7 Ways To Increase Your Rental Income and Add Value To Your Property
Finding ways to increase your rental income and add value to a property is the holy grail for landlords. With the UK government reducing tax breaks and increasing stamp duty rates, landlords need to think of all the possible ways to squeeze profit from their investment.
See below for our 7 quick & easy factors landlords need to consider to generate extra rental income and maximize value.
1. Front appearance of the property
The outside appearance of the property is the first aspect tenants see and as everyone knows, first impressions are key.
Improving the appearance starts with a few simple changes to the outside.
For example, mowing the grass, painting the doors, trimming any bushes, replacing door numbers or adding some plants.
These simple changes are inexpensive and can help maximise the value of your property and help to get the property rented quickly, at a higher rate.
2. Reduce letting agent costs
One way to increase your rental income, is lower your costs.
A substantial ongoing cost most landlords undertake are letting agent fees.
The fees will depend on the agent chosen and the services undertaken. Obviously the more services a letting agent does, the higher the cost.
As switching landlords can be tricky, especially when exit fees are included within agreements, it’s important to choose the right letting agent from the get go.
Landlords can compare property agent fees & services on Rent Round. Comparing fees is free, it takes 30 seconds and can save landlords a shed load of money.
3. Keep the layout simple
When decorating the inside of the rental property, treat it as if it was a blank page. It needs to appeal to a wide range of people, so you must keep in mind it shouldn’t just appeal to you as the landlord.
You can do this by the use of neutral colours for the walls and furniture.
This is better than putting in ‘statement pieces’ that only appeal to you, as that could put off potential clients.
This adds value to a property by suiting what the customers want and what looks good to them. If the property looks good to them they will be willing to spend more money for what they want.
The more people that want the property, the higher the value.
Above there are two pictures shown, the first picture shows a simple neutral coloured living room that contains only two main colours which is cream and grey.
But the second picture contains around five different colours and on the walls there are five different pieces of art.
It’s better to decorate your property as the first picture which is neutral and appeals to more people, rather than the second picture which is specific.
4. Good quality advertising to is key of to increasing your rent
Our 4th way to increase your rent and probably the most important, is advertising.
The most popular place buyers and tenants look is online. So it’s key to make sure that the property photos are of high quality.
The picture of the property is the first thing that comes up, so make sure that all of the aspects of the property are included in the first cover photo.
Good photo quality is making sure that the lighting in the photo is spot on and also making sure that the photo is taken at a good angle.
Pictures that are taken head on can make the property look small.
Here are some pictures taken from property listing websites.
As you can see all of them are high quality images and they are taken at a slight angle, you can see every outside feature of the property.
The more buyers & tenants you attract to your property, the more the potential for higher demand and therefore a sure fire way to increase value.
5. Ensure that the house smells good and has great lighting
It’s obvious when showing a house to a potential client that you should clean it, but also take into account the smell.
Studies show that your sense of smell is linked to memory so you can light some candles or spray some air freshener to make the property smell nice.
The smell of the property will stay in their mind as they will remember your listing.
Also, make sure the house is well lit. Dark rooms make the space look smaller. So make sure the lights are on and blinds are open to make the property look as big as possible.
6. Research potential tenants
When looking for ways to increase your rent you must be mindful of you’d rather have good tenants that pay less, than bad tenants that pay you a little bit more.
Bad tenants you may have to evict, costing you money, plus repairing damages.
Furthermore you would have the house vacant until you find another tenant making you lose out on money. It’s better to have a good tenant that is paying less rather than a bad tenant who will make you lose out on money in the long term.
To prevent having this problem check if tenants have any criminal records, any evictions and get references from previous landlords or employers to check that they are a suitable tenant for your property.
7. Allowing pets to increase your rental income
In the UK roughly 40% of people own a pet, so opening your property to pet owner’s increases your target market and interest in your property.
Although some pets do cause damage you would be able to cover this damage with a surcharge.
Landlords charge ‘pet rent’ on top of their rent, for having a pet inside the property.
It covers the cost of any damage and also ensures that you are maximising the amount of money coming in, you could charge around £50 per month per pet.
You could also enforce rules that only allow certain breeds of dogs or sizes and the number of animals allowed in the property, this helps to make sure that your property is protected against damage while letting pets live in it at the same time.
Overall, the more you can raise the rent & value of your rental property and lower costs, the more profit you will make (captain obvious!).
Good management of the property reduces costs in the long term and keeps tenants content.
If you’re looking for a letting agent, Rent Round compares property agent fees & ratings for you, free of charge.
Using the strategies listed above can help you implement the best ways of increasing your rent and adding value to your rental property.
About the author
Raj Dosanjh is founder of Rent Round, a letting agent & property manager fee comparison site. Raj has a background in banking & finance alongside his property business. He also has a passion for martial arts & runs his own Brazilian Jiu-Jitsu academy.
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