Tips to Increase Property Rental Value
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The 2021 census showed the number of households renting has more than doubled over the past two decades in England and Wales, with an approximate 5 million households now renting.
Indeed, the English House Survey says the private rented sector accounts for around 20 percent of households – so needless to say renting out property remains an extremely profitable investment if executed correctly.
If you are looking at entering the world of buy-to-let, here are some tips to increase the rental value of the property and increase your return on investment (ROI).
Consider your rental yield
Rental yield is what buy-to-let investors use to figure out the level of return an investment property delivers. It is essentially the annual rental income as a percentage of the property purchase price.
Naturally, the amount of rent your property brings in is largely dictated by the average price in the area of the property coupled with supply and demand. But there are ways you maximise rent while keeping outgoings down.
Things like stamp duty, survey costs, solicitors’ fees, mortgage arrangement fees and furniture and white goods are some of the things you will have to consider when trying to earn a higher ROI.
But there are steps you can take to improve your earnings.
Upgrade the kitchen and bathrooms
Arguably the two most important rooms for renters are the kitchen and bathroom, so do not neglect these when putting your property on the rental market.
It might mean a bit of a bigger outlay in the short term, but it will bring longer-term benefits. And you don’t necessarily need to completely refit the rooms. Upgrading the bathroom with new taps, a power shower and glass screens to give a more modern look coupled with a new lick of paint can do the trick.
Additionally, the kitchen is often a gathering spot for couples and families, and it can end up being the busiest room in a property. Putting in some new appliances or worktops will add value and can help improve ROI.
Offer extras
A little extra often goes a long way.
If you provide more as part of the service, then tenants may be inclined to pay more overall. It might be something as simple as parking access, or for families, allowing pets in the home.
For students, how about offering fibre-optic internet or a discount on utility bills? Whoever you are targeting, find something extra that will appeal most to your tenants.
Add ensuites or an extra bedroom
A sure fire way to increase not only the rental yield of your property but its overall value (should you ever wish to sell) is to add an extra bedroom.
Looking at converting a loft into an extra bedroom or if the property has a particularly large living space you could convert part of it into an extra bedroom.
Additionally, you could build an ensuite into one of the bedrooms. They are not only convenient, but it can help boost rental income.
Keep up with maintenance
First and foremost, make sure you have good landlord insurance to protect against things like accidental damage or to solve any structural issues.
And in general, it makes sense to keep up with the maintenance of the home.
Ensure all appliances are working correctly, things like light fixtures are kept fresh and modern, and whenever a tenant moves out, pay for a good old-fashioned spring clean to make the property look more appealing to new tenants.
