Are you a new landlord? Or, do you just want to get more from your current properties? Either way, there are a few things to do to maximise your rental income. In today’s guide, we’re going to reveal the best tips for getting the most money back from letting out a property. Read on to find out more.
Connect the tenant with the location
Most advice on letting properties out there will explain the importance of location. However, while the location of your rental property is important, it’s not the be all and end all. You have to combine it with the type of tenant you want, too. It’s still possible to maximise your income from property in a more rundown area, as long as you fill it with the right tenants. For example, students will want to live near other students, so you can think about charging less and turning a four-bed house into a five bed instead. On the other hand, it’s unlikely you will attract young professionals to quiet, leafy suburbs near good schools. Go for families instead.
Look after your tenants
One of the biggest cash drains you will experience as a landlord is when you have an empty property. In fact, the whole process of finding new tenants when old ones leave is incredibly expensive. You still have to pay your mortgage, regardless of whether you property is empty. And, advertising costs and maintenance costs will increase every time you need new tenants. It makes sense, then, to keep your current tenants as happy as possible. Happy tenants also look after your property with a lot more care and attention.
Free up your time
One thing many new landlords don’t realise is that being one takes up a lot of your time. And, time is money. Let’s say you have your own business, as well as being a landlord. If your property is eating into your work time, you will lose money in the long-term. There are travelling costs to consider, too. It all adds up to an expensive business model, so see where you can cut things a little. It’s why so many landlords choose management companies to look after that side of stuff for them. According to Brinkleys Estate Agents, you should choose one that lives locally so that they can act as a point of contact between you and your tenant. It’s an easier way of going about things, and it will free up your time to concentrate on earning money yourself.
Keep it fresh
You should always put aside money each month for renovations in the future. In an ideal world, you should be looking at making upgrades at least once every five years – but maybe even more frequently. Wear and tear happen, and it’s a sign of being ‘lived in’. But, there are limits. Dated fridge freezers, decor, and cupboards will all impact on your ability to let to a new tenant. Keep things fresh – and you should reap the rewards.
Hope this guide has helped – good luck with the property!