Are you a landlord looking for strategies to maximise your rental income in Peterborough?
Are you a landlord looking for strategies to maximise your rental income in Peterborough? Here are some simple ideas for a changing market.
Peterborough is one of the UK’s fastest-growing cities. It’s also developed a reputation as one of the best places to live in the UK for young families. That presents exciting opportunities for landlords like you who are hoping to develop their property business. Unfortunately maximising your rental income in Peterborough is not as straightforward as you may have hoped.
>> 7 reasons it’s a fantastic time to live in Peterborough
Popularity versus prices
The popularity of Peterborough has had a dramatic impact on increasing the price of family homes. However the typical market rents for family homes have not increased at the same rate. So while families are flocking in droves to Peterborough, traditional family lets are now failing to create enough rental income for landlords to generate meaningful profits. It can even be a struggle for landlords to cover the mortgage repayments on their rental properties.
So what can you do to maximise your rental income in Peterborough?
Consider different types of let...
Let’s talk economics. Each family let typically contains just two - and sometimes only one - occupant with disposable income. That limits the amount of income you can generate on a per-bedroom basis. But when you open the front door of your property to different types of sharers, you can increase the amount of disposable income in your house and recoup more per bedroom. Let’s take a look.
The development of University Centre Peterborough has made the city quietly, yet increasingly, popular with students. It goes without saying that many students are not exactly flush with cash. But student loans mean that those in further education often have more disposable monthly income on a per household basis than some families. Worth considering.
The employment rate in Peterborough is 4% higher than the UK average. Millions of pounds worth of redevelopment - such as Cathedral Square, St John’s Square and Fletton Quays - together with strong performance in sectors like engineering, agri-tech and financial services are making Peterborough an attractive proposition for young professionals. They are here to earn and they need somewhere to live.
Standard houseshares are let on a one-person-per-bedroom basis. Many landlords are resistant to allowing couples to share a bedroom together in multi-bedroom houseshares. Why? As long as the other tenants are happy you could begin to welcome couples and increase the rental price of the bedroom they are sharing.
We are a nation of animal lovers. But it seems most landlords haven’t got the memo, stubbornly refusing to allow pets in their properties. Yet there’s no doubt that many animals are better housetrained than some humans. Allowing your tenants to keep a pet in the house allows you to increase your rental charges and can dramatically enhance tenant interest in your property.
Like most other markets, the market rates for rental properties tend to appreciate over time. You should review rent on an annual basis. Many landlords fail to do so and as such some tenants pay anywhere from £50 - £150 per month below the market value.
Staying on the right side of the law
Making changes to the type of tenants you accept isn’t as simple as making up your mind and altering your property description. It could impact the type of tenancy agreement you offer and you will most likely have to change the insurance policies relating to both your property and your lettings ventures. You may even need to change mortgage.
At Belvoir Peterborough we have the expert advice to make sure you don’t get caught out by red tape. We help landlords maximise their rental income in Peterborough without falling foul of legal obligations - whether that’s with tailored insurance policies, rent guarantee schemes, high damage deposits, cleaning fee clauses or something else.
Let’s get started...
If you really want to home in on profits, it’s pertinent to consider different types of let. Target a wider audience and a more diverse market and you really can maximise your rental income in Peterborough. For a free market appraisal - or simply a chat and some friendly advice - feel free to contact me directly. Here at Belvoir Peterborough we are highly-experienced lettings experts that have helped thousands of clients build rewarding rental portfolios.
This blog is written by Luke, Luke Clarke is Belvoir Peterborough’s Lettings Manager. Luke has over 12 years of property experience and has built up unrivalled expertise in the lettings industry and remains a tried and tested advisor for landlords who not only intrust Luke with the complexities of day to day property management but also to assist them with the ongoing development of their property portfolio.