Maximising Rental Income
We get results. Our high profile marketing means that you can start to see interest in your property from day one. But what else can you do to maximise rental income?
Voids
Void periods are extremely costly for landlords and anything you can do to minimise these periods will improve the return on your investment. Ideas to consider include:
- Keeping a list of potential tenants from previous viewings;
- Having a system in place to reduce changeover times;
- Networking with other landlords with a view to 'trading' tenants;
- Marketing your property through an agent. Most people now look for property on the internet and agents have ready access to the more popular property portals. The marketing power of agents also extends beyond the internet to the local press and includes access to details of potential tenants.
Tenants
Understand your target market tenants' needs and tailor your property to their demands.
Ensure that your tenant screening process is robust and thorough. Having a beautiful property will count for nothing if your tenants are not paying their rent. Your screening process should include a credit history check and a check of references.
Understand why tenants leave your property and take action to address feedback.
Consider "multi-letting" in order to generate the most rental income. While rental agreements to a family, couple or individual may be commonplace, an investor landlord will typically achieve more rent by leasing bedrooms on a "room by room" basis.
Keeping tenants happy is important.
Extras
The provision of extras such as car parking spaces, a garage or storage space could be a means of generating additional income.
Presentation
The quality of the decoration and contents in the property will have an effect on the rent level and the time taken to secure tenants. Ideas to consider include:
- Choosing neutral colours such as cream or magnolia for decoration;
- Having carpets, curtains and furnishings that are neutral and able to withstand wear and tear;
- Having neat and tidy gardens;
- Having the property professionally cleaned before you start marketing.
If you are seeking a company let, the property must be adequately equipped and all furnishing must be in good order.
Rent
Keep abreast of changes in the rental market in your area. Be flexible and don't be afraid to adapt to changing times.
Review the rent regularly in accordance with regulations and the terms of the tenancy agreement. Include details of any rent review in the tenancy agreement. If necessary raise the rent.
Charge tenants a fee for late payment of rent. Inform your tenants that if rent is not paid on time they will incur a late payment fee. Follow up on this.
Maintenance
Keep tenants happy by being responsive to repair requests and disputes.
To achieve a higher level of income ensure the property is, and remains, in excellent condition. A mistake made by many landlords is that they don't invest in their properties because they don't believe they will see a return on that money. By fitting clean, modern kitchens and bathrooms you can charge a premium rental income which more than covers the initial capital expense of such improvements.
Tax & Financial
Minimise your tax liability by making sure that you deduct all allowable costs that are available to investment property owners. These include mortgage interest, depreciation, insurance and repairs. Using a competent tax advisor to take advantage of all available deductions will significantly reduce your expenses.
Be sure to shop around for the most competitive finance and insurance deals and regularly review these arrangements to ensure you aren't paying too much for your financial products.
