Banner image courtesy of Jamie Whiffen
The property market is an incredibly popular hotspot for investors, highlighting a solid opportunity for long-term revenue generation when executed with care. If you have invested or are looking to invest in a buy-to-let property, you’re probably interested in getting the most bang for your buck. Here are some top tips for maximizing your rental yield as a property investor to increase your annual revenue.
Keep your Property Maintained to a High Specification
One of the most certain ways to add value to your rental fees and therefore increase your yield is to ensure that your property stays in excellent condition and meets- or even better exceeds – the expectations of your current or potential tenants.
A well-maintained property will make your rental more attractive to prospective tenants booking viewings, creating competition within your target market. A high-quality product drives demand, which in turn drives prices up.
If your property is your product, why not make it irresistible?
Efficiency is Everything
A factor that plays into your property’s market value and potential rental yield is its Energy Performance Certificate (EPC). An energy-efficient home equates to lower bills, which is attractive for both the renter and the buyer.
You can get your property valued online for free to quickly test how much your property is worth. Advice directly from the suppliers of these valuation tools advises that poor energy efficiency can significantly decrease the value of your home, as this is highly attractive to both buyers and renters. You can search ‘what is my house worth‘ on any search engine to find one of these tools and see how your EPC rating affects the value of your home.
Keep Vacancies to an Absolute Minimum
If property investment is your job, then a buy-to-let with no paying tenant is like not turning up to work without pay.
You want your property to be occupied by a paying tenant at all times, whenever possible. If one tenant is ending their contract, you will want to sort the next tenant as quickly as possible, ahead of time, to minimize the time that your investment is not earning you money.
Inserting notice period clauses in your tenancy agreements can help you be prepared for changeovers in these cases.
Build Good Relationships with Tenants
If you undergo a careful screening process for any new tenants and make an effort to maintain a healthy relationship with them once underway, this connection will either directly or indirectly help to save you money.
A tenant who personally knows the landlord will be more inclined to treat the property with respect, minimizing damage and maximizing profits.
Introducing rental increases when necessary will be better received by a tenant you have a rapport with than one you don’t. Why not make the effort?
Investing in buy-to-let properties is an excellent avenue for the aspiring money-maker. With these simple tips, you can help to maximize the money you make through your rental yields, across the space of a single month and an entire year.