How to increase rental returns

by over 33% in Edinburgh

Increase rental yields in edinburgh

Having taken over a two-bedroom flat in Dalry, Edinburgh a year ago we carried out our initial inspection straight away.

Our first inspection found that the property was not in great condition. Although the tenants were not being that tidy the underlying problem was that the flat was tired and in need of some upgrades and improvement. It's hard to expect a tenant to maintain a property well if they are given a property already in poor condition.

Our focus at Clan Gordon is to manage good quality property for good landlords ensuring we can find the best possible tenants ad look after them well.

We, therefore, recommended that the landlord renovate this property to bring it up to that standard and the landlord was happy to do this. They were disappointed that their previous agent had not advised them that the flat had deteriorated this much.

Before renovation

Capital valuation£220,000
Rent£10,500
Gross yield4.8%

As the previous agent had allowed the property to deteriorate through a combination of poor tenant choices and lack of any maintenance routine the property had to be stripped back quite a bit first. A leak in the bathroom through the tiles had gone on for some time without the agent noticing so the bathroom was fully stripped out and some flooring replaced.

We also arranged for a new kitchen, flooring, carpets and furniture as well as replacing blinds and lampshades etc. All new furniture really finished the property off to a good standard.

Although some of the work was essential to bring the property up to the required standard for the average rent of around £1000 in this area we were so pleased with the level of upgrades agreed with the landlord that we advertised it at £1200 per month and found the perfect tenants quickly.

Post-renovation

Capital valuation£250,000
Rent£14,400
Gross yield5.8%

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