How to Maximise Income For Your Rental Property
For any investor wishing to build a portfolio which consistently performs well, it is vital to ensure that you maximise the income from the letting of the property in order to produce the strongest possible yield. While rental income will of course vary depending on location, size of property, and fluctuations within the market, there are certainly steps which landlords can take to ensure that your investment property is offering it’s best potential when it comes to rental values.
The Importance of reducing void period
For most landlords, loss of rental income due to void period should be your number one concern. If your property is sitting empty, not only are you not receiving a rental income, you are also likely to be incurring costs such including utility bills and taxes, and extended void periods also add an element of security risk when leaving the property unoccupied.
While it is prudent to plan for some void periods, for example if the property requires updating between tenancies, or your tenant leaves at a traditionally very quiet time of year such as the Christmas period, there are steps that you can take to mitigate void loss.
It goes without saying that a well-presented property in excellent condition will not only be more attractive to potential tenants (therefore reducing potential for void periods), in addition a well maintained and higher specification property in many instances will command a higher rental value.
Keeping your property well maintained both inside and out is vital to ensure that you do not meet with unexpected costs for repairs, therefore regular inspections should be carried out throughout any tenancy to check for signs that potential issues could arise.
Understand your niche
Dependant on the size, type and location of your investment property, it may be that it appeals to a certain tenant niche. For example, city centre property may appeal to professionals who are likely to want the latest specifications and fully furnished lets, whereas a house in an area well located for a university will attract student sharers.
Like any other business model, it is important to understand your target audience, and ensure that what you offer appeals to them, so do ensure that your property type, presentation and even how it’s advertised is designed to attract the most relevant tenants for your property.
Review Your Obligations and Taxes
As a landlord, you are able to reduce the amount of tax that you pay on your rental income by claiming allowable expenses. For some landlords with a wider portfolio, it may be beneficial to operate as a limited company – however the advice of a chartered accountant should be sought.
It’s also vital that you stay up to date with current lettings regulations – they change often and a fine for lack of compliance can wipe out your rental income.
Use a Lettings & Management Company
Using a reputable property management and lettings agency offers a great return on investment. From sourcing the right tenants by having an excellent understand of the market within specific locations, to undertaking regular inspections to ensure that the property is well maintained throughout the management process, the value of using a good managing agent can certainly outweigh the fees.
Benoit Properties offer a full lettings and management service, and as experts in property investment have a dedication to not only sourcing the right the tenants – we understand that your rental property is also an investment which you wish to protect and make the best possible income from, both today in terms of your rental income, and in the future to retain sales value.
Get in touch to find out more about our property lettings and management services.