Successful property management comes down to a few key factors, like finding the right tenants, looking after them, and keeping maintenance costs on your investment property to a minimum.
Perhaps the two most important factors in getting the best value from any buy to let property are maximising rental returns, and keeping tenancy void periods down to a minimum.
In this post, we take a look at two ways landlords can maximise returns – through effective use of annual rent increases, and strategically timing their tenancy renewals.
Annual Rent Increases
An eye on the market
When was the last time you looked at your rent?
As a landlord, you are entitled to increase rent annually – but few do. The fact is that most landlords don’t examine the rent until the end of a tenancy, and even then, many overlook it and relist properties at the same asking price.
Rental market values move on over time, and the longer it has been since you examined the rent levels, the more likely it is you are missing out on potential returns.
At the same time, the costs associated with managing and maintaining rental property is always rising – and these costs cut directly into your profit margin as a landlord.
Best practice to maximise returns
It’s best practice to assess rental levels once each year, to ensure that you are still getting full market value from your property.
You can request that your property management company does this on your behalf, if they don’t already offer this as part of the service.
If, after analysing the market, you find that the property is undervalued, then you should increase rent following the proper legal procedure, to ensure that you are not missing out on potential returns.
Increasing rent – the process
The next step is to inform your tenants of your intention to increase the rent. This needs to be done in the proper, legal manner, via a rent increase notice letter.
At CJ Property, we can manage this process on your behalf, explaining the process with the tenant, drafting up the letter, and serving notice in line with your legal obligations.
Timing Tenancy Renewals
Empty properties cost money. One of the key strategic objectives of any successful property management programme is to minimise void periods.
The rental market is seasonal – with busy and quiet times throughout the year, and this is something that savvy landlords can make use of when it comes to tenancy renewals. Timing is everything, and having a proactive strategy in place when it comes to tenancy agreements is really beneficial.
Starting negotiations with tenants to ensure that agreements don’t end during quiet times, like over Christmas, can make a real, measurable difference to the returns a property will generate, especially over the long term.
Maximising returns with CJ Property
We look after our landlord clients – for nearly a quarter of a century, we’ve been helping landlords and property investors from across the region and beyond to make the most out of their buy to let portfolios.
As part of our service, we can provide tailored advice and support with rent increases and tenancy renewals – ensuring that they are implemented effectively, in the right way to maximise value for clients.
From accidental landlords and fledgling investors, to established property professionals – we look after all our clients in the same way. We are here to help at every step of the way, from finding the right, desirable properties in the right areas, to looking after your portfolio and managing it on your behalf.
Find out more about our service with a free no obligation consultation with CJ Property – the Hull buy to let investment specialists. Call 01482 645270 today for further information.