How to maximise your returns as a buy-to-let landlord

Calculating and understanding return on investment (ROI) is an essential part of life as a landlord. With the right knowledge, a buy-to-let property investment can be particularly lucrative, with rental demand up and down the country remaining at an all-time high.

To make buy-to-let property a sound investment however, landlords cannot let market changes dictate their ROI. With this in mind, there are several steps you can take to maximise your buy-to-let returns, here are some of the best…

Choose your location wisely

Location is pretty important when purchasing any property, including a buy-to-let investment. To maximise your returns, do your research and delve as deep into prospective search areas as you can. Is there demand for rental property in the area? Do you have the services and support available locally to manage your buy-to-let? Will a potential location and available property types be good fits for your target tenant?

Purchase a fixer upper…

Purchasing a fixer upper is a tack taken by many property buyers. From the blank canvas of a new build to a major project involving something a little older, your choice of property provides the perfect opportunity to put your own stamp on things.

Fixer uppers are also great investments for landlords. These properties are after all typically priced below market value due to the renovation work required, allowing landlords to purchase at a lower initial cost and realise impressive returns.

…but tread carefully!

By refurbishing the property, landlords can increase its value further, which could even mean higher rental income and better long-term capital growth. Sounds great, right? Only if you don’t fall for this classic landlord refurb mistake as The Independent Landlord describes:

“For landlords refurbishing older buy to let properties, under-estimating the cost of the works is a very common pitfall. It’s often not until work starts on a refurbishment, that the full scope comes to light. I’m certainly guilty of this! In some ways, a back to brick refurb is easier as you cost everything. It’s projects where a light refurb is assumed where costs can run away with themselves. Often it’s a case of lots of little things adding up.”

Get a good great mortgage deal

Start as you mean to go on by keeping one of the main ongoing costs of buy-to-let property investment manageable for you. You can do this rather easily with a little help from our independent mortgage advisors.

Our experts are ready and waiting to help you start or grow your property portfolio with the specialist buy-to-let mortgages you need to move forward with your purchase and reap the rewards.

Securing the right buy-to-let mortgage product could mean the difference between enjoying great returns and losing money. We can find you a competitive interest rate that will reduce monthly costs and increase your rental yield, ensuring the financial flexibility to enjoy life as a landlord, reinvest in property improvements, manage void periods, and even expand your portfolio.

Get in touch with our team today to discuss your next steps.