Herwald Prestwich Village493 Bury New Road,
T: 0161 773 5000
Buy-to-let interest in the UK is still pretty high. If you have a portfolio in Greater Manchester – or anywhere, for that matter – tenants will be clamouring to see what’s available.
So how do you maximise a rental yield? It’s a puzzle that involves many aspects of your job as a landlord. Here’s our top tips:
Don’t always choose the most expensive appliances
Obviously tenants want good value. But don’t focus too much on the latest, hyper-powered washing machine, or an oven that cooks four meals at once. Mostly, people are just happy to be in a clean, functioning space that doesn’t come apart at the seams. Mid-range utilities are fine. You’ll save a whole lot of money, which could be spent on furnishings. Speaking of which…
Opt for reclaimed furnishing
Vintage pieces are seemingly never going to drop off the interior style radar. Tenants adore them, and you should too. They’re a boon to your budget. Reclaimed wood, iron and glass furniture will lend a grand, industrial look to a home at a lower price. With a few visual tricks, they’ll look brand new, and your tenants will appreciate that they have a truly one-of-a-kind home.
Consider launching a limited company
There are many benefits to going limited. For one, you can still make use of the mortgage interest relief that was restricted in 2017 – limited companies can classify it as expenditure. Elsewhere, you’ll only pay corporation tax on the income you receive: a strict 17% across the board by 2020. That’s far nicer than the 40% or 45% you might fork out as an individual landlord.
Plan a conversion for empty space
A hollow partition between walls? That former study that’s been plied with spare bedding and old, broken desks? Chances are that some areas of your property are ripe for conversion. A separate living space is really valuable. Attics can be fashioned into another bedroom. En suites, meanwhile, can add another £40-50 onto your rental price, which will cover the investment cost within a year or two.
Utilise a property manager and lettings agent
You’re on the hunt for greater yields. Exposure is the first step to netting them, meaning you should explore what a local property team – such as Herwald Sales & Lettings – can deliver with targeted marketing.
At the same time, management skills will save on repairs and improvement projects. We have a close circle of tradespeople whom we go to for the jobs that transform portfolios from drab to amazing. It’s all within your contracted service charge; there’s nothing extra to worry about.
Take these lessons forward, and we’re certain that property pains will be a thing of the past as you watch future returns make their landing. Contact Herwald Sales & Lettings for knowledgeable, friendly advice on maximising your gains in Greater Manchester. We’ll lift your portfolio to a golden standard…