Landlord advice - maximising your rental profits
Buying property to rent out is a huge investment. With this in mind, landlords need to be aware of how to maximise their rental profits. One of the most important points is reviewing any investment on a regular basis. This will make sure landlords are receiving the maximum potential returns on a property or properties.
How to make the most of your rental property:
1. Let the property as quickly as you can
Get the most out of your rental by minimising unoccupancy. When you advertise, make sure to include all points that help to entice prospective tenants. Putting the property on a website means it will be seen by a wider audience which in turn should increase your chances of a quick let. Remember letting agents have the experience and know-how of how to put a rental property on the rental market.
2. Redecorate and upgrade the property
If you are unsure of whether to redecorate or not, the easy answer is 'just do it'. The value of the build will likely increase if it’s in good condition and be more appealing to future tenants. Kitchens along with bathrooms are always worth updating or upgrading. They create a big impression on the first viewing so put them at the top of your renovation list.
3. Maximise income
If you’re after a healthy return, you need to get the maximum rental income. This doesn’t necessarily mean increasing the rent annually. It could frighten people off. If your tenants pay the rent on time each month and want to extend their current agreement, keep the rental figure reasonable. Professional letting agents understand the market trends of what can be achieved for enthusiastic landlords. They will make sure you get the best return from your investment even though the rental market is always changing.
4. Tax incentives
You need to know that some deductions are allowable on rental properties. To avoid paying too much tax, it’s a good idea to get in touch with a reliable accountant or HMRC for advice about this. Landlords can make certain deductions from rental income before they calculate any profits. These deductions include:
- Mortgage interest
- Buildings and contents insurance premiums
- Letting agent fees
- Maintenance and repairs
- Furniture wear and tear
5. Protecting a rental property
If there are any disputes concerning unacceptable wear and tear or damage at the end of the rental agreement, you need to have protection. Why not draw up an inventory using an inventory agent? He or she will follow the Association of Professional Inventory Providers (APIP) code of practice. This is a sure-fire way to help avoid any disputes.
To achieve high returns, consider these points and engage the services of a knowledgeable letting agent. It’s better to get professional advice and help on any investment, especially property rentals. Reliable letting agents will be able to manage the rental for you, maximise your rental profits and control the costs.
To find out more about our services, give us a call.