CUT YOUR COSTS
One of the simplest ways to increase your profits with no cash investment is to reduce your outgoings, so take a look at the following areas for potential savings:
- Rather than auto-renewing buildings, contents, rent guarantee and public liability insurance, shop around for better deals and approach your existing providers for discounts.
- Paying down your buy-to-let mortgage early could give you greater long-term returns than leaving your money in a savings account.
The easiest way to get a handle on all your expenses, renewal dates and opportunities for savings is to create a spreadsheet in something like Excel to lay everything out in front of you.
INCREASE LUXURY, STYLE & COMFORT
The best tenants will happily pay more for well-designed, stylish and comfortable homes, so they’re a no-brainer if you want to maximise your income. Details that make a real difference include:
- Decorating with washable paint in fresh neutrals like warm white or soft stone, then cleaning the walls between tenancies and treating every room to a new coat at least every five years.
- Replacing old carpets and chipped laminate with engineered wood flooring, removing thresholds for a continuous sense of flow and modernity.
- Adding storage where it’s lacking, from a place to hide the ironing board and vacuum cleaner, to a medicine cabinet or vanity unit in the bathroom, to fitted wardrobes in tight bedrooms.
- Providing an excellent shower fitting with thermostatic controls and decent water pressure for an invigorating start to the day - ditch the dribbling hose!
Ultimately, the most successful rentals are consciously designed to attract high-quality tenants and keep them for the long-term, rather than being done on the cheap and full of tiny annoyances.
IMPROVE ENERGY EFFICIENCY
Regardless of whatever future laws are passed around minimum EPC ratings for rental property, higher utility bills are with us now, which makes energy-efficient homes a big deal for tenants.
- Cheap and instantly effective measures are flow restrictors on taps, and draught-proofing around window frames, doorways, letterboxes and keyholes.
- Replace outdated energy-guzzling appliances, particularly old ovens, fridges and boilers, with A+ rated models from well-respected brands like AEG, Bosch, Neff and Siemens.
- Add thermostats to radiators so your tenants can choose which rooms to heat, rather than having the heating on full blast everywhere, or sitting around in the cold to save cash.
It’s also worth remembering that improved energy efficiency will lift the sales value of your property, giving you more options in the future, whether that’s selling up or refinancing to expand your portfolio.
BUY A FIXER-UPPER
A proven buy-to-let formula takes a property that needs renovating and then adds value by unlocking its full potential. Some of the areas you could look at when carrying out major works include:
- Finding a way to gain an extra bedroom, perhaps by merging a separate kitchen and living room, converting a loft or garage, or adding an extension.
- Upgrading dated kitchens and bathrooms with shiny new fittings, sleek contemporary comforts and premium taps to dazzle potential tenants and future buyers.
- Stripping off outdated wallpaper and giving walls a fresh new skim of smooth plaster.
If you’re looking to renovate a rental property in Liverpool, talk to us before you start for a chat about what local tenants are looking for.
CHANGE TACK
Sometimes, the way to greater and sustainable profits is to find another angle for your buy-to-let business model, and possible new directions to explore include:
- Setting up a company to buy future rental homes could open up lower taxes, higher mortgage relief and easier inheritance planning around passing assets on to family.
- Converting your existing rental properties into HMOs (Homes of Multiple Occupation) or Holiday Lets, but check any local restrictions, permits and planning regulations first.
- If you own an entire house, dividing it into two or more self-contained apartments could give you access to a different audience and extra income.
What’s your next step?
If you’d like to know the profit potential of a rental property in Liverpool that you already own or are thinking of buying, we’re here to help.
Call us on 0151 280 4047 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for some expert, friendly and straightforward advice to maximise the performance of your investment.