How to Maximise Income on Property Rental

For many investors, moving into the property market can be an ideal way of generating a persistent income. Once you have purchased a property, you can put it up on the market to rent and eventually tenants will move into the property and will pay you a predetermined monthly fee for living there. A truly brilliant benefit of investing in the buy-to-let market is that, over time, the value of the property will increase. This can result in the property owner increasing the rental charges to the tenants in line with market values and, therefore, generating increased income. This helps buy-to-let investors beat any costs that are associated with inflation. It is estimated that there are around 8.5 million people in the UK who rent a property. This represents around 36% of the UK population and is a figure that has increased significantly in recent years. If you are looking to purchase property to generate income via rental, this article will be of assistance. Three specific factors to consider will be discussed that allow property owners to maximise their income on rental property.

Look at Up-and-Coming Areas

It is of paramount importance to consider the area in which your intended rental property is located. Ideally, it should be situated in fairly close proximity (or short travel time) to amenities, such as shops and restaurants. Also, it should be within walking distance of areas of natural beauty, such as parks or green areas. These factors are what prospective tenants will consider before choosing a property to rent, so consider the location of the property from the tenant’s perspective. In addition, it can be extremely valuable to research the neighbourhood and determine if it is an up-and-coming area that is experiencing growth. Over time, areas that grow more popular can command higher rental prices, which is great news for property owners looking to maximize their returns.

Rental to Fund Additional Properties

One of the most effective ways to maximize income from rental properties is by having a portfolio of homes, rather than just one. This is a strategy that will take time to achieve, as significant sums of money will be required to purchase multiple properties. However, by viewing the first rental property as a means to generate income that will be saved to purchase an additional home, a proportion of the revenue can be saved for this purpose. Put simply, when multiple properties are rented out, the total revenue streams can be significantly greater than for just one building.

Maximize Tax Benefits

As a final point, it is worth considering that several tax benefits come with owning rental properties. New landlords may not be aware of the range of costs that can be tax deductible and it is important to talk to property experts, such as Respect Mortgages, that can be found at http://www.respectmortgages.co.uk to gain a thorough understanding of the full range of tax benefits. For example, there is a range of tax write-offs that come with owning rental property, such as repair costs for the building (which includes the cost of renting or buying tools), property maintenance costs, and a range of insurance premiums. This is not an exhaustive list, so it makes sense to talk to experts in this field to fully appreciate the tax savings that can be achieved.