You may have been a landlord for decades, or are perhaps a new to letting property. Either way, while it’s great to receive rental income each month, it can sometimes feel that you’re constantly eating away at your profits through the expense of letting your property. From gas and electrical safety certificates to fitting smoke detectors, from maintaining the property to a high standard to perhaps paying bigger tax bills, being a successful landlord means always maximising your rental potential, but this can be a tricky balance to achieve with so many legal obligations to meet.
Here are three ways to boost your rental income:-
Check that you’re charging the appropriate rent
Landlords are often accused of charging ‘extortionate’ rents, but in reality many landlords don’t regularly increase their rent to existing tenants. The government’s latest English Housing Survey suggests that tenants typically stay in a property for just over four years. If rents were to increase during this period in line with general inflation, that would mean a monthly rent of £750 would need rise to just over £815 - just to keep up with the cost of living. (Source: https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator 2015-2018)
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Are you attracting the right tenant?
These days tenants rarely rent on a short, temporary basis, and are looking much more for a real home. Tenants who can afford to pay higher rents tend to want a property of ‘show home’ standards. A house offering a gleaming, modern kitchen coupled with a beautiful, contemporary bathroom can make the difference between attracting a minimum and a much higher-end rent. Upgrading your property doesn’t have to cost a fortune, but can be a worthwhile investment which ensures your property always lets quickly and for maximum rent.
Reduce voids by using a forward-thinking agent
A good agent knows that keeping your property occupied, with minimum empty periods, means more rental income for you. This requires an excellent agent-tenant relationship so that when tenants decide to leave, they give a reasonable notice period, are happy to let the agent arrange viewings for prospective tenants, and will help to make sure the property is seen in its best light.
At Leaders our average void period is18 days versus the national average of three weeks (Source: http://www.arla.co.uk/media/1047156/arla-propertymark-prs-report-june-2018.pdf)
Not sure if you are charging the right rent? Need to boost your property’s rental income?
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