Would you like to maximise the potential of your rental property investment? This blog looks at the five top reasons you should consider when making upgrades to your rental property, including: quality tenants, increased rental income, maximising property value, reducing void periods and monthly expenses, as well as increasing sustainability.
1. Attract high quality, long term tenants
Investors tend to focus on the “volume” of properties they want to buy but, always keen to challenge convention, we don’t necessarily agree. As with any property purchase, yes, it’s a numbers game but, consideration surely has to also be focused on the ultimate end-user, your tenant. You need to ask yourself, what would tenants want, what do they look for in a rental property, what is their budget?
We have spent more years than we care to mention viewing properties with potential tenants and the results very often surprise us.
The theory is proven time and time again, if you provide an excellent standard of accommodation, the likelihood is, tenants will stay long term (unless they have a change in personal circumstances). Tenants are unlikely to move because of issues within the property as there is never a large volume of high-standard accommodation for them to move to. We believe it is all about creating the ideal scenario: if you are investing in a rental property you want to be “first choice” to rent and having your pick of great quality, long-term tenants.
2. Maximise your rental income
At Gilson Gray we have seen first-hand recent renovations where our clients have achieved significant uplift in the monthly rent (up to 50%), taking their yields to over a 10% return (Example – 6B Eden Street, Dundee).
3. Maximise your property value
Maximising the capital value of your property and your monthly rental income from day one is the best way to secure your investment for the long term. We have all seen first-hand how the world can dramatically change overnight, so if you ever need to sell, you can, immediately, and for the highest price possible.
4. Minimise void periods & reduce monthly maintenance costs
In our experience, presenting a “brand new” property to the market after renovation not only ensures your marketing photos always show your property in its best light (regardless of how the tenant lives in it), but it ensures that your property is advertised immediately and re-let without delay and loss of income (and dreaded turnaround maintenance costs, council tax and utility bills).
When the existing tenant submits notice to leave, you will have a stream of new potential tenants eagerly waiting to see your property. All your fixtures and fittings are brand new so no leaky tap phone calls or any other pesky minor works or upgrades that your tenants demand.
There is a market for mainstream standards but it will cost you money in the long term (and eat into your profit on maintenance deductions from your monthly rental income). A property renovation minimises repairs as everything in the property is brand new. Landlords can budget more accurately to simply factor in costs for compliance certificates and a minimal allowance for unforeseen circumstances or communal repairs.
5. Improve energy efficiency & environmental impact
Believe it or not, there are more and more eco-conscious renters out there striving to reduce the cost of their utilities. In addition, changes in government regulations for landlords mean this is now a fundamental issue that cannot be overlooked. We have recently sourced many great investment properties for clients whereby the EPC was an “E” and using our renovation services, the rating has increased to a “C”.
In a nutshell, there are five key reasons we think you should consider renovating your rental property: you will attract long-term tenants; your monthly rent will be boosted; property value will increase; your turnaround and maintenance costs will be lessened; your property will have a greener footprint.
Why choose Gilson Gray
We believe that property renovations are the best long-term solution for your rental property investment. With highly skilled and experienced staff, we’re best placed to take on rental property renovation projects. Our team is ready to hit the ground running and takes pride in seeing the end result. Our team also has some of the best local contacts in the business making sure to get desired results at the best price for you. Get in touch with us today to discuss how we could help you with your rental property renovation project.