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If you are a landlord renting out your Newport property, you will no doubt want to leverage your rental property to maximise your return on investment. There are a number of ways by which this can be achieved. It may mean a little extra time an attention up front, but your efforts will pay out a greater reward in the medium to long term.
Although the property market can fall and rise, if you buy well your property rental income and capital growth will increase over time. It is vital that landlords deduct all costs from the projected rental income – the largest of which is usually the mortgage – and by dividing the net expected rental income into the value of the property the net rental yield can be calculated.
Accurate rental assessments are crucial for projecting realistic rental incomes. Use letting agents in Newport that can assess market conditions accurately and evaluate changing market demands, in order to best advise you on the best rental investment opportunities.
Conduct an annual review of your property portfolio. Landlords should review their portfolio to ensure healthy profit margins and minimal expenditure. They are often conducted in line with the financial year-end, but now is as good a time as any to ensure that all your investments are working efficiently.
Opportunities may exist to improve your property, either before a tenancy commences or once the current tenancy expires. Inspections and professional advice from an experienced letting agent in Newport can add value and highlight areas where refurbishment might be beneficial. Properties that make the best use of the space available can attract better tenants and maximise your rentals – both of which can minimise void periods.
Major improvements such as extensions, or new kitchens and bathrooms, should be planned to coincide with a change in tenancy and significant improvements can provide ample scope to increase the rental asking price. However, it is important that you stay within your budget.
Correct property preparation can also ensure that your property is let out quickly, which will reduce incidence of vacancy. Your return on investment can be diminished by having periods without tenants. It is important that your property is prepared well to appeal to prospective tenants, which includes inside and outside areas.
Reviewing your insurance is another good way to generate annual savings. The individual savings may not be terribly significant, but when added to your other savings the overall yield generated by the property can noticeably improve.
Finally, it is also important to review your mortgage and debt management arrangements regularly, as busy landlords can watch their fixed rate mortgage convert to a standard variable rate mortgage without taking any action. With fixed rate mortgages, switching your product before the end of the fixed term may not be cost-effective, as early redemption penalties can outweigh any potential savings offered by other lenders.