With the property market continuing to show its resilience, investors are contemplating the best areas to invest in throughout the UK. As well as looking at which areas will provide the best returns, it is also important to consider strategies that can be used to maximise rental yields.
What is a good rental yield?
When investing in property there are many factors to consider including location, capital growth, rental demand and returns.
When working out if a potential investment is viable, the rental yield will give a good indication.
The rental yield is a measure of the return on a property investment. It is a percentage that is calculated by dividing the annual rental income by your initial investment.
A rental yield of 7 percent or more is considered 'very good' in the UK. Achieving such a yield is a combination of investing in the right area and using effective strategies that increase your rental income and reduce your outgoings.
How can I maximise my rental yield?
- Use a local letting agent
Using a letting agent can help increase the return on your property investment. Agents have knowledge of the local market and will know how to best advertise your property so that it is let soon as possible. This will help you to avoid vacancy periods, which can have a negative impact on your rental yield. It is often tempting to ditch the letting agent and manage your property
- Understand what renters are looking for in 2022
In recent years many of us have been spending a lot more time at home, as a result the priorities of renters has changed. Rental demand has increased in areas on the outskirts of cities where tenants are looking for more value and access to more open spaces. Up-and-coming areas just outside of city centres are proving to be areas of opportunity for buy to let investors. Lower prices and increased rental demand mean these areas are providing impressive rental returns.
- Consider furnishing your property
Furnished properties attract higher rent than unfurnished properties, with tenants often willing to pay a premium for the convenience that comes with a fully furnished property. You may find that your furnished property will not only let faster that if it was unfurnished, but it will also have fewer void periods.
Heaton Group develop properties in areas with the highest rental demand in the North West, providing our investors with excellent yields.
To find out more about the top performing areas in the North West, get in touch -
Call us on 01942 251 945 or email firstname.lastname@example.org