As the rental market in the UK continues to soar, letting agencies are continuing to seek innovative ways to both enhance their profitability and offer the highest levels of customer service to landlords and tenants alike.
And based on previous successes, Agent Rainmaker’s Sally Lawson believes one quick win and effective way to achieve additional revenue and better quality properties is to help landlords and advise them of refurbishments of properties.
She said: “Refurbishing rental properties can transform a property from completely undesirable to absolutely sought-after by a broader range of tenants. And with refurbished properties providing rental income increases of up to 20% compared to non-refurbished properties, it’s absolutely in the interest of the landlords to take care of their properties and modernise them, ready for market.
“Not only does this improve the rentability of properties and improve compliance, but it’s also opening up a better choice for would-be tenants at a time where there is a serious housing shortage across the country.”
Sally added that because refurbished properties are much more appealing, they result in lower vacancy rates, improved rent renewals and happier tenants. All of which ensures a steady stream of income for both landlords and agencies, and reduces the turnover and associated costs of finding new trustworthy tenants.
“Refurbishing regularly also enhances a property’s long-term value, making it a win:win:win for the agents, landlords, and tenants – who naturally want to live in a property which offers the highest standard within their budget. This increased worth makes a much more attractive investment for landlords and subsequently leads to higher management fees for an agency.
But before starting on any new investment, Sally offers three steps for letting agencies thinking of enhancing their property refurbishment strategy.
“Number one is to ensure you do the right market research. Understand the preferences and expectations of your target tenants, as well as their demographic, and tailor your projects to include features that are in high-demand, whether it be energy-efficiency, modern appliances, or updated bathrooms.
“Number two is to work closely with landlords to develop a refurbishment plan which balances both cost and potential rental income increase. Transparent communication around budgets and expected returns is a must, so do plan and budget effectively.
“Number three is all about quality and compliance. Ensure that all refurbishment work meets current health and safety legislation, and complies with local regulations. Even better, utilise the best qualified and insured contractors to make it run smoothly when you project manage and oversee the works to completion. This can ensure on-time delivery and high-quality results, minimising any potential disruption or delay to getting a property on the market.
“There’s so much benefit to be had from a refurbishment project but it’s important to do what’s necessary to improve the property and provide an attractive home for future tenants. And getting the best return on investment, offering something that’s already in high demand for potential tenants, and providing your landlord with both short–term and long-term benefits is key.
“It’s an incredibly exciting opportunity to jump on if you want to really move your letting business to the next level, and achieve higher profit margins.”
