9 ways to increase the rental value of your property

There are many ways to improve the rental value of your property investment, however the best answer is also the most painful “choose the right property in the right location” This may not help you if you already have a property you are looking to rent out, but it is important, if not the primary consideration to look at.

1. Buy the best units in if in a development

If you are looking at buying an apartment in a large development, then compare all available units and choose carefully. It is not all about the numbers on paper. You will also want to look at what would get a higher occupancy rate. So higher floors, larger Apartments, corner units with more window aspects etc… will all contribute to the longevity and consistency of an apartment in any given block.

2. Buy a furniture Pack

Tenants will pay extra for the convenience of having furniture already in place. This could range from basic furnishings of just beds, sofas and wardrobes to full furnishing which will include everything from toasters, bedding cutlery and crockery. Essentially everything a tenant needs to survive other than their own food and clothing.

3. Place listing on multiple sites such as AIRBNB, booking.com, Zoopla, Rightmove etc…

You want to get your property in front of as many eyes as possible to ensure it gets the maximum amount of offers, which increases the chances of having a higher paying tenant. It may cost more to get it listed however just a small increase of weekly rent will pay for itself over the course of years. Don’t shy away from extra costs.

4. Hold open days to get several tenants in to start a bidding war

Once you have as many enquiries as possible it can be a fantastic tactic to have them all come to an open day event at the property. Not only is this more efficient for your time but will create a sense of popularity and urgency in renting out this property meaning you could receive several offers at once, then opening the possibility of a mini bidding war.

5. Buy the type of properties that are in short supply in the location

This is where the research of an area will come into play. A given location will have several different property markets from holiday lets, student accommodation, HMOs, or standard residential properties. Make sure you are buying the sort of property that is in desperate need within the area. If you already have a property in a given location, then you could research what is needed and look into the possibility of operating the property under a different strategy (this may mean checking with the local council for planning permission). Examples of this would be a seaside town in Blackpool would be popular for Holiday-lets but a large house in Liverpool will be popular as a student HMO.

6. Buying a place near gyms, restaurants, and other Amenities

Again, looking into the location research, you may wish to ensure tenants are close to all the local amenities to ensure convenient living. This will increase both the occupancy rate and the type of tenant you are going to attract (higher paying working professional).

7. Proximity to Hospitals, Town Centres, and other Commercial areas

Like be located close to all the local amenities, being close to plenty of commercial and other working districts will attract higher paying working tenants.

8. Consider level of competition when decorating

A property finished to a higher standard will typically see higher rental prices and better tenants. However, you may wish to be careful. If you are going to end up attracting students or bad tenants (normally due to the area) a higher level of damage on expensive finishings and furniture could cost, you more than you had planned. So, consider your possible tenants carefully.

Another example is if you operate a holiday-let, typically speaking people are looking for that extra bit of luxury, so scope out your competition and ensure your property is up with the standards.

9. Management Company

A good management company may be able to handle a lot of what we have discussed above from furnishings, bidding wars, advertising etc… so if you are hands off paying a little extra to a good management company may pay off.