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. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Home and Living

Best Budget Smartphones Under $200

In the rapidly advancing digital era, it’s no longer a luxury but a necessity to have a smartphone. Not everyone however needs or is able to pay hundreds of dollars for an expensive device. The good news is that there are numerous budget smartphones under $200 that provide great performance, decent cameras, and a long…
Read More
Rightmove logo
Breaking News

Ten years on: More first-time buyers moving to cities while the coast stands still

New ten-year analysis of the property market shows that more first-time buyers are looking to move to cities, while the coast has seen no growth in new buyers First-time buyer demand to move to Great Britain’s 50 largest cities (excluding London) is up by 16% on average over the last ten years, with Dundee topping…
Read More
Breaking News

Homeowners in England and Wales overvalue their properties by an average of 16%

Homeowners in England and Wales are overestimating the value of their property by an average of 16%, according to new figures. Data from Quick Move Now compares homeowner estimates with formal estate agent valuations and is broken down by both region and property type. Overall, homeowners overvalue in every single category.   Regional breakdown Region…
Read More
Visual blemishes on Roads due to service upgrades
Estate Agent Talk

Emergency Sidewalk Repairs: When to Act and Who to Call

Sidewalks are the unsung heroes of city infrastructure—quietly assisting tens of millions of footsteps every day. But when they crack, disintegrate, or shift all of sudden, they might quickly turn out to be volatile liabilities. In a town like New York, in which pedestrian site visitors are constant and belongings proprietors are legally chargeable for…
Read More
Breaking News

Reapit report reveals agents’ long-term market confidence amid legislative challenges

Despite the significant challenges posed by a shifting economic landscape and the largest wave of housing legislation in decades, estate and letting agents remain steadfast in their confidence about their long-term future in the industry. According to the first Reapit Property Outlook Report 2025, covering the full breadth of sales and lettings agency opinion countrywide,…
Read More
Breaking News

Owner-Occupiers Drive Resilient Commercial Property Market

Buying Becomes 37% Cheaper Than Renting The latest Commercial Property Demand Index from specialist property finance expert, Rangewell, reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly move from renting to buying their long-term premises for…
Read More