Landlords looking to maximise returns on their rental, may find inspiration in an unlikely place: the boardrooms of Japan’s top companies. 

The bosses at Sony, Samsung, Honda and Toyota are all guided by a tried-and-tested philosophy that could be very profitable for your rental business as well.

The principle is called kaizen, which loosely translates as ‘change for the better’. 

Kaizen is about making continuous improvements across many different areas of your business. The theory is that when you add all these improvements together, the impact is significant.

This is particularly relevant for landlords whose role, by its very nature, involves a multitude of tasks and responsibilities.

So try to make improvements, even small ones, in many aspects of your business to maximise your returns.

Here are six areas to focus on.

Review your rent

The market is always changing, so it’s good to review your rent every now and again to ensure you have the balance right. After all, if you go too high, good potential tenants will look elsewhere. Go too low, and you’ll lose out on valuable income. If you’d like a professional opinion, call us and we can provide an update on the local market.  

Upgrade 

Tenants tend to prioritise kitchens, bathrooms and floors so make sure they don’t look tired or outdated. Small improvements, such as regrouting bathroom tiles or giving kitchen cabinets a lick of paint, can make a real difference.

Tenant selection

Void periods eat into your revenue, which is why finding good, reliable long-term tenants is critical. Review your marketing and tenant screening systems to ensure you’re attracting a high calibre of candidates.

Furnish your rental

An increasing number of tenants are looking for turnkey properties, where they can simply unpack their clothes and move right in. This can involve a bigger outlay than some of the other options listed here but, done well in the right location, can significantly boost returns.

Be tax efficient

Good tax planning can save you in two ways. Firstly, you can ensure you have the most efficient tax structure and claim for everything to which you’re entitled. Secondly, you’ll avoid any nasty fines for late filing. With new rules on Making Tax Digital starting this month for landlords with qualifying income of £50,000 plus (and next April for those making £30,000 plus), you need to be organised.

Use a letting agent

An experienced letting agent can ensure you’re making the right continuous improvements to your rental business year-round. They can keep you up to date on regulatory and tax changes and ensure you don’t lose momentum on maintenance or inspections. 

If you’d like to have a professional on side who can help you with all aspects of your rental business, call us today.