Coronavirus: sell or let your property safely with Open House Leicester and learn about how we're carrying out viewings and valuations. FIND OUT MORE
The higher the value of your rental portfolio, the higher the chances are of your application becoming approved for future property investments and purchases. Ultimately, the trick to this property strategy is to always have a plan for bringing money back into your pot so that you can re-invest it and grow your property portfolio.
In this article, we look through some of the best ways to add value to your rental portfolio with some top tips to ensure your investments grow and stay healthy.
Whilst it’s a great idea to be ambitious and aim high, you’re going to want to remain sensible and start small. Begin with a small investment, such as a one-bedroom house, then eventually work up to bigger investments once you’ve got the hang of it. Starting small will mean that you’re in a positive financial position and can build your rental portfolio over time, without the risk of financial losses.
However, it’s worth knowing that when buying additional properties, you’ll have to pay stamp duty with a 3% increase in all homes which are valued over £40,000.
Carrying out market research on the demographics of the area of a potential home will allow you to look at the property requirements of your target market. This might include university access, rental values, and property type.
Once you have defined your demographic, you’ll be able to establish which areas need renovation or minor work. For example, if your demographic is a young family, then you’ll most likely want to have a three-piece family bathroom suite with a bathtub to suit young children. The demographic will also have a huge factor on your rental income as it will depend on employment status and income.
An important part of adding value to your rental portfolio is making smart decisions to increase your profit by investing in the property. With the kitchen becoming one of the main parts of any home, it is always one of the best rooms to invest in. Though a brand new kitchen can be particularly expensive, it can add more appeal to renters, which opens your property up to more viewings. As there are many restrictions on what can be done with a rental property, it can be extremely important that the kitchen is aesthetically appealing to your tenants.
After all, if your tenants are happy in their rental property, the more likely they are to stay for a long-term period of time. If you take care of your property and ensure that your tenants are happy, they’ll have more confidence in having you as their landlord.
It’s also important to consider that you need to make a profit from the work carried out on the property, otherwise you’re at risk of making a loss. However, if a home renovation or improvement project is budgeted in the correct way, it can easily pay off, particularly as it gives you the option to increase the rental value of your property. Think of improving your rental property as an investment and not an expense.
The best way of adding value to your rental portfolio is having the ability to handle your finances well. When it comes to investing in or renovating your properties, it can be difficult to keep track of your finances, particularly if you’re a multi homeowner. If this might sound like you, you’ll most likely benefit from a mobile or desktop app to keep track of your finances.
Landlord Property Buddy aims to make your life simpler with a clean and intuitive dashboard showing your rent, income, expenses, and investments over the year. Available on iPhone and iPad, Landlord Property Buddy offers a free trial and then costs £8.99 monthly.
Seeking help from a lettings agency will mean that you have more free time to focus on new opportunities to add to your rental portfolio.
A lettings agency can even complete thorough tenant checks and handle administration and paperwork on your behalf as well as keeping on top of legal issues and new legislation, so you won’t have to.
A picture can tell a thousand words and setting a good first impression is all down to the pictures on your rental property listing. A lettings agency will take care of the legwork with listing and that the home is properly presented and that the listing uses professional photography.
Are you curious about putting up your property on the market for potential renters? Let Open House Leicester help you. Not only do we offer quality property valuation in Leicester, but we can also get your property on some of the best property listings in the UK to ensure the successful advertisement of our property.
If you choose to advertise your rental property with Open House, we can ensure a quicker transaction than average. With our large network, we can help you advertise your rental property to thousands of potential tenants.
Simply get in touch with us here at Open House to see how we can help you with your Leicester lettings. With years of experience in the letting industry and knowledge on the Leicester market, we can help you successfully advertise your property.
Just get in touch with us today to discuss your needs. Our friendly and expert tea of property experts have years of experience when it comes to letting and renting properties so they will be able to answer any questions you have and make sure you are getting the best quality services.