Maximising your rental property income
Many landlords and property investors are wondering reluctantly if it's now the time to sell their rented property. What with
- increasing tax on rental income since April 2017,
- the end of the furnished property tax allowance,
- and recent low rent increases
a property sale is something that property owners are beginning to *consider.
However, if you have any financial reserves to invest in enhancements to your rental property, this should help your property to
- let much more quickly,
- sustain the capital value,
- and increase the rental value too.
For example, we have a landlord who has just arranged to have their property redecorated, and to have new flooring fitted as well – at a total cost of £2100. Once completed, and by using new photographs, we would expect to attract a new tenant much more quickly. In addition, the rental can now be returned to the market level of £895 per month (previously appraised at £750 per month) and the landlord’s refurbishment costs will soon be recuperated with the additional £145 gained every month.
Property enhancements will also assist with improving your re-mortgage calculations. With current low interest rates on buy-to-let mortgages, this is a great opportunity to think about whether re-mortgaging will make you considerable savings.
Another one of our landlords recently re-mortgaged a buy-to-let property with a 2 year fixed rate, at 1.89% interest rate – saving £356.07 each month (previously £617.37, new mortgage £261.30). This adds up to over £8500 saved in the 2 years!
The Letting People’s refurbishment service can be used to bring your property up to a higher standard.
*And, if you think it probably is time to sell, we can also help you too ….
If you just need
- a sales appraisal,
- professional property description and photographs,
- advertising on Rightmove, Zoopla, and Prime Location,
and if you know you can do the other work yourself (viewings, buyer negotiation, sales progression, etc) we can get you marketing your property online for just £399! …. or alternatively, we can also help you with optional additional add-on services such as
- a professional floor plan
- an openhouse event,
- and/or an eye-catching For Sale signboard
Also, it is important to remember that in order to ensure that you receive the best financial advice for your circumstances, it is always advisable to use a recommended independent financial advisor.
If you’d like to know more about rental property refurbishments, a property sale, or finding local financial advisors, please just ask.