If you’re a landlord, you presumably already know this, but if you don’t, you should, since rental yield is crucial! It’s important for landlords to understand the concept of rental yield.
To put it another way, rental yield is a means to gauge the profitability of a property investment. Gross yield and net yield are equally significant, yet they measure different aspects of your business. To learn more, continue reading to see how you can increase your rental yield.
Review Rents Regularly
Here’s a simple way to help bring in more money from your rental yield. When the time is right, look at a property’s rental income and see if it can be raised to more closely match the going rate. Make sure you stick to your contracts, though, and think about whether you really want to raise the rent on a tenant who has been renting from you for many years and hasn’t caused you any trouble.
Review Your Outgoings
Let’s take a look at how much you spend on your property. Do you have your insurance automatically renewed, or is there a more affordable option out there? Is it expensive to hire a plumber, or can someone do the same job for less money?
Keep track of how much you spend and set reminders for when it’s time to look at other options. Treat being a landlord like a business, because it is.
Check Your Mortgage Renewal And Improve Your Rental Yield
You may have a buy-to-let mortgage on your home, but is it still the best one? There are a lot of new products on the market, so when the right time comes in your current mortgage, look around.
Be careful every time you switch. Keep an eye on the news for different products, and if it’s not the right time right away, write it down so you can come back to it when it is.
If you want to be a landlord, you should do your research. Think about where you want to spend your money and what kind of property you want to buy. Do you want a newer place that needs less work or an older place where more things could go wrong?
Don’t change your plan if it’s working. If you have a good rental yield because your home is new, keep that in mind when looking for another buy-to-let property.
Be A Good Landlord For Greater Rental Yield
If you have a great property and great tenants, you’re more likely to get a better rental yielf return (and yes, both can be achievable). But can you improve as a landlord?
Do you use high-quality components?
Do you deal with problems quickly?
Do you fix things right away?
If you’re a good landlord, you’re more likely to get good tenants and can charge them more rent.
You evaluate a house and a tenant, so why not evaluate yourself and see how you could be a better landlord? It’s good for business.
If you have the right tenant in your property, your rental yields are more likely to go up. If they take care of the house, your costs may go down. Obviously, if you want to get the most out of your property portfolio, you should think about hiring a lettings agent. You can get the most out of being a landlord if you hire a full-service property management company.