Until recently, the buy-to-let market in the UK was one of the most lucrative and generative sectors around. However, the demand has dipped consistently during the last couple of years, following the introduction of more stringent tax legislation and a sustained decline in property values.
However, there are signs that this trend has begun to reverse in 2019, with the number of borrowers who purchases a rental property with a buy-to-let mortgage having increased by a staggering 23% between February and August.
With this in mind, it’s clear that property owners are still able to achieve success in the buy-to-let market (so long as they secure comprehensive insurance from a reputable provider such as Homelet). But how can landlords pursue short-term profits and boost their overall return in the current market?
Rent Out Your Additional Parking Space
Depending on the nature of your property, you may have free or additional parking space that the tenants don’t use.
If your property is located in a high-traffic and central location, affordable parking spaces are likely to be worth their weight in gold, so you should consider renting these out on an ad-hoc basis to interested parties.
This can deliver an instant and incremental return, helping you to boost the profitability of your property and make the investment more lucrative.
Of course, you’ll need to get your tenants on-board with this idea, so consider incentivising them so that they’re comfortable with the arrangement. Also, try to limit the amount of time that you rent out the parking space and target key periods where possible.
Offer Property Related Services
Properties always need to be maintained, from basic plumbing repairs and cleaning to lawn-mowing and landscaping.
With this in mind, you can boost your short-term profits as a landlord simply by offering such services at a discounted rate to tenants.
To achieve this, you simply need to partner with a trusted, local contractor, who’s happy to provide the work on your behalf and pay you a commission for the flow of work that you’ve put their way.
These services are ideal when aimed at busy family homes, so don’t be afraid to promote this as a priority.
Get Your Pricing Right and Charge More for Furnished Units
Not all buy-to-let properties have been created equal, as whilst some are empty when they’re leased out others are fully furnished.
The latter type of property represents more hassle for landlords, who must ensure that the interior is fully furnished and capable of providing an instantly livable home for tenants. This requires an upfront financial investment too, which is why so many landlords eschew this option and instead deliver unfurnished properties to the marketplace.
However, the initial investment and effort required to create (and subsequently maintain) a furnished property can create an opportunity for landlords to increase their short-term profits. More specifically, these units can be rented out at a higher rate, as you look to charge more for the convenience and more than cover the cost of the fixtures and fittings.
Most tenants will be happy to pay a little more for a furnished property, so don’t shy away from offering this as part of your portfolio.