Maximizing Rental Income: A Landlord’s Guide to Boosting Yields in Manchester

The Manchester property market continues to thrive, with rental demand showing no signs of slowing down. Whether you’re a seasoned landlord or new to the game, maximizing rental income is crucial to achieving success. But how can you do this effectively in a competitive market? This guide will cover key strategies to help you boost your rental yields while keeping tenants satisfied. 

 

Before diving into how to improve rental yields, it’s essential to understand what it is and why it matters. Rental yield refers to the annual return on investment a property generates through rent. It’s typically expressed as a percentage and calculated using the formula: 

 

For example, if a property is worth £200,000 and generates £12,000 in annual rent, the rental yield would be 6%. 

 

Why Rental Yield Matters: 

High rental yields signify a profitable investment. In Manchester, yields can range between 6.5% and 7.6%, particularly in high-demand areas like Openshaw and Salford Quays. A higher yield helps ensure a better return on investment (ROI) and contributes to long-term financial stability for landlords. 

1. Ancoats: 

Once an industrial hub, Ancoats has transformed into one of Manchester’s trendiest areas, with high demand from young professionals. The combination of excellent transport links, proximity to the city centre, and vibrant community makes this area a top contender for rental investment. Yields here often reach 6-7%. 

 

2. Salford Quays: 

Home to MediaCityUK, Salford Quays is a media and tech hotspot. Its waterfront apartments and amenities attract a mix of professionals and young families. With ongoing development and regeneration projects, rental yields in Salford Quays are among the highest in Manchester, reaching up to 7.5% in some cases. 

 

3. Openshaw and Ordsall: 

More affordable yet rapidly developing, Openshaw and Ordsall offer landlords opportunities for high returns. These areas are seeing significant investment, making them attractive to those looking for properties with lower upfront costs but solid rental potential. 

 

1. Offer High-Demand Amenities 

Tenants today expect more from rental properties. To stay competitive and justify higher rents, consider offering amenities that make your property more appealing: 

 

Wi-Fi: Reliable internet is a must for tenants, particularly professionals and students. Offering free Wi-Fi as part of the rental package can set your property apart and allows you to charge a higher rent. 

 

In-Unit Washer/Dryer: Convenience is key. In-unit laundry facilities are highly valued, especially in city-centre flats where tenants might not have access to a Laundrette. 

 

Furnished Properties: For short-term lets, students, or young professionals, offering a fully furnished property can increase rental value significantly. Tenants are often willing to pay more for the convenience of a ready-to-live-in space. 

 

2. Upgrade Energy Efficiency 

With energy prices rising, eco-friendly properties are becoming more attractive to tenants. Investing in energy-efficient appliances, double glazing, and insulation upgrades can help you charge a premium on rent. Plus, properties with a good Energy Performance Certificate (EPC) rating are more likely to attract eco-conscious tenants who prioritise lower utility bills. 

 

Energy-Efficient Upgrades to Consider: 

 

3. Reduce Void Periods 

Void periods—when your property sits empty between tenants—can significantly affect your overall rental yield. The key to minimising void periods is ensuring your property remains desirable and well-maintained. Here’s how to reduce them: 

 

Regular Maintenance: Properties in good condition attract tenants quickly. Stay on top of repairs and upgrades to ensure your property remains appealing. 

Competitive Pricing: Pricing your property too high may deter tenants, leading to longer vacancies. Keep rents competitive by researching the local market regularly. 

 

Guaranteed Rent Schemes: One of the best ways to avoid void periods is by enrolling in a guaranteed rent scheme, like the one offered by Divrse. This ensures you receive consistent monthly income, even if your property is vacant. 

 

4. Target the Right Tenant Demographics 

Your ideal tenants will depend on the location of your property and its features. For example: 

 

Students and Young Professionals: Areas like Ancoats and Northern Quarter are popular with students and professionals. Offering furnished properties with modern appliances can help you charge higher rents. 

Families: If your property is located in a suburban area like Didsbury or Chorlton, cater to families by offering properties with ample space and proximity to good schools. Family tenants tend to stay longer, reducing turnover and void periods. 

 

5. Regular Portfolio Reviews 

As a landlord, it’s essential to review your property portfolio regularly. By assessing which properties are performing well and which ones may need upgrades, you can make data-driven decisions that improve your rental yield. 

 

What to Review: 

Rental Rates: Are you charging enough compared to the local market? 

Maintenance Costs: Are there properties requiring more repairs than others? It may be time for upgrades. 

Tenant Turnover: Properties with high turnover might need improvements or a different pricing strategy to retain tenants longer. 

Maximizing rental income doesn’t have to be complicated. By focusing on high-demand areas, offering key amenities, improving energy efficiency, and keeping properties well-maintained, you can boost your rental yields significantly. At Divrse, we offer comprehensive property management services that take the hassle out of managing your properties. Whether you’re looking to avoid void periods or enjoy guaranteed rent every month, we’re here to help.