Investing in rental property might seem like a risky thing to do in the current economic climate. Property prices are on the decline after years of near-zero interest rates, and so having a property to let out isn’t the sure-fire route toward profit that it once was.
But if you’re a landlord who’s willing to make strategic investments in their property, it’s easy to turn a modest investment into a respectable earner.
Why is it important to increase the value of your property?
Given that inflation has been in double-digits for most of 2022, any asset whose value in pounds is constant is actually, in real terms, going to be declining. By commissioning an annual rent review, you might determine whether your properties are getting all they might in terms of rental income.
By maximising the value of a given property, you’ll be able to charge more to your would-be tenants. Moreover, should you decide to cash in, you’ll be able to recoup a larger fee!
Methods for increasing the value of your property
Stay on top of inspections
If you allow your property to fall into disrepair, you’ll have difficulty selling it to would-be tenants. Moreover, you might find that you run into problems which take the property off the market, and land you in legal difficulties. While the right landlord insurance will offer you some protection, it’s still a good idea to book regular inspections by qualified boiler engineers, and to repair damage to the fabric of the building promptly.
Rent furnished
You can often make more from a rental property by providing the furniture yourself. This is a one-off investment that might pay dividends in the long-term.
Allow pets
Pets will inflict damage, but at the same time they’re beloved by their owners. By allowing them, you’ll throw yourself open to a wider field of potential tenants – which will help to drive up your profits. By making this change, you might put yourself ahead of future changes in the law.
Prioritise the kitchen and bathroom
The rooms that tend to attract the most moisture will tend to look the dirtiest the quickest. You can set yourself apart from the competition by prioritising cleaning and repairs in the kitchen and bathroom. These rooms are often used as a yardstick for judging the whole property.
Adding a bedroom
In certain buildings, it might be feasible to throw up a wall and add an extra bedroom. Renting to several tenants for a low price might turn a greater profit than renting to just one for a high price.
Do your research
It might be that there’s a local market for renters which isn’t being catered for. For example, if there are lots of tenants locally looking for somewhere to lodge their elderly relatives, you might find it worthwhile to add an extension for those relatives to live in.
