Upgrading a property is one of the best ways to boost the value of your rental property. Here are a few great ways to achieve a better gross to net rent ratio…
As Jason Harris-Cohen of Open Property Group says in an interview with Property Tribes, achieving the best rental yields should mean creating a space in which potential tenants will be happy living.
This of course starts with creating the best impression during the viewings. Yet to achieve a low tenant turnover (and therefore higher rental yields), you should take steps to ensure they remain happy after they move in. Do this with high-quality fixtures and fittings that are likely to last a long time, never cut corners and always speculate to accumulate.
As experts in the property market, the guys at Open Property Group are always looking for ways to increase the gross development value (GDV) of each property they invest in. This may involve adding an extension, or knocking down a wall to create more light and space.
After all, space equals money, but this doesn’t just add immediate rental value, in fact, light and airy spaces are proven to have health benefits. This is another way to ensure that tenants stay happy in their new homes and this in turn reduces tenant turnover and void periods.
Kitchens and bathrooms are usually the spaces that tenants notice most. After all, no-one wants to wash themselves in a dirty bathroom, nor does anyone relish the idea of spending time or cooking in a dirty, tired kitchen.
Mr Harris-Cohen recommends installing an ‘A’-rated boiler with a warranty of at least 10 years. He also advises adding kitchen appliances with a minimum warranty of two years, but ideally five years. Adding LED lighting creates a tranquil atmosphere, and with a lifespan of up to 50,000 hours LED lights are also much more energy efficient. This reduces the cost of replacing the lights, and lowers the risk of complaints from tenants.
You should also make sure that the washers on all of the taps, shower trays and basins are properly fitted - this helps avoid leaks and the build-up of mould.
Reduce condensation and damp issues with better ventilation, the team at Open Property Group tend to install positive ventilation units such as the ‘Nuaire Drimaster’. This may cost around £550, but the long-term benefits make it worth every penny, something that is especially true in older homes which are more prone to damp.
Find a team of tradespeople you can trust. Having trades on hand to fix any wear and tear as it arises helps to keep the property in ‘as new’ condition. The most common faults relate to electrics, plumbing, and damp/condensation.
Floors tend to suffer the most wear and tear in any property, because they are subject to constant use. To lower long-term costs, you may wish to consider investing in some thick, durable carpets.
If the carpets can withstand heavy treading and the abrasive chemicals in cleaning shampoos they will cost you less in the long term. Cleaning the property thoroughly could make your property look brand-new and more attractive to potential tenants.
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