What properties give landlords best rental yields?

Sometimes you will see rental yields calculated as the rent divided by the purchase price of a property, that is true if you tie up working funds by paying outright for a property. However, most landlords will lever their working capital to maximise their return, rental yields then become the variance between income and outgoings, like any other business. 

Even with an interest only, buy-to-let mortgage there are still the deposit and purchase costs (capital invested) and mortgage interest payments included in the expenses. Purchase price and rental level is therefore the prime focus. 

Houses in Multiple Occupation (HMOs) usually give the highest yield, but they are difficult to manage and even harder to find. We live in an area with an “Additional Licencing” regime which prohibits any more large properties being split into flats unless it is done with full planning permission, which is expensive. The next best are two, and three, bedroom town houses, either terraced or semi-detached followed by bungalows. The added advantage of bungalows however is that they can be maintained with a step ladder! 

Whilst we are experts in the industry financial advice should be sought from a qualified person. Why not get in touch with our partner advisor, Haydn, if you are considering investing. 

Thanks for reading, Martin.

Simply Estates
High Street
LL18 2TU
United Kingdom

Phone:  01745 590919
Email: info@simplyestates.co.uk; rhuddlan@simplyestates.co.uk

Simply Estates
177 Wellington Road
LL18 1LW
United Kingdom

Phone:  01745 369764
Email: rhyl@simplyestates.co.uk

Can't find what you are looking for?

Our helpful team are on hand to answer any queries and concerns you may have.

Get in Touch

This website uses cookies. We use cookies to provide social media features and to analyse our traffic.
You consent to our cookies if you continue to use our website. Read our cookie policy. I understand