It’s no secret that the Bristol rental market is one of the most successful in the UK with people flocking to the south west each year to set up camp in this wonderful city of ours. However, with the lettings industry at its most competitive, how as landlords can you differentiate your property from the rest and ensure the best return possible on your investment?
Firstly, let’s talk numbers. The rental yield for any given property is the rate of how much return you will get on your investment over the course of a year (expressed in percentage terms). To calculate rental yield, a simple formula can be applied as follows: Take the annual rental income achieved (weekly rent x 52 weeks) and divide by the property value. Multiply by 100 for the percentage rate.
For example, let’s say you have invested £180,000 in a flat in the city centre which is achieving a rent of £250 per week, the rental yield on this property would be 7.22%.
Recent studies have placed the average yield for rental in Bristol at 5% and as the market grows continually stronger, the city offers a solid choice for investors (both current and future).
Once you have selected the property and the type of tenant you are looking for, the key to maintaining a stable rental yield is proper upkeep and regular property maintenance. If you have tenants moving out, do the walls look tired? Do the carpets look worn and in need of a freshen up? Are any appliances/fittings looking a little out of date? Is the furniture mismatched? Does the bathroom need retiling? It’s quite amazing what a fresh lick of paint everywhere can do and simple jobs like this can often be the difference in a property being snapped up on the first viewing to having it hang around on the market for a long time.
With more and more property available to rent in Bristol, tenants are taking their time in choosing the place that is exactly right for them (and rightly so!). Regular maintenance and updates between tenancies can not only create a space which is new, fresh and more attractive to applicants, but can also save more extensive and costly renovations further down the line.
If you are looking for your next project, Bristol is definitely a city worth investing in. There are of course calculations to be done depending on the sort of property you are looking for but rental yields in general are strong and something that is definitely worth looking into.