If you’re a buy-to-let landlord, you want your property to be a good investment. In many ways, the rent you receive from your property will probably be determined by the average rates in your area, as well as supply and demand. However, there are ways to increase your rent while decreasing your outgoings.

Here are some basic recommendations for increasing your property’s rental value.

Rental Yield: What Is It?

Rental yield is the annual rental income expressed as a proportion of the purchase price. It is used by buy-to-let investors to determine the expected return on an investment property.

The following formula can be used to calculate rental yield:

Rental yield = ((Annual rental income – Annual running costs) ÷ Property purchase costs) x 100

• Take the total rent paid over a year and deduct your annual operating expenses, such as mortgage interest payments, upkeep, and letting agency fees.
• Divide this by the cost of purchasing the property. This would include the deposit you put down (or the total amount of the house if you purchased in cash) as well as the purchase charges, which might include stamp duty, survey costs, solicitors fees, mortgage arrangement fees, and furniture and white goods, to name a few.
• To convert the value to a percentage, multiply it by 100.

Here are 5 Ways to Increase Your Property’s Rental Value

The greatest rental yield can be achieved when the annual rental income is as high as possible. If the property earns low rents or is vacant for several periods, its rental value decreases, ultimately affecting the rental value of your property. The following actions will make your property stand out and allow the landlord to charge the highest rents while encouraging renters to stay longer.

#1. Improve the basics

Rental properties are not known for their beauty. That was great when tenants lived for short periods of time, but nowadays, tenants stay in a property for roughly two years, so expect more from potential tenants. As a result, one of the simplest ways for landlords to increase rental income is to guarantee that their properties are well-maintained. A fresh coat of paint in a neutral colour palette, lasting rather than simple furnishings, a modern and efficient heating system, and making the most of any outside space may provide advantages in attracting and keeping tenants.

Landlords must also keep their rental properties in good condition throughout the tenure to maintain the rental value of your property. That includes regular inspections and quick responses when tenants report difficulties. Being a good landlord is a key component of increasing rental value.

#2. Pay Close Attention To The Bathroom And Kitchen

Kitchens and bathrooms that are well-kept and presentable attract high-paying renters and encourage existing ones to stay, which lowers the expense of reletting and possible void periods between tenancies.

Always keep in mind that kitchens and bathrooms in rental properties will most likely grow worn and outdated faster than other areas, requiring significantly more frequent remodelling or replacement than in a private home.

The money invested will pay off because maintaining these rooms’ impeccable condition is essential to maximising the rental value of your property.

#3. Add Extra Bedroom

An extra bedroom is an absolute guarantee to increase the rental value of your property. If your property has enough living space, you could consider adding a loft extension to make an extra bedroom to add value to your rental property, or you could raise the rent by converting one room into a bedroom.

Adding an extra bedroom should increase the value of the home overall as well as increase rental income.

#4. Conduct Thorough Research on Your Target Market

Analysing the local rental market thoroughly may help identify specialised tenant groups that are willing to pay more for the amenities they require or desire.

Pet owners are among the niche groups that can be served the easiest, which could add value to your rental. For the ability to bring their pets, the majority of dog and cat owners will gladly pay a higher rent. Of course, some landlords feel that having a pet may damage the property and end up costing more in cleaning and maintenance than the animal would bring in, thus affecting the rental value of your property. We advise landlords to think about renting to pet-owning tenants.

It might be advantageous to build a “granny annexe” in certain places where renters are eager for multigenerational living and are willing to pay more for it.

Fortunes can be made in the corporate market. As a result of corporate tenants’ need for the best amenities, prices may be higher. Still, the rent is extremely expensive and is due up to a year in advance.

#5. Provide Additional Extras

Providing something that sets you apart from the competition will also raise the value of your rental property.

For instance, you may install a private driveway if parking is limited in your neighbourhood. Given the popularity of working from home these days, adding fibre-optic broadband could raise the value of your rental property. Modern appliances or security systems might attract renters who are ready to pay extra.

Confirm whether renters are willing to pay extra for your type of property in its location and whether your investment will generate enough additional revenue to offset the increased expenses.

Increase Your Rental Income with Glasgow’s Western Lettings!

Learn five easy ways to increase the rental value of your home. To find out how, give us a call at 0141 357 0436.

Your property is our top priority at Western Lettings Glasgow!