Discover some quick wins and longer-term goals that can help you increase the value of your let and boost your rental yield.
With increased demand for rental property over the past few years, there are great opportunities out there for landlords.
Before diving into the how-to, here’s a quick overview of what’s currently happening in the rental market.
Average UK rent currently sits at £1,294 pcm, which is 1.6% up from last month, and a year-on-year change of +7.9%.* Excluding London, the average rental price is £1,084 pcm, and the region with the current highest average is, unsurprisingly, London with £2,167 pcm. The North East has the cheapest rent with £699 pcm.* In terms of rental growth, Wales had the slowest annual growth with +4.9%, whereas the West Midlands has the fastest growth with +10.0%.*
To help give you an edge, we have curated a list of seven quick ways to make your property stand out in the market and help boost your rental yield.
1. Keep the interiors looking fresh
A fresh lick of paint, and getting on top of the small maintenance jobs, is a sure way to quickly and cheaply improve the desirability of your property to renters. As they say, first impressions count. And this is how renters will perceive its potential to be their new home, and therefore, how much they are willing to pay to make it happen.
2. Allow tenants to have pets
Being flexible with pets will give you an edge in the market because, simply, a lot of landlords don’t want to take on the risks or hassle associated. However, the risk is rewarded by renters desperate to have their furry friends around. If you are smart with fencing, and monitor for damage from badly behaved pets when you carry out inspections, then the risks can be mitigated and well worth the added rent your property can generate.
Read more about lets with pets, in our article here.
3. Be clever with storage space
The trends are clear, people are staying in their rentals for longer, and with this comes the need to store all the stuff we tend to accumulate while settled in one spot. Another point to keep in mind is that families with kids will also need more storage options.
You can help tenants make the decision to choose your property for their nest, by finding clever ways to maximise storage space. Try adding cupboards where they would be most useful (like a bathroom cabinet), and for your existing storage spaces, try installing space-saving solutions such as mounted spice or knife racks.
4. Tighten up your outgoings
Increasing cash coming in isn’t the only way to improve your yield, you can (and should), of course, decrease the cash going out. When reviewing or renewing your utility contracts, make sure you research the options available that best fit for your needs.
5. Upgrade the kitchen with a dishwasher
Installing a dishwasher in the property can increase the rent you can charge. For some tenants, having a dishwasher will be a must and a non-negotiable. They can cost, more or less, the same as a washing machine and could be a big differentiator for your property. If it's a space issue, there are also slimline dishwashers available that are perfect for smaller properties.
6. Go green – for the planet and your tenants
Whilst this strategy may involve a higher upfront investment, minimising our environmental footprint is increasingly at the forefront of renter’s minds – particularly the young professional market. Giving your property a green makeover such as upgrading its insulation or installing a smart energy metre will also lower your tenants' energy bills, and allow you to flex its green credentials with a higher rent. Therefore, by making green investments, you may be able to increase your rental income and, at the same time, future-proof your investment in case any environmental policies are introduced into the lettings sector.
7. Make it home office friendly
As we’ve all experienced recently, the way we work has changed. With many companies having shifted to more remote and/or hybrid working opportunities, creating a comfortable designated work space in your property could be a massive draw for those who may want to work from home for at least part of their working week.
These seven quick wins should give you some food for thought in how you maximise the yield of your buy-to-let property, adding value to both your tenants and your portfolio.
