You don't always need to raise the rent to increase your income. In fact, maintaining a rent that's just below the market average can be a great way to retain your most valued tenants.
Have a look at a few of our ideas to help you maximise your rental income – without alienating your residents.
Let your property quickly
Minimising periods of unoccupancy is one of the most fundamental steps towards getting the most out of your property: even a delay of a couple of weeks could mean missing out on hundreds of pounds of income. Present your property at its absolute best and market it vigorously, using both online and offline platforms. But don't rush into anything too quickly – make sure you've still performed the necessary background and credit checks on your tenants before making an agreement.
Reduce costs to improve profits
Selecting and retaining ideal tenants often leads to a reduction in repair and maintenance costs. And reduced costs with consistent revenue means higher profits. In particular, look out for tenants without children or pets, who have exemplary references from their previous landlords.
And if you're confident in your abilities and knowledge, you can even perform repairs to the property yourself – helping to avoid costly contractors who could further eat into your profit margins.
Consider letting each room on a separate lease
Not only could it be quicker and easier to fill a single room should one of your tenants suddenly leave, the combined rent from a number of separately leased rooms is often higher than the rent of an entire property on one lease.
Upgrade and redecorate
Some landlords are wary of investing in improvements to their property, as the return on investment isn't always clear. But remember that as well as an increase in the rent you can expect to charge, the value of your property will also increase – meaning your income and the value of your assets will rise together.
Bathrooms and kitchens should be the first targets for renovation. They make the biggest impression on prospective tenants, and their improvement can help to retain your best tenants if you upgrade before they decide to leave.
Be prepared for the end of your agreement
Allow time before the end of the tenancy (typically 2 months before) to get in touch with your tenants and find out if they've decided to stay or vacate. If it looks like they're leaving, then get marketing immediately – time when the property is unoccupied is revenue lost.
You should also be prepared for any ends to the tenancy that can't be predicted. If a flood or a fire makes your property uninhabitable, it may be some time before you can fill your property again – so it's worth having landlord insurance that covers loss of rent.