Rental yield measures how much potential return or income a rental property can generate each year. It can be a useful indicator in determining the ongoing return on your investment property and could be used to compare different investment properties.
Here's our top 5 tips for boosting your rental yield.
- Invest wisely
Investing in property requires a lot of research, hard work, and dedication. With each new purchase you will become more experienced and better equipped for the next investment. . Nevertheless, it is always important to treat every new property as a business decision by carefully studying each potential investment as well as negotiating where possible in order to maximise your return.
- Make your property attractive to tenants
One of the best ways to maximise your return is to minimise the number of times you have to find new tenants – marketing costs, void periods and greater wear and tear can impact the overall yield. So, treating tenants like valued customers and making sure they have an exceptional experience when moving in and living at the property will help ensure they stay for a longer period and treat your investment like their home.
- Invest in up-and-coming locations.
Another way to achieve the best yields is to buy property in up and coming towns and cities - where there is planned regeneration and government investment. Examples include redevelopment of city centres, government business initiatives and infrastructure such as HS2 and Crossrail. Areas such as these provide the prospect of increased capital growth and greater rental values for the future.
- Review your outgoings
Reviewing your outgoings can make a big difference to what you have coming in so try and shop around each time your mortgage or insurance products are coming up for renewal.
- Have a clearly defined profile for potential tenants
It’s a good idea to identify who your potential tenants are. For example if your property is a one bedroom purpose built flat in a city centre location your tenant profile will be a single professional or couple. If your property is a house in a residential area close to good schools, your tenant profile will be a family with children and possibly pets. By marketing to and catering for the right demographic, this will ultimately help you to get better value from your property.
The haart Investor Services Team are here to help customers obtain more information about how to maximise their investments in the current property market for more information contact Kate Hurles on 079 6012 0267 or email Investor.firstname.lastname@example.org