Making money from renting a property is generally never something that just happens, as not only do you need a property or properties to rent, you also then need to make sure it’s in the right area, has the right facilities and is in a decent condition to attract the right tenants.
The days of just buying a property, spending a few pounds on some cheap paint and then placing an advert in the local press and getting your dream tenant are well gone, with the legal requirements of renting a property now far more intense than they ever were previously. From all the safety certificates you need through to making sure the property is in a sound state of condition, as a landlord, you are expected to deliver a property that is safe, suitable and well kept, which means spending money to make sure you achieve this.
And therefore, landlords are often trying to increase rental incomes, as the costs of letting a property are higher than they were, but demand is also greater, so there is often room to look at increasing the property rental value if you really want to, or need to.
One of the first things to consider is will your property achieve any more, no matter what you do to it? One of the first things to do is discuss this with your letting agent, or if you rent privately, pay for their advice if necessary, as your local letting agent has a wealth of knowledge and experience and will give you an honest answer regarding your questions. For example, if you own a 3-bedroom property with all the facilities and in a top-notch condition and you are already renting at a high price, the chances of you achieving more start to fall, as not only are you already achieving a rental value at the top level for the area, but there is little more you can do to achieve more through improvements.
You cannot pick the property up and move it to another location, so it is important to understand whether there really is a chance to improve the property enough to increase the rental income, as if there is not, you are just going to waste money and see no real extra return for it.
However, if your property is a little run down, a bit dated and could do with some TLC, then spending money on the property and bringing it up to scratch will help with rental values, as you are going to attract a greater interest and can raise your rental price if the property is in amazing condition, needs no work and the tenant can move straight in. Very few tenants would pay top value and then still need to get it cleaned, painted and decorated just to make it feel like home, whereas if you spend a bit of time and money making it liveable from day one, this can help to achieve a better rental figure for the property.
Another aspect to consider is to look at extending the property, as the more bedrooms you have, the higher the rental figure for your area in most cases. For example, the difference between a 2-bedroom house and a 3 bedroom house could be £100 or £200 extra a month, so whilst this would require quite a large initial investment, the long term ROI would be beneficial, especially if you planned to sell the property in the future.
So, whilst not always possible, there might be ways that you can look at achieving a higher rental figure, but as we say, speak to a local lettings agent first, as they will be able to give you honest answers to all your questions.