If you are a landlord in the UK, you probably would have had this question in your mind: How to maximise profits on rental property? To make the most of your rental property, you should have the right strategy that generates more money, and increase the value of your property.
It is a misconception among landlords that increasing the rent is perhaps the only way to be profitable. There are several things you can do to get the most out of your rental property. This article will show you how to make more money as a landlord while keeping your tenants happy. So read ahead!
3 Actionable Tips to Maximise Profits On Your Rental Property
1. Reduce the Vacancy Period At Your Rental
No surprises here. When your rental property is vacant, it will not generate money. As a landlord, your main goal should be to retain tenants and reduce the vacancy period. Doing this will not only increase profits but also save time as finding tenants can be time-consuming. Not to mention the fees you need to pay if employing a real estate agent.
Here are a few things you can do to reduce vacancy periods and maximise profits on your rental property.
2. Be wary of property maintenance and property management
Property maintenance is the biggest nightmare for landlords. Even though it is non-negotiable, regular property maintenance costs can easily go out of control. Some renters may overestimate repair work, and you should not agree to each and every maintenance request before checking it yourself.
Hiring a maintenance crew or company can be expensive, depending on how they bill their service. Sometimes you won’t need any repair work for a particular month but could end up paying a retainer.
The best way to combat this is to do your own maintenance as much as possible. If there are minor repairs such as replacing, bulbs, doing it yourself could save you hundreds of pounds. It would be even more beneficial if you live near your rental, as it cuts down on transportation costs.
Do your own inspections and ensure everything works fine. Tenants do not always report damages – especially if you haven’t built a rapport with them. Indeed, about 46% of landlords say so! Damages that are left untreated now might escalate in the near future and incur higher costs for replacements and fixes.
This applies to managing your rental property too. It is easy to hire property managers, but not everyone can afford the bill. Yes, having your property managed by professionals gives you a sense of peace and is convenient. But it’s not so fun when they charge a significant percentage of your monthly rental.
However, this does not apply to all landlords, as it depends on expertise levels and availability of time. But whenever possible, getting your own hands a little dirty can significantly increase the net profit down the road and maximise profits on rental properties.
In case you have to hire professionals for maintenance, plan ahead and establish a trusted network of contractors and craftsmen immediately. We say this because accessing contractors is the second biggest challenge when it comes to property maintenance.
3. Give your rental property an upgrade
The more facilities your renters enjoy, the longer they are likely to stay. It will even increase the chance of getting a tenant who is willing to pay more.
An upgrade does require further investment, but it is a one-time cost. And since you can increase the rent after an upgrade, the returns will be more than what you get at present.
Moreover, a property upgrade will increase its current value. And that’s something any property owner would like.
Here are some ways to upgrade your rental property and be more welcoming.
How Can Adjoin Help Landlords Maximise Profits On Their Rental Property
Most of the landlords we have spoken to say that finding a quality tenant is the biggest problem they have. Adjoin’s rent-to-own scheme comes in handy as the tenants we find have equal stakes in your property.
Our tenants rent your property with the goal of buying it from you after a test-drive period. Hence, maintaining the property is in their best interest, due to skin in the game.
Simply put, we find tenants who will pay higher rent and cost you less. As a landlord partnering with Adjoin, you get the best of both worlds.
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