Seven tips to maximise your rental income
Every landlord should be looking to maximise their rental income but simply raising the rent itself isn’t enough or a suitable tactic for many landlords. Here are seven tips to maximise your rental income that will allow you to offer a better service to tenants while improving your rental yield.
Ensure the property has been thoroughly cleaned before placing on the market
If you are looking to attract the best sort of tenant, which can allow you to charge more for rent and minimise the likelihood of having a disruptive or difficult tenant, you want to present your property in the best possible manner. One of the most important ways in which you can do this is by cleaning your property from top to bottom so that it is immediately attractive to all potential tenants.
There is also the bonus of the fact that a clean property is more likely to be kept in good condition by the tenant. There is a psychological impact of carrying out a thorough clean of your premises and this will hopefully save you time and money in the long term. Any landlord looking to maximise their rental income in the long term will find that investing in a deep clean at the beginning of the tenancy will pay off.
Landlords have the opportunity to offer furnished or non-furnished accommodation and many landlords decide that not investing in furniture is right for them. This saves them money at the start of the process, it means that they have fewer items to be concerned about in the property and if a potential tenant already has their own furniture, there is no need to worry about storage or them deciding against moving into the property.
However, unfurnished property carries a lower rental fee and in the long-term, this may see you losing out on money. It is possible to buy affordable and reliable furniture from many leading furniture retailers. This allows you to create a homely scene in your property while charging a higher rental fee every month. You should find that the initial outlay on the furniture is more than compensated for by increased rentals fees and over time, this equates to a lot of property.
Carry out repairs quickly and to a suitable level
Many landlords decide that carrying out improvements or repairs is an expense that harms their rental yield and will only act if there is an emergency. This may allow a landlord to save money in the short term but it is a false economy over a longer period of time. If something needs repaired, it isn’t going to fit itself and this means that at some point it could become a hazard in the home or it could cost a lot more money to fix.
There is also the fact that a tenant may decide that you aren’t showing them or the property enough respect, which could subconsciously lead them to treating the property in a poorer condition. Whether this causes more damage or leads to a tenant moving out sooner than they would have planned, these outcomes will harm your profit levels. There is also the fact that if you need to find new tenants, you’ll need to provide them with suitable accommodation, which means repair work will have to be carried out at some point.
Examine the local rental market and price accordingly
You should look to ensure that you are pricing your property effectively. Some landlords come to a price based on their outgoings but if the average rental fee in your local area or for this style of property is higher, you should charge a higher fee.
There is a need for landlords to review their local market on a regular basis because if your property isn’t priced effectively, you are missing out on the chance to maximise your income.
Offer additional services to your clients
One good way to bring in additional income is to provide additional services to your clients. If you can offer broadband and Wi-Fi for your tenants, this can save them money and give them one less thing to worry about. You may be in a position to obtain broadband, phone or TV packages for the entire property, allowing you to make a profit while providing a worthwhile service for your tenants.
Other services which may be of interest to tenants include an ironing or laundry service, gardening services, mail or item collection service. If there is anything that you can offer to your tenants to make their life easier or save them time, you’d be surprised at how much they may be willing to pay each month.
Obtain feedback from your tenants
If you are looking to find new services to offer to clients or how you can better meet the needs of your tenants, ask them questions. Landlords have a perfect opportunity to obtain feedback about their services from tenants but far too many fail to ask questions about what tenants really want from their landlord.
If you know what tenants want, you can offer it and charge a fairer price for this specialist service.
Can you be flexible with rent collection
If you find that your tenants are late with their payments, are you flexible enough to tolerate this? It may be that moving the rental collection date to a later date in the month may be beneficial, allowing you to retain tenants for a longer period of time. It may even be that you can offer tenants the opportunity to pay at an agreed later date in the month but only if they pay an increased amount. This may be suitable for some tenants as it provides them with added flexibility. This will all depend on when your bills are due and when you need to receive your rental income but if you can be flexible towards your tenants, you may find you can bring in more income from them.