Why This Matters
If you’re a landlord with just one or two properties, the margins can feel tight. Whether it’s mortgage rate rises, new regulations, or tenants taking longer to find, there’s not a lot of room for error. But with a few clever tweaks, you can make your properties work harder without overhauling your portfolio.
This guide is not just a collection of ideas, but a comprehensive resource packed with realistic, tried-and-tested ways to help small portfolio landlords maximise rental income. From rent reviews and reducing void periods to tax tips and smart property upgrades, we’ll cover what you need to know to boost the return on your investment. You can trust that this guide has your best interests in mind.
How can I maximise rental income from my property?
The short answer: quite likely. Many landlords are undercharging rent, missing out on tax reliefs, or losing money during void periods. And with costs rising, it’s more important than ever to review where you might be leaving money on the table. The potential for increased income is there, waiting to be realised.
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What Are the Best Ways to Maximise Rental Income?
1. Review Your Rent—Regularly
Rents change—demand shifts. The market moves. If you haven’t reviewed your pricing in the last 12 months, you could be undercharging, potentially leaving hundreds of pounds on the table each year.
How to check if you’re on track:
- Look at comparable listings on sites like Rightmove or Zoopla.
- Ask a letting agent for a free rental valuation.
- Use online calculators as a guide, but don’t rely on them completely.
Even a £50/month increase adds up to £600 a year. Just ensure that any increase is reasonable and justified by the local market or the improvements you’ve made.
2. Avoid Empty Periods Like the Plague
Every day a property sits empty, it’s costing you money. You’ve still got the mortgage, insurance, and potentially council tax or utilities to cover.
Ways to keep voids to a minimum:
- Start advertising early—ideally 6 to 8 weeks before the end of a tenancy.
- Offer flexible viewing times to attract more interest.
- Build good tenant relationships so they’re more likely to stay.
If you manage the property yourself, having a reliable handyperson on call can also help you turn the place around faster between tenancies.
3. Add Value with Low-Cost Upgrades
You don’t need a complete refurbishment to justify higher rent. Some of the best returns come from small, thoughtful updates.
High-impact, low-cost improvements:
- Repainting in neutral tones
- Replacing worn carpets with hard-wearing flooring
- Upgrading light fittings, taps or door handles
- Installing fast broadband or better white goods
Consider what your ideal tenant is seeking. Young professionals may prefer stylish interiors and tech-friendly spaces, while families may value a low-maintenance garden or additional storage.
4. Improve Your Energy Efficiency
Energy Performance Certificates (EPCs) matter more than ever. Regulations are tightening, and tenants are becoming more energy-conscious.
Why this helps maximise rental income:
- A better EPC rating makes your property more attractive and allows you to charge a higher rent.
- It reduces running costs, which appeals to long-term tenants.
- You may qualify for tax relief or grants on green upgrades.
Insulation, double glazing, efficient boilers, and even smart meters can help improve your rating without breaking the bank.
5. Claim Every Tax Relief You’re Entitled To
Tax can feel complicated—but a good accountant can help you make sure you’re not paying more than you need to.
Reliefs and deductions to consider to maximise rental income:
- Repairs and maintenance (fixing a boiler or repainting counts, but building an extension doesn’t)
- Replacement of domestic items (like sofas, curtains or white goods)
- Letting agent fees and accountancy costs
- Mortgage interest (basic rate relief only, but still valuable)
Even travel costs for property inspections or mileage can be claimable in some situations.
Top tip: Keep good records of all income and expenses. Cloud software or even a simple spreadsheet can make life much easier at tax return time.
But what about big upgrades?
Not all expenses can be claimed straight away. If you improve a property rather than just maintain it, HMRC may class it as capital expenditure. That means it’s not deducted from your rental profits now—but it could reduce your Capital Gains Tax (CGT) bill when you eventually sell the property.
Examples of capital expenditure:
- Adding an extension
- Converting a loft into a bedroom
- Replacing a basic kitchen with a high-spec one that materially improves the property
These costs are added to the ‘base cost’ of your property. When you sell, they help reduce the taxable gain. So, while there’s no immediate benefit on your income tax return, they still have long-term value—especially if your property has grown in value over time.
Good to know: Keep all invoices and paperwork for capital work, even if it’s not claimable now. Your future self will thank you when it’s time to calculate CGT!
6. Make Sure You're Staying Compliant
Nobody wants a fine. Or worse, a legal dispute with a tenant. Staying on top of your legal obligations doesn’t just protect you—it can also protect your income. By ensuring compliance, you can feel secure in the knowledge that you’re doing everything you can to protect your investment.
Key compliance tasks:
- Annual gas safety certificates
- Five-yearly electrical installation checks (EICR)
- Deposit protection within 30 days
- Right to Rent checks
- Properly drawn up tenancy agreement
- EPC ratings of E or higher
Falling behind can lead to void periods, fines, or being unable to regain possession of your property when you need to.
Conclusion: Small Changes, Big Difference
Being a landlord isn’t always easy—especially if it’s not your full-time job. But a few smart decisions each year can make a big difference to your bottom line. Whether it’s reviewing your rent, planning ahead to avoid voids, or getting your tax in order, small portfolio landlords have more control than you might think.
If you’d like a second opinion to maximise rental income—or a fresh pair of eyes on your accounts—just give us a shout.
Want to maximise rental income from your property without more stress?
We help small landlords across Southampton and the South Coast get the most out of their investments. Book a free chat with BBK Accounts to see how we can help.
Frequently Asked Questions
Be transparent. If your costs have increased or you’ve made upgrades, explain why a small increase is fair. Give plenty of notice—ideally 2–3 months—and always put it in writing.
It depends on your market. In city centres or student lets, furnished is often expected. In family homes, tenants may prefer unfurnished. Furnished properties can command slightly higher rent but may require more upkeep.
It depends whether the work counts as a repair (which is tax-deductible) or an improvement (which usually isn’t). Replacing a broken oven = repair. Installing a brand-new fitted kitchen where there wasn’t one = improvement.
