First tip

Know the market your property attracts and who you want to attract.

Realistically this is one of the first things that as a landlord you need to consider when you are looking to buy a rental property. I have seen several people get it so far off the mark it has been quite scary.

Case study

Several years ago I met with a couple who had bought a studio flat in Godmanchester – they got it at a bargain price – or so they had been told. Their expectation was quite specific and unfortunately the estate agent who sold it to them did not do anything to disagree with them. They were expecting that the apartment would attract a doctor or solicitor, who would only need to live there from Monday to Friday. Problem with that is that they had been sold a bit of a pup. The reason being the studio apartment was situated in block that took mainly homeless people with a drug issue. Not the best environment for anyone to live in regardless of profession (particularly the homeless people that lived there). Therefore, the expected return the couple were hoping for was way off the mark. 

However, you can still achieve and average 4 – 5% return  on freehold properties in Cambridgeshire.

Last year we introduced a landlord to a property that will achieve a 6.3% return, but they are few and far between.

A family will be looking for larger bedrooms with lots of plug points, schools, amenities and somewhere to park up to two cars.  Someone who works on the Cambridge Biomedical Campus  is looking for good links to Cambridge, have great coffee and restaurants within walking distance from home. Matched with the best Wi-Fi connection they can get. Both will start with a budget; both will be happy to increase that budget for the things they want.

Second tip  

How do I make sure my property sticks out from the competition?

Obvious one is the decoration – magnolia interiors are definitely a no no. Always provide a home with a neutral palate. 

Having great broadband available is a definite plus.

Have an electric charging point – Aviva have just reported that 22% of people looking to buy a home have put this as a demand they are now looking for – the focus is very much on green fixtures and fittings. So why should it be any different for people looking to rent a home? 

The main way you attract people is to have marketing shoots that stand out from the crowd. Rightmove claims that the best images increase the perception of value by 12%.  What we look for are clean crisp images – just have a look at the type of shots added by OPENrent to tell you what not to do!

To attract the right tenants and get the best shots you need to make sure that the home is decluttered – not to the point of being sterile as a landlord you want to be promoting a tidy and comfortable lifestyle. 

Make sure that all the lightbulbs are working particularly the one over the hob

Make sure that keys are available for garden gates and whilst on the subject of the garden make sure that the grass has just been cut and broken pots, children’s toys have all been put away.

In wintertime if you have an open fire place, there is nothing better to create a homely feel than a roaring fire.

Fruit and flowers are easy to add, as well as some coffee cups and a milk jug on a breakfast table look far more interesting than an empty space.

Third Tip 

Expand into the garden – perfect result for flexible working 

If anything, this became the issue that needed to be fixed for so many people during the pandemic. Due to the various lock downs and the acceptance that working from home has now become the norm, space for living and working at home heightened the demand for three bedroom homes. We saw a move away from studio apartments!

The third bedroom became the new home office. This matched with the availability of good broadband was a benefit that we made sure was highlighted in any marketing material. Where these have been put in place, we have seen an increase of £250 per month in the average rental value.

Another consideration is to build an outside office in the garden if space allows. Again, the main thing you need to be aware of is the availability of good broadband- just make sure the connection can reach the office.

Fourth Tip 

Be flexible 

They say that the UK is a nation of pet lovers and the number of pet owners over the pandemic has reached an all-time high. So, it constantly surprises me that a majority of landlords we work with strongly dislike allowing pets into their properties. However, I do understand if you have been bitten (pardon the pun) by a dog that has peed on the carpet and you were left with the cost of replacing the carpet.

Since the tenant fee ban, it is unlawful to take an additional ‘pet deposit’. Therefore, the only insurance you have is to charge extra for the rental. Most people understand this, given the lack of available pet friendly properties. You just need to make sure that you show this cost in any advertising. But the best insurance is to make sure that your prospective tenant is a good pet owner. Spoiler alert – there are no bad pets just bad owners! Asking for chip details and a reference from their vet is a good start.

Fifth tip 

Reduce your void periods 

The longer a void period the more it will hit your rental return. Matched with that, now council tax applies from the first day that the property is empty, it is becoming rather expensive to have an empty home. Although rents have been increasing so much we have found that tenants are deciding to remain in their home – we are now seeing the average tenancy length go to 48 months. But that does not mean that people will put up with poor service. The main reason that we do find that people look for a new home is that the maintenance has not been done or in most cases not been done  promptly. You have to keep on top of the maintenance. 

Sixth Tip   

Use a great agent 

A great agent will be looking for a good match for the property not a body. During initial conversations, they will be assessing what is important to your prospective tenant and what they would be willing to pay more for. Their marketing will attract the right sort of people with beautiful photos. A great agent will be pointing out the benefits of the area rather than just explaining that there is a kitchen in the house! A great agent will listen to you and your tenant to find the best match so that everyone feels they have a win win. Just like what we do on a day to day basis!

If you would like a 30 minute free call to find out how we could help you achieve a higher rental return. Just give us a call on 10480 494939 and ask for Maxine or Stephanie