Maximising rental income

Weston Super Mare, Highbridge and Burnham on Sea

Rental valuations are assessed on the location, layout, size and décor of the property.

Once you have bought the property it is a major refurbishment to change the layout and size, so concentrate on finding the right property to buy. So if you're not an accidental landlord and are looking to buy in Weston Super Mare or Bridgwater or Somerset I would suggest you look at the following steps.

Step 1

Location, Location, Location

Choose an up and coming area. In Weston Super Mare if you would like a new flat or house look at Haywood Village or Locking Camp. For older stock consider Worle, Uphill or Hutton. If you would like a property in the centre of Weston remember that many flats have been created from converted Victorian houses and the EPC ratings will be lower and more difficult to increase. Also usually the maintenance will be more.

Step 2

Long Term Gain

If you are looking to invest in a property whilst renting it, I would advise buying a 3 bed house. There is usually little turnaround in tenants, giving your less yearly expenditure with little or no void periods. So bills are minimal and avoid you paying gas, electricity, water and council tax whilst the property is empty. You should receive a regular rental income and apart from emergencies know that your yearly maintenance bill will be a gas safety certificate, insurance premiums and if your property is up together no more than general maintenance. If you have bought in a good location then in the long term you will also see capital growth.

Step 3

Reduce your costs

What are you rental costs ? Most Buy To Let investors largest bill is their mortgage. Shop around for the best mortgage company, decide on whether you would like a repayment or an interest only loan. Think carefully about the mortgage interest rate, do you want a fixed rate or a tracker? Landlord Building and Contents Insurance. Be organised and consider different companies, weeks before the renewal date. Do not stay with the same company without comparing the market. Maintenance can be high but if you get your property in a condition where the fix is permanent instead of just repairing you may save money in the long run. Remember property repairs are tax deductible.

Step 4

Renovation

When a property is in a tip top condition there is a correlation between tenants respecting the property and treating it with care and attention. This does not necessarily mean putting in a new kitchen or bathroom every 5 years, but making sure the one that is there is in excellent condition. A loose hinge on a kitchen cupboard may lead to needing a new carcass. Encourage your tenants to report minor issues. A leaking tap can lead to a flooded bathroom. Furthermore cleanliness is very important, especially with carpets and vinyl as these are awkward and expensive items to replace. An immaculate presented property will rent quicker and therefore give you a better annual yield than one that is rundown and showing mould or maintenance issues.

Step 5

Consider House Share

One way of increasing your profit as a landlord is to rent rooms to individuals in a house or flat rather than one tenancy agreement. Professional House Shares are becoming more popular due to working individuals not being able to afford their own space or due to them working away from home. This is a more complex arrangement and you need to be sure you do not fall foul of Council regulations such as Licensing for HMO's (Houses in Multiple Occupation) insurance or your mortgage agreement.