What’s an even better investment bet than a new rental property? Making more of a return on your existing rental portfolio. Just as shops make a greater return on investment from repeat customers than they do attract new ones, so there are ways to make the home you let out Work much harder for you. With a few small investments and some clever tricks, you could make that property yield more for you than you ever imagined…
Understand your audience
In order to attract the best tenants, and have enough demand to justify premium rents, you need to understand who your market is. Do this by taking the time to understand the demographics of the local area. Near a college? Think about groups of students. Great family area? You’re likely to get renters with young kids. Whatever the case, understanding what amenities your target group is looking for will help you to market your rental property effectively. Everyone wants to be a landlord these days, and competition can be intense. So from larger old properties that can be sub-divided until student housing to something from Pulte new home builder perfect for families, understand what you can offer and who your tenants are likely to be.
Add an en-suite
If there’s space to do so, adding bathrooms can seriously up the rental value of your property. Bathrooms can be cleverly designed for the smallest of spaces these days, so you may be able to fit one. Ensuite facilities tend to attract wealthier tenants who are willing to pay more.
Premium up your property
Consider adding deluxe features to your place and you may be able to command a premium. State of the art security systems, wireless audio networks and luxurious appliances can all command more monthly returns – but make sure there is genuinely a market for it in the area by speaking to a local lettings agent first. This is an especially good policy in areas where buying is so expensive it prices many people on good incomes out.
Raise the rent
Make yearly rent reviews a condition of contract so that you can be sure you’re keeping up with market rates and securing the maximum returns. This way, it raises an expectation with your tenants, even if the increase is only slight. You may then also be able to get them to agree to a longer term for a guaranteed rate.
Keep up on the basics
Don’t let your asset depreciate by keeping on top of routine maintenance, replacing worn- out features and seeing to small issues that can quickly spiral, such as boiler maintenance and damp. This not only protects your investment and is likely to ensure any rent increases are accepted by your tenants, but it makes the property more attractive when it comes to getting new ones.
A few simple steps could mean that you can command a premium for your investment and make sure that anything you put into the property shows up on your bottom line.