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

Breaking News

New analysis shows majority of estate agents complete HMRC AML registration

Just 5% of branches still need to register More than 24,000 UK estate agency branches have registered with HMRC for money laundering supervision – an increase of around 2,300 branches in just over a year, according to new analysis from client due diligence platform Thirdfort. Some 24,003 estate agent branches across the UK have registered…
Read More
Breaking News

Gen Z could wait until 2044 to buy a home

Getting on the property ladder has never been tougher, and, for Gen Z, it could take up to 18 years to save a deposit in the UK’s least affordable cities, according to new research from Beswicks Legal, comparing 40 urban centres. The figures reveal that in places like Cambridge and London, Gen Z buyers may…
Read More
Breaking News

Pressure on landlords takes shine off BTL rate cuts

Buy-to-let fixed rates dipped to their lowest points since September 2022, and choice rose to a record high, according to Moneyfactscompare.co.uk. However, landlords are facing financial challenges, and rumours of more tax reforms in the Budget could hit investors hard. •    Average buy-to-let fixed rates over two- or five-year have dipped to their lowest…
Read More
Letting Agent Talk

Three steps to pet-proof your property ahead of new pet laws

Landlords across the UK are set for one of the biggest shifts in rental regulation in years as the Renters’ Rights Bill edges closer to becoming law. While the bill aims to give tenants a greater right to keep a pet, a new analysis highlights the stark reality of demand versus supply: with a dog…
Read More
Estate Agent Talk

Budget-Friendly Ways to Boost Property Appeal

Upgrading a property’s appearance doesn’t always require a hefty budget. One of the most impactful yet affordable changes involves refreshing tired flooring, an element that potential buyers and tenants notice immediately upon entering a property. Carpet remnants have become a smart solution for cost-conscious property owners looking to make meaningful improvements, as they offer the…
Read More
Breaking News

Naked tenants, basement brothels and maggot rain

When a company specialises in 24/7 property management support, it’s got to be ready to handle pretty much anything, as can be attested to by Adiuvo, whose managers have, on more than one occasion, received tenant requests that have caused them to pause and say, wait, what? Adiuvo has now pulled back the curtain on…
Read More