Use rising rental incomes to improve properties
Posted by Gary Winters
Making improvements to properties now could help landlords attract tenants in leaner times
Landlords should use income from rising rents to reinvest in their buy-to-let properties, it has been claimed.
A surge in demand for let property has meant that many landlords are enjoying higher rental incomes than ever before.
According to Robin King, director at property services firm Move with Us, this money should be used by landlords to make improvements to their current stock, as this will make sure they are able to attract tenants at good rates in the future.
"Being a landlord in 2012 is a privileged position; demand is high and interest rates are at their lowest levels for many years," he told the Financial Times.
"With any additional secured in this 'haven' period, landlords should be looking at effective ways to reinvest in their current properties, to manage their assets and increase their returns."
Even simple changes, such as making sure properties are thoroughly cleaned between tenancies, can make an important difference.
"The easiest single thing that any landlord can do to ensure their properties are re-let quickly is to have them professionally cleaned," said Mr King.
"It is also worthwhile having the carpets and curtains cleaned, in order to get the maximum rent for the property."
Meanwhile, with government legislation making it an offence to let or market a property that falls below an energy performance certificate rating of Band E from 2018, improving energy efficiency could also be a worthwhile investment.
"Money spent on insulation and investing in energy efficient heating systems will not only tick the green and money-saving boxes, but ultimately it will make the property more desirable for future tenants looking to keep their ever-increasing heating bills down," said Mr King.
His advice follows a recent survey by buy-to-let mortgage lender Paragon, which found that 56 per cent of landlords expect tenant demand to grow in 2012, compared to six per cent who think it will decline.
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