Landlords are told to consider rental yields before they invest in property. The higher the rental yield, the more opportunity you have to enjoy significant returns on your investment. However, if you have already bought a rental property or you have inherited property, you cannot make a buying decision based on finding the best rental yields.
It is possible to improve rental yields, and the following tips will help landlords improve their income while hopefully providing tenants with a higher standard of service.
Examine your outgoings
It is natural that landlords look to make improvements around their home to generate more rental income, but there may be a more straightforward way. If you can reduce your expenditure without compromising on the quality of service you offer, you will improve your rental yields.
It may be that you pay too much on insurance, on your buy to let mortgage or for third-party services. Review your outgoings and determine if you can find more affordable options that don't detract from the service you provide to tenants. With a bit of luck, you can save money, and the tenant won't even notice any changes.
Refurb in the right manner
Carrying out refurbishments help landlords improve their rental yield, but not all renovations are of equal benefit. If you want to ensure you please tenants and make your rental accommodation more attractive, think about what your tenant needs, and be practical.
There are many decorative improvements you can make around the rental property, but if these don't add benefit to the rental property or create a tenant's life easier, are they going to help you generate more income? It would be unlikely, so focus on practical measures like improving broadband connection or offering more space for working or working out.
A sensible strategy for landlords looking to improve rental yields is to focus on energy efficient improvements. Eco-friendly changes to home save money on energy bills; they add value and appeal to tenants who want to lead an environmentally friendly lifestyle. Therefore, making your rental property greener is a sensible idea that pays off in the short and long-term.
If you have time and money, convert or extend
If you have significant funds to invest and you have time to make substantial improvements, it stands to reason that converting or extending your rental property makes sense. Additional bedrooms bring in more money, and if you tailor a space to a specific tenant need, you can generate further income.
More people work from home these days, so creating a home office space can stand your property out from the crowd. Fitness is hugely important for many people, thus converting a space into a yoga room or a workout area can have a tremendous impact on people taking an interest in your rental property.
Offer more storage space
Storage is crucial in all homes, and tenants are as keen to find a property with ample room as buyers. Therefore, the more storage options you can provide to tenants, the more attractive your rental accommodation is likely to be. You can invest in storage boxes or cabinets for your home, or why not consider investing in off-site storage and allowing tenants to access this facility?
Try to be flexible
One way in which you can improve your rental yield is by offering a better rental service. A flexible landlord may find that their property is in higher demand, so create a list of what you are willing to accept at the rental property. If you are happy to allow tenants to make minor decorating changes or even allow pets, you can generate more significant income.
You need to be comfortable with what you allow in your home, and of course, allowing tenants more freedom can lead to more significant costs, but if you can manage these costs, you have a chance to generate further income.
If you are a landlord looking to generate higher rental yields, come and speak with the local experts. At Hunters Camberwell, we are pleased to say we have helped many local landlords provide a reliable service to tenants, and we look forward to assisting you.