If you are a landlord about to invest in property, rental yield needs to be a factor in your considerations. If you have the freedom to invest in a wide range of areas, it makes sense to make rental yield an essential factor in your considerations — the better the rental yield, the higher your chances of enjoying a suitable return on your investment.
Of course, you may already own rental property, as opposed to being on the lookout for a place to rent. While you may not have to consider finding a property in an area that offers a suitable rental yield, you can still improve the rental yield of your property. If you have owned your rental accommodation for many years, inherited rental property, tried to sell your home but have decided to let instead or any other reason that means you already own property to let, knowing how to improve rental yield is of interest.
Consider your outgoings to improve rental yield
Most landlords focus on bringing in more money to improve their rental yield, but decreasing your expenditure is often the most effective method. You may find it possible to lower your outgoings without compromising on the rental service you offer tenants. If you achieve this outcome, you improve your rental yield without experiencing any complaints or problems, which makes your life more comfortable in the long-term.
Even if you aren’t comfortable reviewing your finances, look at monthly payments such as insurance, mortgage, repair work or anything else where you may be able to find a saving. Lowering your expenditure is a sensible way to improve your rental yield, and is open to all landlords.
Carry out the right improvements
While most landlords know that carrying out home improvements can lead to improved rental yield, the upgrades have to be appropriate. Some home improvements dampen demand and decrease the value and rental yield of the property.
As with most things in the lettings market, it is best to consider the most likely tenant, and what they want from the rental property. If you have this tenant in mind and make home improvements that make your home more appealing to their needs, you can generate a better return on your home.
You don’t need to undertake a massive amount of work or expensive repairs to have a positive impact on rental yields. Extending your property adds value, but it is costly, and it takes times. Something simple like improving the broadband connectivity around the home is likely to have a positive impact on demand and yield if you let to young professionals or people who work from home. Of course, given the need for streaming and download services these days, it is fair to say virtually all tenants want better broadband connectivity. If you can guarantee this, your rental property becomes more attractive to tenants.
Offer more storage solutions
Space is critical, and storage options are in significant demand. If you can offer more storage solutions, at home or off-site, you’ll find that tenants have a greater interest in what you provide. This can help you improve your rental yield.
If you are a landlord looking to improve your rental yield, contact Koopers, and we’ll be more than happy to assist you.