Thanks to the government’s decision to crack down on landlord expenses and impose Stamp Duty on second homes, there may be some landlords out there feeling the pinch right now.
It may very well be time to think about how you can maximise your property investment/s. Here’s some of our ideas at Sourced. All of them, once implemented, should see your income from property begin to bounce back in a healthy fashion:
Turn your house into a HMO
If you’re currently the owner of a four or five bedroom property, then instead of renting it out as a family home, make more money selling ‘rooms’ by turning it into a HMO.
Go upmarket with serviced rooms
A good strategy if you live in a city centre or near large international companies, serviced apartments can prove a real winner. Your property can be rented out as a furnished holiday let (so no ‘landlord tax’), or as a long-term ‘guaranteed income’ company let.
Get an en-suite for every room
By providing swankier accommodation in your HMO, you’ll be able to increase the cost of rent, and at the same time, attract a more stable and wealthier tenant.
Complete a conversion
If your property has a garage or an attic, then consider undertaking a conversion. That way you’ll have an additional room to rent out and your home will be worth more in terms of capital.
Redecorate to a high standard
Attract higher paying tenants by installing a lovely new bathroom and kitchen in your property. Then, hire a decorator to see to the rest of the rooms. You should be able to increase the rent considerably and, again, the value of your property will increase.
Turn commercial premises into residential
Buying a shop with a flat or an office allows you to turn a formerly commercial premise into a residential property, but without losing out via the new landlord tax because it’ll be registered at commercial. You’ll also only have to pay 5% VAT on renovations for the conversion (rather than 20%).
Buy your property off-plan
Flipping is good if you have little time to invest in a property venture. Once you’ve done the initial research and found a development in a promising location, simply wait until the flats are completed (by which time they should have increased in value) and sell on.
Lease to a housing association
You may not command quite as high a rent as on the open market, but you’ll be guaranteed no void periods for a couple of years. The Association will also look after all the maintenance and repairs for you.
Specialise with your student let
Instead of going for undergraduates in your HMO, market to post-graduates and PHD students instead. It means having a sitting room, better decor and a more finished feel, but you’ll command more rent and the students are likely to stay for one to three years.
Target the luxury rental market
Very upmarket apartments – the type with designer artwork on the walls, expensive rugs, high-tech sound and electrical equipment as well as exquisite furniture – can command huge rentals. In a city centre or beautiful countryside setting, they’re often sought after by high-flying, headhunted executives who only ever stay in the one job for a year or two at a time so don’t have the inclination to lay down roots with their own property.
Looking to get involved in your next property project? Then let us help you find it. Learn about the Sourced to Order service here.
Author
Chris Kirkwood
