02 Apr 2015
Julie Webster, Leasing Negotiator, looks at ways of helping landlords maximise rental income.
Renting out a property is just like any other investment, it should be regularly reviewed to ensure that it is maximising potential returns for you.
Here are five key areas to consider when assessing whether you are making the most of your rental property.
Getting the maximum rental income from your rental property is the most obvious way of ensuring healthy returns. However, maximising your income does not always mean automatically increasing the rent every year, particularly if you have reliable tenants who are willing to extend their current agreement. This can also be true if the state of the local market has altered since you last let the property. This is where a letting professional’s expert knowledge of market trends is key to understanding what is achievable in terms of rental for your particular property. Their experience of the local market will ensure that you are getting the optimum return from your investment. You may be surprised at how the market has changed.
Minimising periods of unoccupancy is one of the most fundamental steps towards getting the most out of your property. Therefore when marketing your property make sure it is presented at its absolute best. Showing your rental property to the widest audience possible also greatly increases your chances of securing a speedy let. This is where a lettings specialist with a wide network can greatly improve the speed at which you let your property.
To avoid paying too much tax, you need to be aware that certain deductions are allowable when your property is being let or is available for letting. You should consult a qualified accountant or HMRC for specific advice regarding this, however as a general guideline, landlords are permitted to make certain deductions from their rental income before calculating profit. Some of the available deductions available to landlords include:
Some landlords are reluctant to spend money on redecoration, but remember that as well as an increase in the rent, the value of your property will also increase meaning your income and the value of your assets will rise together. Bathrooms and kitchens make the biggest impression on potential tenants so should be top of the list for renovation. Simple improvements can often greatly increase your chances of securing a tenant quickly.
Disputes over damage/unacceptable wear and tear to properties at the end of rental agreements can lead to an erosion of the value you have created over the term of a rental. Landlords are recommended to protect themselves from any such disputes by preparing a professionally drawn up inventory. Using inventory agents accredited by the Association of Professional Inventory Providers (APIP), who follow the APIP strict code of practice, is an excellent way of minimising the scope for dispute.
Your property investments can bring much higher returns when you consider these points and have a knowledgeable, pro-active agent on your side. Expert advice and assistance at every step of your investment is vital- finding the ideal investment property, managing rental for you, and controlling costs and maximising your return.