If you are a buy-to-let landlord, you want to ensure you get the most out of your investment – and that means achieving the best possible rental income from your property. However, it can be difficult to attract new tenants at the rent rate that you want. With over four million properties being rented in the UK, you have a lot of competition on your hands.
So, how do you make sure that you are getting the maximum rental value for your property? As an experienced letting agent in Croydon, we have put together a guide on how to help your property stand out from the crowd, and how to add value and appeal to potential tenants
Invest in areas that will appeal to tenants
Since the pandemic, more people have taken the time to consider exactly what they want from their homes. Rented or mortgaged homes and properties are no longer simply a base to leave your belongings – people truly want to focus on making their homes feel cosy, practical, and modern.
For renters, space has become one of the must-have aspects of any rental property that they are viewing. If you want to attract a higher rental rate, then you need to consider how you can maximise the space in your property. You can consider:
- A multi-functional garden with space for entertaining
- Larger bedroom spaces with ensuites
- Open plan kitchens and living rooms
- A home office, either in the property itself or in the garden
- Improved and more modern bathroom spaces
If you have a budget set aside for property improvements, then try to focus on the areas that will be important to any potential tenants.
Renters don’t simply want to settle anymore – with the high number of properties on the rental market, they have the luxury of being able to choose the right space that suits their needs.
Use a professional cleaner
Obviously, all tenants will expect their new rental property to be clean when they first move in, and having a professional cleaner come in and deep clean the property in between tenants is commonplace. However, more landlords are going the extra mile when it comes to cleaning, and they will have a contract with a local, professional cleaner to come in and clean a few hours a week, or do a one-off deep clean once a month. If you want to attract a better calibre of tenants and make your property really stand out, then having a contract with a professional cleaner will certainly be appealing – and it will help your property to justify slightly higher rental rates than others in the same area:
Invest in storage solutions
One of the first things that many tenants will look for when viewing a property is how much storage space there is available. This is a simple change that is easy to make and will highlight to any potential tenants that your property is a home and not simply somewhere to stay for a few months. There are several ways that you can consider adding storage to your property, and most of it doesn’t eat into valuable storage space! You could look at:
- Installing fitted wardrobes into awkward rooms with space that is usually considered ‘dead’. Chances are a tenant won’t want to fork out for special-sized wardrobes, and having this space already filled with storage will be extremely appealing.
- Adding fixed shelves to rooms with high ceilings will give you more storage space and will take away the risk of tenants performing dodgy DIY and potentially ruining your walls.
- Allowing tenants to utilise the loft space, or adding shelves into any empty eaves that would potentially not be able to hold any furniture at all.
As an experienced lettings agent in London, we can confirm that properties which maximise the storage spaces available will have a greater rental value – and won’t be on the rental market for long! By investing a little bit more you will be able to see a higher return with not a lot of effort.
Offer additional extras
Another easy way to increase your rental value is to offer additional extras over and above what your competition will offer. There are lots of little ways you can add extras, and some larger ways if you are willing to invest a little bit more! Some ideas include.
- Adding a private driveway – if parking is a premium or it is difficult to find a parking space in your area, consider adding a private drive if possible.
- High-speed fibre optic – with homeworking becoming more and more popular since the pandemic, you could consider installing better broadband to stand out from the crowd.
- If there is space, consider providing white appliances such as a dishwasher, washing machine and tumble dryer. Tenants are often willing to pay more rent due to the convenience of having these items already in situ rather than trying to find and move them themselves.
- If your property is in a block of flats that doesn’t have a communal door entry system, then try and arrange with the other flat owners to get one installed. Many people will be prepared to pay a higher rental price for the security and peace of mind this system brings.
- Install new floors such as laminate, stone, tile, or hardwood in the rooms with the heaviest foot traffic as this will significantly reduce the cleaning costs in comparison to carpets, not to mention the increase in rental value that comes with the more stylish décor!
As you can see, there are lots of large and small ideas that you can consider to help increase the rental value of your property – and many of them don’t require much effort at all!
Use a letting agent
While you might think handing control over to a letting agent means paying out more money, this couldn’t be further from the truth in this day and age! These are turbulent times for landlords, and in the face of tighter margins and more regulations, losing a small amount of your rent each month is an attractive and cost-effective solution for many landlords. By employing a letting agent such as Denhan, we can ensure timely payment of the rent in full each month, help you to enjoy minimal empty periods, and help to deal with any customer disputes so you don’t have to. We can use our extensive network to ensure that your property is getting the maximum rent possible for your area and is getting the exposure required to attract the right tenants. While properties rented through agents are generally priced higher, we will use our local knowledge and expertise to keep an eye on other properties in the area to help you maximise your profit. We will maintain constant communication with you from start to finish and do most of the work for you – what is not to love?
Of course, it is possible to benefit from your rental property without using a guaranteed rent letting agents, but is it really worth the hassle? Why not simply enjoy all of the perks of being a landlord without all the stress – all you need to do is sit back and let us handle the rest.
Frequently Asked Questions (FAQs)
What is the rental value of my property?
The rental value of your property refers to the amount of rent it can realistically command in the current market. It depends on factors such as location, condition, amenities, and demand. You can estimate this by comparing similar listings or consulting a local letting agent like Denhan for an accurate appraisal.
How can I find the rental value of my home?
To find the rental value of your home, check online rental platforms, speak with local estate agents, or use rental valuation tools. A letting agent can help assess your property’s features and market potential to determine the right rental value.
How to increase rental value of my property?
Improving your property’s layout, adding modern fixtures, and offering added conveniences like high-speed internet or parking can significantly increase rental value. Investing in cleanliness and storage also boosts appeal, allowing you to raise the rent.
What is the rental value of my house based on improvements?
If you’ve made enhancements like a home office, open-plan kitchen, or fitted wardrobes, the rental value of your house will likely rise. These upgrades add practicality and comfort, increasing demand and justifying higher rent.
How to increase the value of your rental property with minimal investment?
Simple updates like deep cleaning, repainting, and installing modern lighting can make a big impact. Adding white goods or improving bathroom aesthetics also increases value without requiring major renovation.
Does maximizing rental income require major renovations?
Not always. You can maximize rental income by improving storage, ensuring cleanliness, and offering extras like broadband or secure entry systems. These small investments can yield better returns without extensive work.
Is professional cleaning worth it to increase rental value?
Yes, professional cleaning makes your property move-in ready and more attractive to quality tenants. A consistently clean home signals good maintenance, justifying a higher rental value of your flat or house.
What is the best way to boost rental value for my property quickly?
Quick wins include offering furnished options, improving curb appeal, and fixing any obvious repairs. These actions enhance first impressions and make your property stand out in a crowded market.
Can a letting agent help increase rental value for my home?
Absolutely. A letting agent understands market trends and can suggest changes that add value. At Denhan, we help landlords set optimal prices, find better tenants, and reduce vacancy time – all contributing to higher rental income.
What’s the difference between rental value and rental income?
Rental value is the estimated rent you can charge, while rental income is the actual amount you earn after costs. Enhancing your property helps bridge the gap, ensuring your rental income matches the potential value.