MAXIMISING YOUR RENT
Maximising your rent is not just about front loading e.g. what rent you can achieve from the start of the tenancy. It is also about making sure that you have reliable tenants who want to stay long term. Void periods, rent arrears and damages caused by tenants will eat away at your rental profits a lot more than holding out for the highest rent.
So with this in mind – 5 Tips For Maximising Your Rent- Explained
1. Show Case Your Property
Make sure your property is advertised in the best possible way it can be. Obvious ones are to open the curtains and make the rooms look lighter. If you are taking pictures of the bathroom areas – make sure the toilet seat is down! Stage your rooms- make them appealing to live in.
- Local Housing Benefit Tenants (LHA Tenants)
Every now and again I have Landlords who do not want to accept tenants who are receiving LHA. I can recall comments such as “I wouldn’t touch them with a barge pole because they are trouble with a capital T”. However, by excluding LHA tenants from your properties, you are losing out on a lot of potential tenants. People who receive benefits are not bad people and are no different to workers. Some of my best tenants are people in receipt of benefits and are simply stuck in the system and want to work.
LHA tenants often allow you to maximise your rent.
- Market rent for a 3 bedroom flat in Gateshead, Tyne and Wear= £450.00-£495.00 pcm
- 3 Bedroom LHA rate in Gateshead= £498.64 pcm
- If your tenant qualifies for a 3 bedroom LHA rate you will get the top end of the market for rent that can be achieved.
If you had three properties and you could miximise the market rent by £50 per month per property, this equals £1800 in extra rent per year for Zero extra work, just knowledge of LHA and tenants housing benefit entitlement.
3. Boutique Principle
You don’t get a second chance to make a first impression.
Bold feature walls.
- We get taught to keep things neutral – magnolia walls- sounds familiar? Why do you want your property to look like your competition when you are wanting to stand out and attract the best tenants?
- A bold feature wall in an otherwise neutral space will be very effective and a key selling point. The feature wall will provide a focal point and an instant appeal to potential tenants.
- Don’t be afraid to venture into the new, make sure your property stands out, and think differently.
4. Pet Owners
Pets cause a lot of damage to a property, so it is not surprising that a lot of landlords put a blanket ban on pets, but are you aware that nearly half of the UK population own a pet? Instead of saying “no” to pets, simply ask for a higher deposit to cover potential damage and keep a close eye on things until you are sure the tenant is a responsible pet owner. Why not do what we do and organise a HOME VISIT so you can see the tenants current property and confirm the condition it is in with a pet. See for your own eyes. We do this as a standard practice and how a tenant treats their current property is a clear indication of how they will treat their new property.
5. Prepare your property to live in not just for viewings.
If you want to make sure that your tenants stay for the long term you need to make sure that the starting point is correct. There is a big difference between making a property look good for viewings and making sure the property is ready to be lived in. For example do all the internal doors shut properly? Do you have the right fixing for the washing machine to fit with the drain kit? These common small problems which annoy tenants if you don’t get them sorted before they move in.
ANSWER– have a systematised approach to checking your properties off before a tenant moves in. We use an 804 point property condition report which checks ALL fixtures and fittings to prevent anything being missed.