Make your property work for you by generating a healthy rental yield.
In order to make sure your property performs well as part of your investment portfolio, you will need to ensure that it generates a healthy rental yield. The rental yield signifies the income you make over the course of the year and you can help increase this by ticking off the following requirements.
1. Find a letting strategy that suits you.
As a landlord you can rent your property on either a short or long term basis. A short term let can be a matter of days up to six months, and long term is anything thereafter. Short term lets are attractive as they come with a higher price tag, but they come with extra management costs such as cleaning, changing tenants plus they could encounter more void periods. Simultaneously check out the competition and see if there is a gap in the market that you could fill. You need to do the best to make your property stand out from the other listings in order to let it quickly and start generating an income.
2. Plan in advance.
Just because your property is empty, does not mean that it will be ready for marketing. If you jump the gun and the property is not showing at its best, then it is likely that it will not let as quickly or it will for a lower rent. Take time to ensure the property is looking presentable and photographs well for marketing purposes to attract people to view. The more people that view, the quicker the property will rent but it only takes one person to walk through the door to want to secure it. First impressions are important, and properties that are in good condition tend to appeal to good quality tenants who look after the property during their term.
3. Select the right mortgage product.
Should you have a loan on the property then consider what the best mortgage is for your situation. For example, fixed rates mortgages give certainly of the monthly outgoings so are preferred for some buy-to-let landlords enabling them to plan accordingly and calculate what offer they can accept on the property.
4. What is your market?
If you are aiming for professional tenants in the centre of the city then vicinity to the mass transit system tend to be a number one priority. Families are likely to want more space and an outdoor area. Depending on your property will dictate who the tenant is so make sure the property fits the bill in order to allure the right sort of tenants to it. It is also important to choose a building that is well maintained and communal facilities are in good condition in order to attract tenant and retain existing tenants too. Smaller buildings also mean less properties, which creates less competition if there are a few buy-to-let investment properties in the building.
