an extended period of time, the rental value is decreased. The following steps will let the landlord collect the highest possible rent and persuade tenants to stay longer.
Focus on the basics
Rental homes are known for being less than charming. That would have been acceptable in the past when tenants only lived for a brief period of time, but today’s tenants typically rent a property for two years or longer, so they want more. As a result, one of the most affordable methods for landlords to increase rental income is to ensure that their properties are well-maintained. Experts including Sittingbourne letting agents say that Making the most of any outdoor space, a fresh coat of paint in a neutral colour palette, sturdy rather than plain furnishings, a modern, effective heating system, and these improvements will all help to draw in and keep tenants.
During a tenancy, landlords must also keep up with proper property maintenance. This calls for frequent inspections and prompt action when issues are reported by tenants. A key component of increasing rental value is being a good landlord.
Concentrate On The Bathroom And Kitchen
Kitchens and bathrooms that are impeccably kept up a draw in new tenants eager to pay top rent and encourage them to stay, cutting down on re-letting costs and potential vacancy periods between tenancy. Keep in mind that renovations or replacements will be required much more frequently than in a private house because kitchens and bathrooms in rental properties are likely to get worn-out and shabby more quickly than in other rooms. The expense will be worthwhile because maintaining these rooms in good condition is essential to maximising rental value.
Include a third bedroom
Increasing the number of bedrooms is a surefire strategy to increase rental return. If you want to add a bedroom, think about installing a loft extension, or if your home has a large living area, consider changing one room into a bedroom to raise the rent. Adding a second bedroom will increase rental income and should increase the value of the entire house.
Niche markets to target
A thorough analysis of the local rental market may identify specialised groups of tenants who are willing to pay more for the amenities they require or desire. Pet owners are one of the specialist groups that may be accommodated the easiest. The majority of dog and cat owners will gladly pay a higher rent in exchange for the ability to bring their pets. Of course, some landlords think pets can hurt the property and end up costing more in maintenance and upkeep than they would earn in extra money. We advise landlords to think about accepting pet-friendly tenants. Adding a “granny annexe” could be advantageous in some places where renters are ready to pay more for multi-generational living. It might be profitable to sell to corporations. Corporate renters require the best-equipped premises so that prices can be higher, but the rentals are quite high and can be collected up to a year in advance.
By providing something above and beyond what the competition is providing; you can also raise your rental value. If parking is scarce where you live, for instance, you can consider adding a private driveway. Installing fibre-optic broadband could help boost your rental value at the moment when working from home is a must. Modern security measures or appliances could draw tenants who are ready to pay more.
We advise you to verify that your investment will generate enough extra revenue to pay for the increased expenses and that renters in the neighbourhood where your property is located are willing to pay a higher rental rate. When it comes to creating a good investment property, there is no set formula. There are many ways you can go about it – big-ticket renovations or small cosmetic changes. You might also consider hiring a decorator – if your budget allows for it. Just remember, the goal of investing in real estate is not only to create value for yourself but also for others.