5 Ways to Increase the Value of your Rental Property
It’s important to get the most value from a rental property. First-time renters and established landlords alike will want the most out of their investment. Major investment helps here but there are plenty of simple and creative ways to increase yield with little to no financial outlay. This can pay dividends down the line and help you get the most out of your investment. We’ve spoken to Mark Doyle of MD Properties, a UK-based letting agency to learn how their clients increase rental prices. Here are five ways to do just that.
- Basic Decoration
It’s important to make people want to live in your property. No tenant wants to talk into their new rental accommodation and have to spend weeks redecorating the place. Go for bright, fresh, neutral colours on the walls and good-quality permanent fixtures and fittings. Make it liveable from day one.
“The simplest and cheapest way to increase the value of your rental property is to get the decoration up to scratch,” Mark Doyle explains. “This is about more than just giving the walls a fresh lick of paint. Make sure the floors are professionally cleaned and there is plenty of natural light. That makes a huge difference to tenants.”
- Add an En-Suite
Nobody wants to share a bathroom and adding an en-suite to one or more of your rented bedrooms can cut that out. This may not cost as much as you’d expect. Construction of an en-suite can cost around £4000 in total but the benefits far outweigh that. You’ll soon recoup the costs from increased rent and you’ll earn another payday should you decide to sell the property further down the line. A survey conducted by Nationwide Building Society found that an en-suite can increase the value of a property by around 5%.
- Look Outside
Don’t just limit yourself to the indoors. If your property has an outdoor space then this could be a great way to increase income. Outdoor spaces can be transformed with little to no financial outlay. Just a bit of hard work can transform an overgrown garden into a liveable space. Give any fences a lick of paint or invest in some cheap second-hand outdoor furniture to revolutionise the garden.
- Match the Property with the Target Market
Not every rental property should meet the minimum accepted living standards. Depending on the area, it may be worth pushing the boat out and creating a more upmarket abode. The kitchen and bathroom especially are crucial to this. Investing in better appliances or higher quality fixtures can be a great way to increase rental yield when targeting a higher income demographic.
- Added Perks
But there are plenty of other extra features and perks that can attract a much wider selection of tenants. Major appliances like dishwashers can add to rental costs, as can complimentary Wi-Fi with the property. In terms of technology, see whether the property is located in an area that offers super-speed Fibre broadband or 5G mobile coverage. There are plenty of spots around the UK that now offer 5G and taking advantage of this can enhance your potential earnings.
*This is a collaborative post.
