TOP TIPS to MAXIMISE your RENTAL INCOME with these KEY STRATEGIES 🔑
#CAVENDISHEXPERTS in Lettings, Sales and Property Management in Nottingham | Cavendish Residential | One Fletcher Gate NG1 1QS | 0115 941 0656 | www.cavendishproperty.co.uk
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 (FTBs), 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…
Before you buy
✅ Work out 'acceptable' gross yield by dividing annual rent by purchase price 🧮
✅ Example: £15,900 rent a year on a property bought for £225,000 gives a gross yield of 7.1% 📈
✅ Compare with leaving your £225k in a bank (around 1% interest!) 😱
✅ Gross yield guide:
5% = Acceptable 👍
6%-8% = Great 🥇
8%+ = WHOAAAA! ⭐
✅ Gross to net calculation - use 9 months rent instead of 12 🧙♂️
✅ Prepare 1 month void per year, 1 month maintenance and 1 month Letting fees 🤔
✅ Effectively, £1,325 rent = £11,925 approximate net income per year 💶
✅ NOTE: you can SIGNIFICANTLY increase your Return on Investment by using a BTL mortgage, for a real 25.1% example click here!! 📩
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.
Rent Management
✅ Run your Tenancy 12 month fixed to expire August/September - these are the busies times for finding new Tenants and therefore you'll reduce void during Tenancy transfer 🚌
✅ Increase your rent - 10% is an acceptable level 💹
✅ Consider pets where the Head Lease allows (with relevant clauses in Agreement) - rent can be increase further! 🐶
✅ Only accept Standing Order payments and handle late payments immediately ⚡
✅ Use float balance throughout Tenancy - putting £50 aside each month soon adds up! 👍
Property Management
✅ Invest in making property more efficient - saving your Tenants money on utilities means they have better cash flow, which means rent on time 💡
✅ Maintenance is a lot easier on cash flow if you're preventing instead of waiting for things to go wrong - so pop round and actively look for potential issues 👀
Managing your outgoings
✅ Do not pay for dilapidations that are down to your Tenant! Keep a strict record from the start to ensure you have the evidence needed to go to adjudication if needed 📋📸📹
✅ Review mortgage deals, insurances and other expenses yearly 📊
✅ Move your Rent Due date a week before your mortgage goes out 📆
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.
🙋♀️ Are you looking to buy an investment property? Do you have a current investment that's not performing as it should? 🆘
Speak to our team today, when it comes to MAXIMISING your return it's what our EXPERT team does best! 🦹♀️🦸♂️
☎📧🗨
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#CAVENDISHEXPERTS in Lettings, Sales and Property Management in Nottingham | Cavendish Residential | One Fletcher Gate NG1 1QS | 0115 941 0656 | www.cavendishproperty.co.uk
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