12 ways to increase the rental income on your Glasgow property
Rental yield is a key metric for any buy-to-let landlord. The better the yield, the more likely you are to show a profit after all your costs such as mortgage payments, fees and repairs and maintenance charges. According to Scottish property website Citylets, yields in Glasgow range from 4.5% to 6.7% – a good rate of return on your investment compared to current savings rates.
You can work out the yield for your own property by subtracting all outgoings from your yearly rental income, then dividing the result by the purchase price of the property. Multiply by 100 to express the yield as a percentage. Alternatively, use an online rental yield calculator to do the maths for you.
While the yield generated by your rental property will vary depending on location, there are some things you can do to maximise income, regardless of postcode. Based on our experience of the current Glasgow market, read on for 12 effective ways of boosting rental yield, whether you’re a seasoned landlord or just starting out on your property rental journey.
1. Know who you’re targeting
Before you begin marketing your rental property to tenants, it’s a good idea to be specific about who you’re looking for and to make sure the property works for them. A city centre flat is probably going to work best for a young professional, so get clued up about what they might be looking for and make sure you tailor the property effectively.
2. Get the location right
If you’re looking to purchase a buy-to-let, we can’t overstate the importance of location. By choosing an up-and-coming postcode area, where prices haven’t peaked yet, you can minimise costs and increase your yield. But be warned, getting this right means extensive research.
3. Minimise your spend
Shop around for your mortgage, insurance and fitting out the property to make sure you source the best deals, and aren’t overpaying on outgoings.
4. Maximise the space
An extra bedroom or bathroom will increase the property’s appeal and mean you can ask a higher rent, so consider whether this is an option – but make sure that any renovations are a good and affordable investment for you.
5. Offer something extra
Get ahead of the competition by offering something extra. Adding smart doorbells and lighting, squeezing a dishwasher or tumble drier into the smallest space, securing high speed broadband or putting in plenty of charging points could all be worth the investment – but always do your sums.
6. Make it appealing
While you do need to be wary of how much you spend, the nicer the property the higher the demand and the more you can ask in rent. Think about upgrading the bathroom and kitchen – at least make sure the place is freshly painted and consider new carpets.
7. What about a house in multiple occupation (HMO)?
Renting out the property as an HMO (to unrelated tenants from different households) will probably bring in more revenue. However, you must follow the rules when it comes to HMO licensing in Scotland.
8. Give the place kerb appeal
As with selling a property, first impressions count, so make sure the rental looks inviting from the outside with clean windows, a freshly-painted door and a tidy front garden.
9. Offer outside space
Gardens, patios and even balconies are now prized more than ever, so if you’re looking to buy a property, finding one with outside space could help you secure tenants quickly. However, do make sure it’s low maintenance.
10. Consider allowing pets
Pet-friendly rentals are hard to come by. Allowing responsible owners to keep dogs or cats in the property, if appropriate, could open you up to a larger pool of tenants and increase demand.
11. Show home office potential
Working from home is still a big part of many people’s lives, and work space is a selling point. If yours is a furnished property, adding a study or work area could give your property extra appeal.
12. Minimise the voids
Increase your income by keeping the home tenanted as much as possible. Be a helpful, easy to contact, a good communicator and on top of repairs, and your tenants may stay for the long-term giving you plenty of notice if they want to leave.
If you’re a Glasgow landlord or prospective one, we can help you maximise the return on your investment. Talk to us about the services we offer – we’d be delighted to advise you.