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Your 9-Step Guide on How to Increase Rental Property Value

If you’re not using strategies to increase rental income, then you’re potentially leaving money on the table. Here’s how to add value to your rental property – for those with and without time and a budget.

Faye deGavre

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Apr 16, 2021

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5 min read

Your 9-Step Guide on How to Increase Rental Property Value

It’s every property investor’s dream – to secure a high rental yield property in a location that delivers large capital gains, along with low management and maintenance expenses. But when it comes to earning more money on a rental property, buy-to-let landlords often make the mistake of thinking that knocking down walls and making significant financial sacrifices are the only way to go. However, this is certainly not the case. 

With a few tips and tricks, it’s possible to raise the value of your rental property, resulting in a better rental experience for your tenants and a higher profit for your pocket.

How to work out rental yield

To add value, you need to know where you currently stand so that you can keep track of figures and know where to improve. First, work out your rental yield. Once you have a percentage, you can get to work on adding more value for your tenants – and your bottom line.

How to add value to your rental property

Buying property

1. Invest in up-and-coming locations

A great way to improve your rental yield is to buy property in an up-and-coming city or town where there is set to be regeneration and investment. Look for redevelopment of city centres, government business initiatives and promising infrastructure. Areas such as these provide the prospect of increased capital growth and great rental values for the future.

2. Consider your target tenant

If your property is close to a university or college, your obvious prospective tenants will be students. If there is already a lot of competition for student housing in your area, it might be wise to aim for postgraduates or lecturers, which could result in a higher rental yield.

3. Offer added extras

When purchasing a buy-to-let property, think about how else you can ramp it up. Increase your rental value by offering something over and above your competition, such as adding a private driveway for parking, installing fibre-optic broadband for home workers or security systems. These sweet extras may attract tenants who are willing to pay more. 

Home improvements to increase rental value

4. Keep on top of repairs

It’s a basic but highly overlooked responsibility of being a landlord. Your first step on how to add value to a flat or house is to keep it well maintained. Make sure all scuffs, marks, loose floorboards and other faults are fixed. Regular maintenance goes a long way in preventing costly repairs, and it helps you to spot disasters such as water damage that can eat into your profit.

5. Make use of green space

In life after lockdown, green space is a highly sought-after home feature. If you have it, flaunt it. Showcase how tenants can enjoy the garden by adding desirable accessories like outdoor furniture or a barbecue (and if you have the space, maybe even a shed). By making the most of this additional space, not only do you attract a larger pool of prospects, but you can charge slightly higher rent, too. 

6. Welcome in pets

Flexibility is a desirable trait in a landlord. Allowing pet owners and their furry friends is potentially a great way to charge more rent, making it easy to increase rental income. If you choose to welcome pets into the property, be sure to install higher fences, secure gates and opt for durable flooring.

7. Add storage space

Families, couples and individuals tend to be concerned with interior storage, and there’s never too much space to accommodate an extensive number of belongings and possessions. Maximising space can be as simple as creating built-in cupboards, under-bed storage and even coat racks. This is especially important if you’re targeting growing families. 

8. Consider an extension

Extending the property is a great way to add extra rooms and, consequently, additional rental value. It’s a long-term investment and can be a significant outlay, but it can offer an excellent ROI, especially if there is a shortage of a certain type of property in the local area. For example, if there are plenty of two-bedroom properties but few three-bed, adding an extra bedroom will open your property up to more tenants.

We advise crunching the numbers first to ensure it makes sense, as well as doing your research on planning permission and contractors, too. If you can’t stretch to an extension, consider utilising the space (for example, under the stairs) to create a cosy nook or a home office.

9. Update and upgrade

As times change, so do people’s needs, and that means staying on top of ways to improve property value. Knowing what your ideal tenant wants from a property can help make your rental more attractive.

Higher spec properties always tend to command a greater rental rate, which will ultimately have a positive impact on your yield. If your property is furnished, replace worn-out sofas and unstable wardrobes that can be off-putting to potential tenants. What’s more, a newly updated home is more likely to attract tenants who will want to keep the property in good condition – equating to fewer repairs when the tenancy ends. 

At Boomin, renovating, furnishing and decorating a buy-to-let property has never been easier. Need to revamp the kitchen or bathroom? Install more lighting? Add furniture for that wow factor? With endless home improvement ideas and professionals to help, Property Playground helps to transform your space into a rental you can be proud of.

Get your rental ready for the market

For buy-to-let landlords, owning property is about making money. And it makes sense to maximise the value of your property. More often than not, a little TLC and time in improving the rental will increase rental income and your ROI. Property Playground is a great place to start when looking for ideas, items and professionals to revamp the space. 

Ready to list your property to let? We work with quality Letting Agents that make letting easy. Get in front of your target tenants before your listing is even live on the market to drive up demand. Book a rental valuation today.

Faye deGavre

Content Writer