In this blog, we’re talking money. Or to be more precise, your money. For landlords, cash out could equal (more) cash in, and we’re happy to explain how. Here are five things that really work.
The Property Moves team knows that achieving a healthy rental yield is one of the main reasons, if not THE reason you’re a landlord.
You’re in business, after all.
Let’s Start with Some Maths
Quick calculation advice, to work out your rental yield:
- Take away all expenses and outgoings from the annual rental income
- Divide this number by the purchase price of the property
- Multiply that number by 100
- Voila
How much should your rental yield be?
In Brighton and Hove, a robust yield could be between 4.5% and 6.5%.
Getting it Right
From years of experience, the team understands that there are quite a few “ticks” in applicants’ rental wish lists when they’re searching for a property. For brevity, we’ve narrowed it down to a beauty parade of the top five.
And, these ones are actionable, as well as relatively easy.
But, do get in touch if you’d like to learn more.
On the whole, the more time, effort and money you invest in a property, the better. Don’t be that landlord who skimps and scrapes. It’s just not a good look. Plus, it could end up costing you dear in the long run, with tenants who don’t really care about good housekeeping and who leave your property in a poor state.
Nice people keep nice places and things nice.
However, it’s not all about pound signs; there’s a bit of smart strategic thinking involved too: location (including up-and-coming locations), transport and amenities, proximity to shops – and so on.
But to start, let’s go in-house.
- Install a Dishwasher
A surprising one to start with, perhaps, but this is a real kitchen upgrade.
Do you actually like washing up? Probably not. And, your tenants don’t really like it either. Especially for HMOs, a dishwasher could be a lifesaver. Costing approximately the same as a washing machine – DON’T go cheap and cheerful here – the presence of an automatic washing up fairy could make all the difference.
- Increase Storage
The truth is, nobody, but nobody has enough storage. It’s a given. Perhaps also, we could argue that “stuff” simply expands to fit the space available, and that unless we go the full Marie Kondo, there will never be enough storage, ever.
But it’s still a frustrating issue for tenants with not enough space.
For example, you could add useful cupboards in the bathroom, or mount them in an appropriate place in the kitchen. An under-stair space could be transformed into a larder with a few judiciously placed shelves.
Good storage appeals instantly, especially in a kitchen, because people instantly start imagining living there.
- Improve the Interiors
Keep everything clean and fresh for a great first impression.
An affordable lick of paint throughout can work wonders to the desirability of your property, and the amount of money your would-be tenants will pay. A well-maintained house or flat looks so much more rentable than one down-at-heel. Obvious, but true.
For a buy-to-let property, it’s best to choose neutral shades for walls and flooring to maximise its appeal.
And may we suggest you reduce clutter (if the property is furnished)? We’ve seen too many over-filled rooms, and it’s not good. Also, several instances of large, clunky office chairs and mismatched furniture in fairly compact living rooms. To be fair, it will put people off the moment they walk in.
- Allow Pets
Are you serious about increasing your rental yield?
Then allowing tenants’ furry friends to inhabit their new home with them isn’t just a kind gesture. It could also give you the edge. Pets are allowed by law and have been for some time. Ask us for advice regarding how best to reduce or prevent damage from dogs or cats.
- Have an Impressive Kitchen (or, as impressive as you can make it)
Everyone loves a kitchen, and why not? It’s where we all gather at the end of the day for a catch-up with our loved ones or university friends – all safely gathered in with a beer or two. It’s where we prepare food; basically, we gravitate there.
There’s a lot of “traffic” and footfall in kitchens, too. Not for no reason is a kitchen the heart of the home. So, it makes sense to invest in high-quality fixtures and fittings. Why?
Because a) a well-made cooker, for example, will last longer, be easier to look after and to be fair, is likely to attract keen, aspirational, would-be family chefs.
Also because b) lots of storage appeals to practically everyone.
And c) because decent quality flooring, attractive recessed lighting, a large fridge – they all enable your property to stand out from the crowd and attract a higher level of rent.
Kitchens throughout Brighton and Hove can sometimes be on the galley-size scale of things, so if you have money to spend on extensions and renovations, and it’s possible to do it, it’s got to go to the kitchen.
And lastly..
The Law Protects Everyone
OK, this is point no. 6 but it’s worth mentioning: keeping up to date with regulations will result in excellent adherence to health and safety laws for you as a landlord. Which in turn leads to longer-term tenancies and increased interest from renters.
You must get it right. The Renters’ Rights Act has shaken things up, protecting tenants and ensuring that you, as a landlord owe them a decent home in which to live.
Property Moves’ understanding of the rental market is second to none.
It has to be.
Rental property is our livelihood. Not only can we advise on how best to increase your rental yield, we’re fully up to speed with all those complicated things that you need to know, and that you must do to be a responsible landlord.
Contact us today for more information.