If you plan on investing in rental property, it is important to focus on the expected rental yield.
At HoldenCopley, we are pleased to say we have helped many landlords and property investors. The expected rental yield is a crucial part of your research when deciding what property to invest in. If you would like to learn about rental yield for Long Eaton, or surrounding areas, please get in touch.
What is rental yield?
The rental yield of a property is an indicator of the yearly return a landlord or property investor will receive on their investment.
Rental yield is calculated by expressing the annual rental income as a percentage of the cost of the rental property.
As an example:
If the weekly rental fee of a flat is £200, the annual rent would be £10,300.
If the property cost £200,000; the rental yield would be 5.2%.
This figure is gross yield, and for net yield, you should include fees, repair costs and running costs of letting property.
Why is rental yield important?
Rental yield is important as it provides a quick overview of whether a property is likely to be profitable. There are steps landlords can carry out to improve the rental yield, so you can influence the return you receive on your investment.
However, the more appealing the property is without your intervention, the more attractive it should be as an investment opportunity.
For landlords and investors looking to maximise the return of their investment, rental yield gives you a fantastic starting point in your research.
Long Eaton rental yield in spring 2021
According to information provided by PropertyData, the best yield on offer in the NG10 postcode area is 4.5%, which is a typical yield for two-bedroom rental property. For a three-bedroom rental property in the NG10 postcode area, a typical yield is 4.3%.
However, it should be noted there are steps investors and landlords can take to improve the yield they enjoy from a rental property.
If you are interested in learning how to boost the expected rental yield from your property, please get in touch with HoldenCopley today.
Average rents in NG10 in spring 2021
The same source states the following average rents for property in the NG10 postcode area:
£441 per month for one-bedroom properties
£631 per month for two-bedroom properties
£770 per month for three-bedroom properties
Rental market snapshot in NG10
According to PropertyData, the NG10 postcode area sees an average of 70 rentals per month. There are 99 properties listed for rent, and the average time to rent is 43 days.
The same source states there is a 71% stock turnover per month, and the local market is classed as favourable for landlords. PropertyData recognises the NG10 postcode area as having a considerable demand for rental property, and that rental fees are likely to rise.
If you are a landlord in the local area or are considering investing in the local rental market, please get in touch. At HoldenCopley, we are local lettings specialists across Nottingham. From our new premises at 30 Market Place, Long Eaton, we look forward to assisting you as best we can, and we are here to connect landlords and tenants.
If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact HoldenCopley today by calling us on 01158969800 or emailing firstname.lastname@example.org.