November Landlord Journal: Boosting Rental Success in a Slowing Market
As the year nears its end, the rental market experiences a cooling trend with decreased demand. However, there are always tenants in search of properties to rent. It's important for landlords to adapt to the season and adjust their strategies accordingly.
With the colder weather and darker nights, fewer tenants tend to move in and out. This means an increase in available rental properties and a need for landlords to prioritise pricing and property presentation to minimise vacant periods and maximise occupancy levels.
In recent years, tenant expectations have risen when it comes to renting a property. With rental prices on the rise, tenants want to ensure they are getting value for their money. Landlords now have the responsibility of maintaining and upgrading their properties to meet these higher expectations.
By consistently making small improvements, landlords can prevent their properties from deteriorating over time, avoiding the need for costly full refurbishments to make them marketable again.
So, how can landlords secure tenants in a market with more choices? Creating a positive first impression is key. Maintaining a high standard of decoration throughout the property is crucial. Clean and neutral decor allows tenants to personalise the space and make it feel like home. Avoiding bold colours and feature walls will attract a wider audience.
The importance of furnishing
Historically, fully furnished properties were filled with mismatched and outdated furniture. However, tenants now seek comfort and cohesion. Providing comfortable beds, a decent sofa, and matching bedroom furniture not only attracts higher-quality tenants, but also encourages them to stay longer. We've partnered with furnishing solution provider David Phillips, who offers a wide range of options at different budget levels. While furnishing a property will raise up-front costs, your rental income will far outweigh this, potentially within a single year of being let to tenants. Read our guide on the benefits of furnishing your rental property today.
Does energy efficiency matter to tenants?
With a growing focus on environmental impact and rising energy costs, tenants are seeking energy-efficient homes. Small measures like draft-proofing windows and doors can reduce day-to-day running costs for tenants without burdening landlords. For those with more capital to invest, upgrades such as boilers, glazing, and insulation should be considered. Grant options are available, and Home Energy Scotland can provide more information. You can read more on how to make your property energy efficient here.
Considering a full property refurbishment?
Investing in upgrades like bathrooms, kitchens, and layout changes can increase rental value and attract higher-quality tenants. These improvements also lead to capital appreciation and potential refinancing opportunities. Ideally, these larger-scale projects should be undertaken when the property is vacant, but sometimes, they can be done with a tenant in place.
Additionally, creating a multifunctional flexible working space can increase interest in the property, especially with the rise of remote work. When your tenant is moving out, our team can provide quotes and advice on potential rent increases resulting from your upgrades.
For assistance and advice on upgrading your property, reach out to your local DJ Alexander team. We're here to help maximise your rental success.