The defining factors in turning a profit from letting your property
WHILE A BUY-TO-LET investment property can be a lucrative venture, it’s not always guaranteed success. Rising house prices and fluctuating government policies have made achieving profitability in the private rental sector challenging. However, don’t despair just yet. By implementing some strategic measures, you can enhance your property’s appeal to tenants, minimise expenses and optimise your investment’s potential. These can be the defining factors in turning a profit from letting your property. However, it’s important to remember the long-term implications of your choices and their impact on your tenants.
STRATEGIES TO CONSIDER WHEN AIMING TO BOOST YOUR RENTAL YIELD:
Smart investments: Property investment demands substantial research, effort and commitment. Each new purchase equips you with more experience and knowledge. Nonetheless, every property should be treated as a business venture, requiring scrutiny of each potential investment and negotiation opportunities to maximise returns.
Evaluate expenses: Examine your fixed costs, such as mortgage payments, insurance premiums and leasehold fees. Try shopping around for better deals on your mortgage and building insurance.
Target emerging areas: Identify locations that promise higher rental yields. Upcoming towns and cities with planned regeneration and government investment are often good bets. Major infrastructure projects can boost certain areas, increasing capital growth and future rental values.
Rent evaluation: While charging higher rent seems easy to improve rental yield, fairness and reasonability must be considered. Consult a letting agent to assess the market rate for similar properties in your area – you might be undercharging or overcharging your tenants.
Property refurbishment: Ensuring your property is in good condition justifies any intended rent increase. Refurbishing and redecorating your property also helps establish long-term tenancies, as it shows your care for your tenants and encourages them to reciprocate the respect.
Long-term tenants: One effective way to boost rental yield and cut costs is to retain the same tenants longer. This eliminates one-off costs associated with frequent tenant changes and reduces maintenance expenses.
Pet-friendly properties: Becoming pet-friendly could make your property more attractive and unique. Despite the dwindling number of petfriendly rentals, prospective tenants could be willing to pay a premium to keep their pets.
Energy efficiency: Enhancing your property’s energy efficiency can reduce energy bills and make your tenants more willing to pay a bit extra. A property with lower heating costs can be a great selling point.
Property extension: Consider adding more rentable rooms or increasing the living space. For instance, an attic could be transformed into an additional bedroom. This option may only be available to some landlords, but it’s worth considering if feasible.
>> TIME TO TALK BUY-TO-LET MORTGAGE OPTIONS?<< Whether you’re venturing into the rental market for the first time or looking to grow your existing property portfolio, we can assist you with your buy-to-let mortgage options. For more information, speak to Omni Finance – telephone 01424 236903 – email firstname.lastname@example.org
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. AS WITH ALL INSURANCE POLICIES, CONDITIONS AND EXCLUSIONS MAY APPLY. YOUR BUY-TO-LET PROPERTY MAY BE REPOSSESSED OR A RECEIVER OF RENT APPOINTED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE. MOST BUY-TO-LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA). EQUITY RELEASE MAY INVOLVE A HOME REVERSION PLAN OR LIFETIME MORTGAGE WHICH IS SECURED AGAINST YOUR PROPERTY. TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION. EQUITY RELEASE REQUIRES PAYING OFF ANY EXISTING MORTGAGE. ANY MONEY RELEASED, PLUS ACCRUED INTEREST, TO BE REPAID UPON DEATH OR MOVING INTO LONG-TERM CARE. EQUITY RELEASE WILL AFFECT POTENTIAL INHERITANCE AND YOUR ENTITLEMENT TO MEANS-TESTED BENEFITS BOTH NOW AND IN THE FUTURE.
The Mortgage & Property Magazine is published quarterly for Omni Finance by Goldmine Media Limited. All enquiries should be addressed to The Editor, The Mortgage & Property Magazine, c/o Goldmine Media Limited, 124 City Road, London EC1V 2NX. Please note that The Mortgage & Property Magazine does not accept unsolicited contributions. Editorial opinions expressed in this magazine are not necessarily those of Goldmine Media Limited and Omni Finance does not accept responsibility for the advertising content. Offers and promotions may have limited availability. To discover more, visit the Omni Finance website: www.omni-finance.co.uk. All Rights Reserved 2023. The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Due to the devolved administrations of the United Kingdom, the information relates to England only except where explicitly referred to otherwise. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.