Calculating Rental Yield Archives | Blue Crystal Property Management

How to achieve high property rental yields

What is a property’s rental yield and how to calculate it A property’s rental yield, also known as a property’s yield, is the annual return you achieve from renting out your property; in other words, it is essentially the amount of money you make in profit from rent. A property’s rental yield tells you the percentage return your rental income is generating against the property's original purchase price.

How to calculate your rental yield

Thinking of purchasing a buy-to-let property? Prospective landlords need to familiarise themselves with the term ‘annual rental yield’, which is the gross amount of rent an owner is likely to receive over the course of a year. If you’re new to buying-to-let, working out rental yield is not too taxing. All you need to do is some straightforward sums.

How to manage your rental property effectively

What is involved in ongoing management and maintenance of a rental property? Not all property investors are interested in being a landlord. The thought of actually dealing with all that property maintenance and tricky tenants can be very tricky The fact is, not everyone is suited to being a landlord. This can require immense amount of patience and perseverence. As a landlord, you are constantly on call, you may find yourself dealing with a blocked sink on a Sunday morning. It is not for everyone. There are ongoing tasks to take care of on a day to day basis. Once a tenant has moved into a property and all regulations are met; You need to collect the monthly rental payments. Manage repayments should your tenant fall into arrears. Handle and respond to all maintenance enquires quickly and in a professinal manner. Update all safety certificates as and when necessary. Carry out regular property inspections.

Is buy to let investment right for you

A buy to let property investment is right for you of you prefer investments that are more tangible than stocks and shares. Are willing to tie up your money for a long period of time You accept that property prices can go down as well as up You are willing to take the risk that you may not earn a profit on your investment You understand and accept the additional risks that go along with borrowing money to buy a property You understand and accept the costs and time involved in owning and running a property and the impact that this will have on your potential return. When you become a landlord, you’re effectively running a small business and this comes with important legal responsibilities.

Points to consider before extending your property

Extensions are a great way to raise a property value or increase rental income though landlords should be careful not to overdevelop or comply with local planning rules. There are points to consider when carrying out an extension at your property; 1. Understand market needs The best time to extend is when you’re changing the property materially for a different demographic or market. For instance, if you have a two-bed house and you know the local market is short of three-bed properties. But be careful not to overdevelop the property so it is bigger than everything else in the street; some areas have a value limit. Houses in multiple occupation (HMOs) and flat-shares generally make more sense to extend than family homes, because if you add another bedroom the rent increase will be incremental rather than marginal. An extra tenant in an HMO will earn you an extra room's rent, whereas an extra bedroom in a family home is unlikely to increase your rental income by more than 10-20 per cent.

How to ensure buy to let success with tenant management

How does let to buy work uk In this post, we would like to share with you some basic information on how does buy to let work. Also, you’ll find our top 10 tips to ensure buy to let success. 1. Choosing the right property at the right price Investing in the property market is usually all […]