Most property investors in the UK are happy that there is some certainty over Brexit now and plan to make buy to let investments in 2020. We agree that you should do this and here we will provide you with 5 tips to help you maximise the return that you make on your rental properties.
1. Invest in the right Areas
Recently we have made a number of posts about areas in the UK that provide the best opportunities for rental yields and capital growth. We published a post about UK generation hotspots and another about the buy to let opportunities in Nuneaton in the last few weeks.
The real message here is that you need to be prepared to look further afield for your buy to let investments if your local area does not offer good average yields. You need to “get on your bike” and check out areas like Nuneaton and cities in the NorthWest like Manchester and Liverpool.
There are other locations in the Midlands, South Wales and Scotland that you can check out too. OK if you know your area well and you have good connections there then this is going to feel safer for you. But if you really want the best returns then create these connections in another area. Step out of your comfort zone for the best results.
2. Do your Homework
You can do a lot of research online about a specific area of the country but there is no substitute for going there and checking out the location for yourself. Yes it is going to cost you money to travel but this is a small price to pay as making the wrong move could cost you a great deal more.
Find out for yourself what the best areas are in a town or city. Visit letting agents and look in local newspapers to verify rental prices. Check out any development plans for the area and big businesses moving in that will bring additional employment.
Some people may tell you that you can do all of this remotely. There are some property investors that have “buddies” in other towns or cities but can you really trust these people? We strongly recommend that you go check out an area for yourself.
3. Make your Property nice to live in
Do everything that you can to make a property as attractive as possible for tenants. Spend money on renovations and preventative maintenance. Ask yourself this question “would I be happy to live here?” If the answer is no then make it better.
4. Make the Rent Realistic
This goes back to what we said about doing your homework. Of course you want to get the highest rent that you can and making your property really attractive will help significantly. What you don’t want to do is set the rent too high because your property could be vacant for a long time.
Make it your business to find out what people will pay to rent a property like yours in top condition. Don’t just listen to letting agents. Every day that your property is not let is costing you money.
5. Make it easy for Tenants to pay you Rent
Don’t ask a tenant to pay by cheque or cash. This can lead to delays which will frustrate you and the tenant. Set up a direct debit or some other form of online payment which is set and forget. Make it easy for your tenants to pay.