How To Improve Rental Yield
Rental yield is hugely vital for landlords. When you are looking at property to enter the buy-to-let market with, rental yield is a key factor. Price and location are important, but you need to view buyto-let as an investment opportunity, which means you need to consider the return you receive from your investment.
You can determine the expected rental yield associated with the property, but you can also improve rental yield. It may be that you have inherited wealth, or you own property which you don’t wish to sell, but don’t want to live in, so renting the accommodation is the best option. In these circumstances, you may find the expected rental yield was lower than what you would have been happy with if you bought the property.
Of course, all landlords should look to improve their rental yield, as this helps generate more income.
Review your outgoings
A high starting point for improving your rental yield is to review your outgoings and try to cut costs without compromising on quality. Too many landlords only focus on bringing more money in, but it is likely you have opportunities to reduce expenditure.
Simple steps like ensuring you have the best insurance policy or that you have the most appealing mortgage for your needs can make a big difference to your expenditure over a year. Without changing anything about the rental property or the service you offer, you may find that you can improve your rental yield by being savvier with your expenses.
Carry out the right refurbishments
Improving and upgrading the rental property is a sensible way to enhance rental yield, but not all improvements are the same. You need to know what tenants look for rental property in your area. A lot of landlords focus on what they think is important or relevant, and this can hamper your rental aspirations.
If you are not sure who your most likely tenants are, or you need assistance in shaping your rental property to meet the needs of these tenants, get in touch, and we will be more than happy to assist you.
Installing double glazing and improving insulation at your home are obvious tips, but they do help to enhance rental yield. All landlords need to be aware of energy efficiency standards, and you should have an EPC in place. Improving your EPC rating makes your rental accommodation more attractive, and it can justify an increase in rental fees.
Of course, you don’t need to spend a lot of money on improving your home. Some landlords have found offering broadband services makes their accommodation more appealing to tenants. You should consider if you can provide additional services that help you generate extra income.
All landlords should look to improve their rental yield, but not every tenant knows where to begin. If you are looking for clear guidance and advice on how to manage your rental property and enjoy the best standard of rental yield, contact Moore & York, and we will be happy to assist you.
Moore & York Lettings’ Leicester office caters for properties to rent in the city centre and covers a wide radius of towns and villages including Market Harborough, Lutterworth, Hinckley, Markfield, Melton Mowbray and Oakham.
1 Rutland Street,
0116 275 63 60
Moore and York Lettings
Moore and York Lettings
‘Moore and York Lettings’ Loughborough office caters for properties to rent in the town centre and covers a wide radius of towns and villages including Birstall, Coalville, Kegworth, West Bridgeford and Thrussington.
18 Devonshire Square,
01509 21 45 46