Over the last few years it has become increasingly difficult for first-time buyers to get onto the property ladder, and despite government incentives to not only help people to buy property but to also increase the tax liabilities for investors buying a second property, there is still a huge amount of demand for good rental accommodation as a long-term housing solution.
If you are a landlord and have a rental property, in our experience here at Clyde Property, there are several things you can do to ensure you are getting the maximum return on your investment.
Understanding your market
We believe that one of the most important things to consider is how to attract tenants, and to do this you need to understand the type of tenant that would want to live in your property type and location.
If your investment is located near to a college or university such as the West End, it may be more suitable for students. There may be plenty of properties available for undergraduates, but overseas students will often have the budget to rent a more comfortable, well-maintained home. If your property is in a financial district or close to commuter links you’ll find that your target market is likely to be young professionals looking for a modern apartment, in excellent condition and with mod cons including high-speed internet and good security.
Make your property stand out
We find that tenants are looking to stay in the same place for several years, and are looking for something to call home rather than a stop-gap, so are looking for something clean, comfortable and well-maintained. One of the most economical ways to increase the rental income on your investment is to give it a freshen up with neutral paint colours and update the flooring.
A tired out-of-date kitchen or bathroom can really put tenants off, as most people tend to spend much of their time cooking, eating and socializing in the kitchen. In addition, a tired, run-down bathroom is a huge turn off for tenants. An en-suite is very appealing and can enable you to add a premium. Not only can these two rooms have an impact on the rental value, but it can encourage a tenant to renew their contract, reducing re-letting costs and potential void periods.
The more rooms you have, the higher the rental value. Therefore, consider getting advice as to whether you can add rooms by building an extension or converting a loft or garage into an extra bedroom. It could end up paying for itself over a period of time. In addition, it will increase the property value, boosting overall returns. Any such changes will, of course, require that landlords secure any required planning permission and ensure it passes building control and fire regulations.
Many people consider that tenants are renting because they are on a budget, however, in some areas, renting can be cheaper than buying. If you have access to a premium tenant market, it could be possible to secure more rent by providing a higher than average spec by adding state of the art appliances, a high-end décor, brand name appliances and security systems. We can help you to work out how to ensure your property delivers enough additional rent to cover the higher costs.
High-speed internet is also essential when trying to achieve the best price for your property, it’s one of the most common queries we receive when potential tenants view a property. With many people streaming movies and music as well as working from home, it’s essential that tenants have access to high-speed internet. For many, this is a deal-breaker!
Finally, Scotland is a pet-loving nation, and so it’s worth considering allowing cats and dogs into the property. However, we can advise as to whether this is necessary as your property may be in high-demand and you won’t need to adjust this stipulation.
Talk to our letting experts at Clyde Property if you have any questions about the rental value of your property and to find out about how we can effectively manage your investment so you can spend time on the important things in life. In the meantime, take a look at our Letting Guide.
Clyde Property is a leading independent, multiple award winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just calltoday, for friendly, impartial advice on finding your next dream home.