At Holmes Estate Agents, we understand the importance of finding a suitable area that provides you with a return. There are many reasons why you should consider buying in Streatham. There is rental demand in the area, and if you have a personal reason to invest here, all the better.
Consider the expected financial return from rental accommodation
However, no matter the allure of a personal connection with the area, investors need to have a financial reason to buy property. When you buy to let, you need to be confident that there is a suitable rental yield. According to the rentalyield.com website, investors can obtain the following rental yields in the SW16 postcode area of Streatham:
· Expected rental return for a one-bedroom property in SW16 is: 5.26%
· Expected rental yield for a two-bedroom property in SW16 is: 5.15%
· Expected rental yield for a three-bedroom property in SW16 is: 4.55%
· Expected rental return for a four-bedroom property in SW16 is: 4.3%
· Expected rental yield for a five-bedroom property in SW16 is: 4.35%
Some of these expected rental yields are enticing while some of them will leave investors looking for more. However, it is essential to be aware these figures are expected returns, and an indicator of the average returns a landlord can receive when letting property in SW16.
There are ways to improve the rental yield obtained from property and at Holmes Estate Agents, we have helped many landlords enjoy a strong return in the local area.
One of the first steps in improving your rental yield is to review your outgoings. Landlords and investors naturally consider increasing rent to improve their rental yield, but this can be a limited strategy in the short-term. Over time, tenants will move out if rents increase too much and it will be difficult to entice new tenants.
Therefore, landlords should consider their outgoings and look for savings that can be applied. With monthly mortgage payments likely to be the most significant payment made by a landlord, this is a good starting point to consider. Review your mortgage and compare it with other leases in the market. You may be able to reduce your monthly outgoings, which will help you to enjoy a stronger return on your rental accommodation.
Carry out the right refurbishments
Landlords must keep their house up to date, and providing suitable features will make the home more attractive. In the present day, virtually all tenants are looking for reliable broadband connectivity.
Some landlords will find that providing a high-standard of broadband pleases their tenants while providing them with an opportunity to generate more income.
Offer storage solutions
Another way landlords can improve the service they offer to tenants is to provide more storage. Everyone is looking for more space at home, and storage solutions provide space. Whether you provide a storage option in the rental property or pay for external storage solutions, you can give the tenants a better service.
It is always possible for landlords to improve their rental yield and if you are looking for guidance in this matter, please get in touch. At Holmes Estate Agents, we are always here to help.