Mon 24 Feb 2020
Paul Bennett, Director
Achieving the best yield is what landlords should strive for, especially as the final phase of mortgage interest tax relief changes takes place in April 2020, taking a bite out of profits. An integral part of improving margins is commanding the highest rent possible but getting tenants to pay top dollar needs a smart strategy
Understanding who your tenants are and how to attract them is crucial – something we have mastered here at Behr & Butchoff. We’d like to share some of that knowledge with landlords and our six top tips will help get you started:
Run an open house block viewing: inviting multiple prospective tenants to visit a property at the same time generates a sense of competition and hopefully sparks a bidding war. Offers after an open house block viewing tend to be made quickly, and multiple offers can push the monthly rent achieved beyond the asking price.
Presentation: one of the easiest and most achievable ways of gaining a tenant willing to pay a good rent is to improve the presentation of a buy-to-let. A clean and tidy property, inside and out, will ensure tenants don’t have cause to chip away at how much they pay. Ensure everything is in working order, repairs are made and the property is neutrally decorated throughout.
Remarket your property to an under-serviced audience: by talking to an experienced letting agent in your area, you can find out which group of tenants are struggling to find properties and re-market your property to suit them. That might mean upgrading a student let to something more corporate, aimed at a professional couple or the relocation market.
Offer ‘added extras’ as bait: if your property is in a ‘premium tenant’ market, then upping your rental package might help you achieve a higher rent. For example, state-of-the-art appliances, security systems are features that interest high-end tenants. Extras, however, should not eat into your profit need to be balanced with your yield. Ask your letting agent if any planned extras will recoup costs in the form of higher rent.
Set a realistic rent from the word go: setting a realistic rent may be the most crucial piece of advice we can give, as pricing yourself out of the market will lead to void periods and the inevitability of reducing the advertised rent later on. Your local letting agent will know the ‘going market rate’ for rental properties, and will be able to ‘pitch’ your rent to drum up enquiries and offers.
Behr & Butchoff has over 30 years’ experience of letting properties in and around North West and Central London. If you would like tailored advice on how to achieve the maximum rental figure for your buy-to-let, contact us today.