What is a Guaranteed Rent Scheme and Is It Right for You?
November 2, 2024
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TL;DR
In 2025, UK landlords face challenges due to rising inflation and increased costs. However, strategic property enhancements, location selection, and management practices can significantly improve rental yields. For instance, areas like Sunderland and Liverpool offer average yields of 8.5% and 7.8%, respectively. Implementing targeted improvements and adopting efficient management strategies can help landlords achieve competitive returns.
What’s in This Article:
- Understanding Rental Yield
- Top Strategies to Enhance Rental Yield
- Property Enhancements
- Strategic Location Selection
- Effective Property Management Practices
- Legal Considerations and Market Trends
- How Citywide Housing Can Assist Landlords
Understanding Rental Yield
Rental yield is a key metric for property investors, representing the annual rental income as a percentage of the property’s value. In 2024, the average rental yield in the UK ranged between 5% and 8%, with areas like Sunderland offering yields up to 8.5%.
Top Strategies to Enhance Rental Yield
1. Property Enhancements
Investing in property improvements can increase its appeal and justify higher rents:
Additional Bedrooms or Bathrooms: Converting unused spaces into additional bedrooms or adding an extra bathroom can significantly boost rental income.
Modern Amenities: Upgrading kitchens, bathrooms, and adding high-speed internet can attract quality tenants willing to pay premium rents.
Energy Efficiency: Implementing energy-saving measures can reduce utility costs for tenants, making the property more attractive.
2. Strategic Location Selection
Investing in areas with high rental demand and lower property prices can yield higher returns:
Northern Regions: Areas like Sunderland and Liverpool offer higher yields due to affordable property prices and strong rental demand.
Regeneration Zones: Properties in cities undergoing regeneration, such as Liverpool, can benefit from increased demand and rising rents. Flambard Williams
3. Effective Property Management Practices
Efficient management ensures consistent rental income and tenant retention:
Regular Maintenance: Keeping the property well-maintained reduces vacancy periods and attracts long-term tenants.
Responsive Communication: Addressing tenant concerns promptly fosters good relationships and encourages renewals.
Professional Letting Agents: Engaging experienced agents can help in setting competitive rents and managing tenant expectations. Yield Investing+1Investropa+1
Legal Considerations and Market Trends
Landlords should stay informed about legislative changes and market dynamics:
Renters’ Rights Bill: Expected to become law in summer 2025, this bill introduces new regulations affecting rent increases and eviction processes.
Market Trends: While average rents have increased, growth has slowed, and supply has improved, providing tenants with more options and potentially affecting rental yields.
How Citywide Housing Can Assist Landlords
Citywide Housing offers services tailored to enhance rental yields:
Guaranteed Rent Scheme: Provides landlords with fixed monthly payments, eliminating concerns about void periods and arrears.
Property Management: Comprehensive services, including tenant sourcing, maintenance, and compliance, ensuring hassle-free management.
Market Insights: Expertise in identifying high-yield investment opportunities and advising on property enhancements.
FAQs About Rental Yield
A rental yield between 5% and 8% is considered good, with areas like Sunderland offering yields up to 8.5%. NatWest
Enhancing the property with additional rooms, modern amenities, and energy-efficient features can justify higher rents and attract quality tenants.
Regions in the North East and North West, such as Sunderland and Liverpool, offer some of the highest rental yields in the UK.
Contact us for a free property assessment and see how our guaranteed rent scheme can benefit your Leeds property.
How to Get Started with Citywide Housing Group
If you’re ready to secure fixed, reliable income with no voids or arrears, it’s time to join the growing number of landlords in Leeds benefiting from guaranteed rent schemes.
Contact Citywide Housing Group today to schedule your free property assessment and discover how we can help you unlock the potential of your property.
For more information, visit Citywide Housing or call us at 0113 323 0678.
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