Optimizing your Property for 2023

We’ve seen exponential rental and property market growth in the last year. Private rental prices rose by 3.4%, and fixed mortgage rates fell below 6% for the first time in months. So while new buyers were pushed out by the 15.5% property price inflation we saw in Q2 and Q3 of 2022, it meant existing homeowners saw the average price of their properties increase by 16.4%.

However, as always, the market remains volatile. The Royal Institute of Chartered Surveyors (RICS) predicts that the annual property inflation increases we’ve seen will hit the brakes in 2023. In a sobering report by the RICS, they explain: Not only is property inflation slowing, but by the end of 2023, it’ll be the lowest we’ve seen in 13 years. But unfortunately, it’s not just that - as they report, the slight dip we’ve seen in mortgage rates is due to skyrocketing.

This leaves the question of how landlords can guard their investments in years to come.

Optimizing your Assets

Many are taking a great approach to improve upon the portfolio they already have. So although there are price hikes to come, one thing that should remain constant is the growth in rental value. Industry experts predicts high levels of rental value growth will persist across the country through the coming months. This is mainly because the demand for properties currently exceeds the supply. And it is an opportunity for landlords and property owners to recoup the losses they may incur next. So does this mean we landlords should drive up their rental prices?

That is one inevitable solution with the way the market is growing. But it may also be an excellent opportunity to improve your rental value by increasing property value. This means showing renters you have something unique and in-demand to offer from your portfolio.

So, what should we Optimize?

The best way to predict what future renters may want is to look closely at the challenges of your current tenants. One solution to this is to keep better inspection records of your properties.

There are many free periodic inspection software that you can use to keep tabs on the conditions of your home. This software can give you early insights into what needs to be improved.

Gary, 20 January 2023
Optimizing your Property for 2023

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