From Painting to Building an Extension, What Is Your Best Option?
According to a study by major insurers, the average tenancy in the UK lasts around 18 months. Many of the tenancies of our landlord clients last much longer. Tenants are looking to find a home. Landlords want to maximise their rental income. The two objectives don’t have to be mutually exclusive.
As tenants are looking for long-term rentals, they are more likely to be fussy about the property they pick. Offering furniture packs could help you to charge premium rental prices. However, by making a few improvements to your property you can increase your rental income by meeting more of a tenant’s needs.
Here is our pick of the best ways to increase your rental income by improving your tenant’s home.
1. A Lick of Paint
Your rental property is in constant use, and over time a home loses its sheen. This is no fault of your tenants; walls get grimy no matter how tidy you are. You likely have also picked neutral, light colours to appeal to the widest range of tenant and make the room appear bigger. Unfortunately, this also means dirt shows up more easily.
A cheap way to give your property a facelift is by giving it a new coat of paint. Interior designers suggest that each room should be repainted at a different frequency. Hallways and corridors see the most amount of wear and tear and should be painted every two to four years. However, even if they see a lot of use, living rooms and dining rooms that have furniture protecting walls can wait to around every four years and longer.
2. En suite Bathrooms
Your property may not have en suite bathrooms. If there is the space to add an en suite, even if it means making bedrooms smaller, this could increase your rental income. If you are the landlord of an HMO, this is especially desirable. Tenants value their privacy, especially if they are not acquainted with the people they will be living with.
3. A Kitchen or Bathroom Makeover
For many tenants, kitchens and bathrooms are two of the most important rooms for many tenants. Worn-out, dated or poorly maintained kitchens and bathrooms are off-putting to tenants. However, modern, clean kitchens and bathrooms allow you to increase rents as many tenants will pay a higher price for premium facilities. This strategy is a medium- to long-term win.
4. Target a Specific Audience
Some tenants are willing to pay more for a property that ticks all their boxes. If you have a property that is suited to a specific audience, then target that audience. For example, if you have a granny-annexe on your property, you can target a multigenerational market – families that include either an older or younger member (such as a grandparent or young adult) who values their own independence and level of privacy.
5. Add Parking
For larger families and those owning multiple cars, it can be difficult to find street parking in many areas. In such circumstances, tenants value the convenience and safety of having their car in front of their property. Increase your rental income by adding a space on the property for tenants to park their car so they no longer need to search for an on-street parking space.
6. New White Goods
Including top-quality white goods and offering added extras such as a dishwasher can be the reason to charge a higher rental price. Offering a higher-spec property than your competitors can attract tenants who are willing to pay a premium for extra comfort and convenience.
According to Savills, households with a mid- to high income will be more likely to pay additional rent for a larger property. Having additional space is especially important to families with children. If this is your target market, consider adding an extension to your home to add additional space.
Extensions can seem like a costly way to increase your rental income. However, they can also add significant value to the overall price of your property, putting you in a much better position should you wish to sell later – extra rental income, and higher resale value!
If you wish to increase your rental income, there are many options available to you – from the fast and relatively cheap new coat of paint to more expensive options like an extension. When considering how to increase your rental income, think about who your ideal tenant is and what improvements would most appeal to them, and then get cracking on the work.
You could, of course, consider how property management might also improve your net rental income and your lifestyle. You’ll have more time to enjoy family, friends and hobbies and sleep soundly at night knowing that your property is being managed professionally. Effortless property management really could change your life as a landlord. To find out how to contact Ezytrac today at +44 0 1522 503 717.
Yours in Effortless Property Management,