The smallest changes to a property can reap big financial rewards.
By knowing how to enhance your buy-to-let, you can boost its rental value and market value, thereby enhancing the profitability of your entire property portfolio.
Central London property is experiencing a slowdown at present. It is therefore a good time for buy-to-let landlords to boost the value of what they already own. But how? The first thing is to know your target tenant, and to make changes to your property with that tenant in mind.
Through our experience, here are some of the best ways to boost your buy-to-let property’s rental and market value:
1) Modernise the kitchen/bathroom
The kitchen and bathroom are generally considered to be the most important rooms in a house. They both need to function well for the tenant’s needs, as well as appeal to the eye. An out of date, time-worn kitchen is usually a ‘no-no’ for a prospective tenant, and they will likely look elsewhere. By upgrading one or both of these rooms, should they need it, you can encourage a tenant to remain in the property for longer, which in turn keeps void periods to a minimum. A good quality power shower is a must these days, and is the one thing we always suggest to our landlords.
2) Repaint and rejuvenate
If the paintwork is peeling off the kitchen walls, repaint the room. If there’s a damp issue in the living room, make sure the issue is fully rectified (not just patched over) and redecorate the areas affected. Never underestimate the transformative power a fresh lick of paint can have on a property as a whole. Always stick to a neutral palette in a rental property.
3) Is there freedom to extend?
A single-storey extension or loft conversion, provided such a thing is feasible with your property, can increase the property’s overall value as well as your monthly rental yields. It may even be possible to restructure the property so that you can incorporate an additional bedroom to make room for another tenant. A second bathroom or extra shower room with an additional toilet will always add enormous appeal to a property, too.
4) Landscape the outside space
According to a recent report, there has been a 37% increase in the number of people spending more time outdoors when they are at home compared with five years ago, and this applies to both homeowners and tenants. With this in mind, if the property you let out has outdoor space – such as a balcony, terrace or patio garden – make sure it is in good condition and is well-presented, and possibly include some garden furniture. Many tenants are renting for longer these days, and the ability to entertain friends and family outdoors – weather permitting – is important. By enhancing the appeal of the outdoor space, you can boost the monthly rental yield and encourage a tenant to remain in the property for longer.
5) Get an accurate rental valuation
As well as an accurate valuation, a local letting agent will be able to advise on what you can do to give your property a boost, while providing insight into what your target tenant might be looking for in that particular area.
Adding value to your buy-to-let property is all about striking a balance between what you spend on the enhancements, and what financial rewards are brought to you through making those enhancements. It’s often a false economy to carry out ‘quick fixes’ on the cheap, or patch over problems like condensation or damp. An easy-to-heat, secure, well-maintained property will always be easier to let out.
Are you looking to let out your property in Westminster, Pimlico or across the central London area? Get a free rental property valuation today.