10 Top Tips To Help You To Maximise Your Rental Return

  1. Check your current mortgage product to ensure that you have the best mortgage product / rate.
  2. Is your mortgage interest only? If not, why not?
  3. Landlord insurance – Shop around annually for a better quote.
  4. Pay close attention to how often you increase the rent and don’t be afraid to inform tenants of an increase. Put a clause in the AST contract stipulating that the rent will go up by £x or x% at the end of 12 months and will be increased annually.
  5. Take good care of your tenants and your tradesmen. Don’t cut corners with your tenants. If you want minimise the risk of void periods, then take good care of your tenants. Ensure that repairs are carried out quickly and efficiently, and pay self employed tradesmen promptly; maybe you can even negotiate a discount if you pay within 7 days. Find out if a self employed trades men is VAT registered. If they aren’t, then why pay VAT? You can’t claim it back! Pull this one off and you save 20% on every job!
  6. Take good care of your property. Stay on top of small repairs to avoid them becoming major problems in the future and carry out an inspection of your property at least twice a year.
  7. Minimise your tax. It pays to get a good property tax accountant. You’ll be amazed at what you can save and what expenses you can claim for.
  8. Find out if you have the option to convert your property to a HMO [House Of Multiple Occupancy]. Check the legalities of your property before you begin any work first though.
  9. Improve/extend the property. In some cases you may be able to add another bedroom/ bathroom which will enable you to achieve a higher rental amount. Research first and be certain that the cost doesn’t outweigh the benefits.
  10. Manage the property yourself. If you rent your buy to let property for £750/ mth the letting agent will usually take a minimum of 10% + VAT which amounts to £90/ mth – that’s over £1000 a year per property. Many letting agents take a sign up fee of £250-750 per new tenancy, this too is another saving if you were to do it yourself.