Best returns on your rental property?

12 June 2024

We are continuing to see demand consistently outpacing supply. This is good news for landlords, providing them with plenty of opportunities to achieve their target rents and maximise returns on their properties.

There are plenty of strategies to add value and keep tenants happy for the long haul.

What type properties have the best yield?

If you are looking for a high yield, then it’s worthwhile investing in a 1-2 bedroom property. Renters looking for this size of home may not always be looking for a long term let but the yield is likely to be consistent.

An alternative strategy may be to consider a larger property suitable for families where occupants are likely to stay longer, thus reducing void periods, when the income is crucial. These tenants are also more likely to become more attached to the property as some families end up living in the same rental for a number of years making it a home from home.

Keeping your rental well-maintained

Whilst spending a fortune renovating a rental property is not going to yield a great return, neither is not spending enough. Make sure that you are keeping on top of the maintenance of your rental. Particularly, when it comes to an end of tenancy. Take to the time to make some improvements so it looks as good as new for next tenants. This could be as simple as re-painting skirting boards or getting the carpets professionally cleaned. This will give a tenant the right impression and show you care about maintaining their future home. That way they are more likely to take care of the property too. If possible, a little bathroom upgrade if you can afford it or new appliances In the kitchen can make the difference in increasing rental value.

Be insured

One of the most important things you can do to is protect your investment by making sure you have taken out Landlords Insurance. There are lots of options available; including both buildings and contents cover, accidental damage caused by your tenants and a separate cover for rent protection should your tenant’s fail to make payment.