As a landlord, you should always have one eye on your rental yield. Before you invest in property, if your sole focus is in obtaining the best return on your investment, it is best to choose an area with an actual rental yield.
However, there are many reasons why a landlord doesn’t make rental yield their sole focus. A landlord may wish to purchase a property close to them, allowing them to be a hands-on landlord. It may be the landlord has an emotional tie to an area, and wants to impact the local community positively. There is also the fact that some landlords don’t buy a property to let, they stumble into the process. The term “accidental landlord” is becoming an increasingly common one, and these are all reasons why rental yields aren’t at the forefront of a landlord’s thoughts.
“Of course, you can still improve your rental yield, regardless of where you are located, we are pleased to say we have worked closely with many Royston landlords”, said Thomas Morris Royston Branch Manager Erin Carroll. “If you are based in the local area and want tips on how to improve your rental yield, we are here to assist you.”
Consider your outgoings
Most tips on rental yield start by telling people to make improvements or upgrades around their home. This can be expensive and time-consuming. The most effective way to evaluate your rental property in the hope of improving rental yield is to consider your outgoings.
You can improve your rental yield by reducing the amount of money you spend in your course of duties as a landlord. If you can reduce the money you spend on mortgage payments, insurance or repairs, it is possible to save money without compromising the standard of service you offer tenants.
Some landlords find finances annoying, but if you want to improve your rental yield, review your outgoings and look for ways you can obtain better value for money.
Know which improvements you should make
Most landlords accept home improvements allow you to improve your rental yield, but not all home improvements are equal. It is vital landlords know who their audience is, and what these likely tenants want in rental accommodation.
If you let to young professionals, their needs are likely different from what a household with two young children needs. When you make improvements around the rental accommodation, make sure it is relevant to your tenants, because this justifies rental fee increases, allowing you to generate more income.
Adding more space is never a bad idea if you wish to generate more rental income. Of course, converting or extending your property is expensive and time-consuming. If you are taking this approach, review what the possible improvement in your yield and return will be, because not all property extensions will provide enough of a return to justify the outlay.
A more affordable way to create space while improving your rental yield is to invest in storage solutions or to offer external storage space to tenants.
Letting your home is stressful, but with the right support, you can make the process easier. Book a valuation at a time that is of suitable to you or alternatively, you can phone our Royston branch, managed by Erin Carroll by calling us on 01763 243331.