Getting better returns from a housing association tenant in the UK can depend on various factors, including the location of the property, the terms of the tenancy agreement, and the demand for rental properties in that area. Here are some considerations to keep in mind:
The location of the property is a crucial factor in determining rental returns. Properties in high-demand areas, such as city centres or areas with good transport links, tend to have better rental yields. Research the local rental market to understand the demand and rental rates in the specific area where your housing association property is located.
The condition of the property can significantly impact its rental potential. Ensure that the property is well-maintained, clean, and in good repair. A well-presented property is more likely to attract tenants and command higher rents.
Depending on your budget, consider making value-add improvements to the property. These could include upgrading the kitchen or bathroom, enhancing the curb appeal, or adding features that tenants might find attractive. However, be cautious not to overspend on improvements that won’t yield a significant increase in rent.
Analyse the demand for rental properties in your area. If there is a shortage of rental housing and a high demand for housing association properties, you might have the opportunity to command higher rents.
Conduct thorough market research to understand the rental rates for similar properties in the area. This will help you set a competitive rental price that offers good value to tenants while maximizing your returns.
Consider whether you will manage the property yourself or hire a property management company. While managing the property yourself might save money, a professional property manager can handle tasks such as tenant communication, maintenance, and rent collection, potentially reducing the stress and time investment on your part.
Choosing reliable and responsible tenants is essential to ensure consistent rental income and to minimize the risk of property damage. Proper tenant screening can help you avoid potential problems in the future.
Make sure you understand the legal obligations and responsibilities that come with renting out a property, including adhering to the terms of the housing association agreement and complying with relevant landlord-tenant laws.
Consider your long-term goals for the property. Are you looking for short-term rental income, or do you plan to hold onto the property for capital appreciation over time? Your strategy might influence how you approach rent pricing and property management.
Global investments specialise, with their partners, in the sourcing and selling of housing association stock that comes with upon completion of the transaction a tenant in place for 10years with an increasing rent and a full repairing and insuring lease. We have sold many properties of this type and can help in the right selection to fit your budget and circumstances.
It’s important to note that the relationship with a housing association might come with certain restrictions and guidelines that could impact your ability to set rents or make certain changes to the property. Always consult with legal and financial professionals before making any decisions that could affect your returns or the terms of the housing association agreement.
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