Make sure your rental property generates a good rental yield.
For buy-to-let landlords the rental yield is pivotal to the success of the investment. When looking for a new investment you will need to crunch some numbers and consider different factors that you may not even think about when looking for a property for your own use. This guide will help you make the most of this investment asset to generate a healthy yield.
1. Research different lettings strategies.
Calculate the rent that could be achieved for both short and long term agreements, but remember short term lets warrant a higher rent due to the additional running costs between tenancies such as cleaning, in addition to factoring in void periods between tenants. Properties also should be fully equipped down to bedding, teaspoons and towels for shorter terms but are not necessary for longer tenancies. Or consider combining the two, renting your property in peak seasons for short terms, and in low season for a longer term if the property is situated in a place influenced by tourism seasonality.
2. Survey the competition.
Local real estate agents are your eyes and ears to what is happening in the market. Call on their knowledge to find out what property lets will and generates the best rent. This also gives you a great insight into the experience of an agent that you can use as way to choose which agent you want to help let your property.
3. Preparation is key.
Marketing a property that is not clean or in good order will not create a good first impression. Take time making sure that the property is ready for photos to get people excited about coming to view the property. Remember it takes just one person to fall in love with the property to take it so first impressions really do count.
4. Consider your market.
If you are aiming for professional tenants in Jakarta, then vicinity close to the office tends to be on top of their wish list, but if you are hoping to attract holiday makers for short term lets, think about distance to attractions and amenities. Check the competition to see what else is on the market and consider picking a smaller building where there are less units to let.
