Seven steps to increase your rental property value

You may be leaving money on the table, if you don’t use these strategies to increase your rental income. Here’s how to add value to your rental property – for those with and without time and a budget.

It’s every property investor’s dream – to secure a high rental yield property in a location that delivers large capital gains, along with low management and maintenance expenses. But when it comes to earning more money on a rental property, buy-to-let landlords sometimes make the mistake of thinking that knocking down walls and making significant financial sacrifices are the only way to go. However, this is certainly not the case.

Invest in up-and-coming areas

A great way to improve your rental yield is to buy property in an up-and-coming neighbourhood where there is set to be regeneration and investment. Look out for redevelopment of town centres, government business initiatives and promising infrastructure. Neighbourhoods such as these provide the prospect of increased capital growth and great rental values for the future.

Consider your target tenant

If your property is close to university or college, your obvious prospective tenants will be students. If there is already a lot of competition for student housing in your area, it might be wise to aim for postgraduates or lecturers, which could result in a higher rental yield.

Offer added extras

When purchasing a buy-to-let property, think about how else you can ramp it up. Increase your rental value by offering something over and above your competition, such as adding a private driveway for parking, installing fibre-optic broadband for home workers or security systems. These extras may attract tenants who are willing to pay more.

Keep on top of repairs

It’s a basic but highly overlooked responsibility of being a landlord. Your first step on how to add value to a flat of a house is to keep it well maintained. Make sure all scuffs, marks and other faults are fixed. Regular maintenance goes a long way in preventing costly repairs, and it helps you to spot disasters such as water damage that can eat into your profit.

Make use of green space

In life after lockdown, green space is a highly sought-after home feature. Showcase how tenants can enjoy the garden by adding desirable accessories like outdoor furniture or a barbecue, or maybe even a shed. By making the most of this additional space, not only do you attract a larger pool of potential renters, but you can also charge slightly higher rent.

Welcome pets

Flexibility is a desirable trait in a landlord. Allowing pet owners is potentially a great way to charge more rent, making it easy to increase rental income. If you choose to welcome pets into the property, be sure to install durable flooring.

Update and upgrade

As times change, so do people’s needs, and that means staying on top of ways to improve property value. Knowing what your tenant wants from a property can help make your rental more attractive.

Higher spec properties always tend to command a greater rental rate, which will ultimately have a positive impact on your yield. If your property is furnished, unstable wardrobes or damaged kitchen appliances these things can be off-putting to potential tenants. What’s more, a newly updated home is more likely to attract tenants who will want to keep the property in good condition – equating to less repairs when the tenancy ends.

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