As Ajay Says - yield is key to a successul portfolio . Since we have already outlayed our capital , we can improve our yield by either reducing costs or increasing rents . Given that a lot of attention is given to reducing costs - sometimes efforts to increase rents fall by the wayside . Even the best salesperson finds it easier to reduce the price sometimes for an easy life - and we all know the benefits of accepting a slightly reduced rent vs having an empty property.
So which strategies should we employ to keep rents on the increase ?
A thought for the New Vat year for all of us who are using agents
Increasing Rents - Keeping pace with increased costs - improving yield
I have just been doing my tax return, groan, the one thing that is going to go up next year is the VAT agents charge. This VAT rise is not going to go down so when the intrest rates go up the raised level of VAT will be more than a pain in our sides.
I calculated that for me it will be an extra 2-3 of k's per annum. Especially if you include VAT on maintenance too.
So I have told all my agents I need a minimum of 4% rent increases this year, it probably will work out that in some areas I will get more and some less. Either which way the tax man wins.
Oh well at least the interest rates are wonderful on my older borrowings.
