How to Increase Income from Your Rental Property

It will not be news to many with investments in the property market that profit margins are slimming – and in danger of slimming much further, too. A unique catalogue of errors has complicated the rental markets financial climate and frustrated the property market significantly too. As someone with a rental property or portfolio of properties, you might have concerns for the profitability of your own rental efforts; what can you do to increase rental income from your properties?

Financial Concerns

The combined impacts of the coronavirus pandemic and inflation crisis have had deleterious impacts for household budgets, reducing available income for millions and precipitating several near-recessions. Meanwhile, for example, record property value growth in the UK was followed by Bank of England reactions to that same inflation crisis, resulting in highly-valued properties and incredible hikes to mortgage rates. Not only were new buyers priced out of the market, but existing mortgage-holders saw their property expenses expand unsustainably.

For a key majority of landlords in the UK, mortgage interest is the only contribution made towards homeownership; buy-to-let mortgages allow landlords to acquire property without being liable for the upfront value until the end of the mortgage. In principle, this was to incentivise home-buying and lower the threshold for new landlords. In practice, rising rates of interest have made it harder for some to turn a profit. Some who had not structured their landlord business correctly were even forced to sell.

With rentals bringing in less money, it behoves you as a landlord to chart a course to profitability – without unnecessarily bringing hardship to your renters. What follow are some simple and effective ways you can achieve just that.

Extension

Extending your home through adding bedrooms enables you to charge an additional per-person rent, which is useful in university cities where student lets are lucrative. Extending your property is also a viable way to add value to it, which can be powerful for your long-term portfolio position.

Renovation

Renovation is a much more accessible route to improving your prospects, being less expensive than extending outwards. The right renovations can help you command a higher monthly rent without doing so unreasonably, and also improve your chances against other landlords in your area. Bathrooms are a common point of contention for new renters; looking around a bathroom showroom for bathroom inspiration can give you some ideas for how to entice renters in at a more premium price point.

Optional Extras

If you have some form of structure or team behind your rental business, there may be some extras you can offer to plump up your rental income, and generate a small amount of additional profit. Bills-inclusive rentals have become more popular amongst students and young adults in recent years, where utilities and internet are handled and paid by the landlord in exchange for a higher monthly rent.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More
Home and Living

Expert reveals the exact date parents must start renovating in time for summer

Loft and attic renovations are gaining popularity this spring, with nearly 11,000 monthly Google searches, highlighting them as one of the top home renovation projects Brits are planning in the coming weeks. Loft conversion specialist Sally McClean, loft conversion specialist from Enfields loft conversions Rooftop Rooms, shares the exact dates homeowners should start their renovations…
Read More
Breaking News

Nationwide HPI – Annual house price growth steady in March

Annual rate of house price growth remained stable in March at 3.9%, unchanged from February Northern Ireland remained the top performing area, with annual price growth accelerating to 13.5% London weakest performing region, with 1.9% year-on-year rise Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house price growth remained stable in March…
Read More