How To Increase Rental Income in Central London

To maximise the rental income of your buy-to-let property, you must understand how to attract tenants who are willing to pay more or find ways to make your property stand out, allowing you to charge a premium rent. 

Rental properties in neighbourhoods like Primrose Hill and Fitzrovia are highly sought-after, yet house prices are high and as a result, rental yield can be relatively low. Market forces of supply and demand dictate the rent you can charge. However, as a local estate agent we know that there are simple things you can do to justify charging a higher rent than your competitors. 

You’ll need to be prepared to spend a little cash on the property, but if you’re careful, this investment will more than pay off in increased rental value and fewer void periods. 

17 Ways To Maximise Your Rental Income 

You will achieve the most rent by making sure your property is in the best possible condition. Below are sixteen ways that landlords can maximise the income from their rental properties. 

1. Refurbish And Redecorate 

Keeping your rental property looking its best will attract tenants and justify charging top rents. Your tenants will also be more likely to stay if you maintain the condition of your property, which will reduce void periods. 

Redecorating the walls and woodwork will help to freshen up your property and make it more appealing. Go for neutral colours to appeal to the broadest range of people possible. A fresh coat of paint is a low-cost way to enhance the appearance of living space. 

Professionally clean or replace worn-out carpets, curtains and furniture. Make simple cosmetic fixes, such as replacing the sealant around bathtubs. 

2. Rent Your Property Furnished 

Furnished properties can demand a higher rental price than unfurnished properties. In central London, furnished properties are sometimes more sought after, giving you a competitive advantage. Whilst you will have an initial outlay to furnish the property, over time, the additional rental income will cover this cost. 

Furnished properties usually attract young professionals and students. There is a high demand for furnished rental properties for international students in London, many of which are from affluent families who can afford central London rent prices.  

These types of tenants usually don’t have their own furniture and may be looking for short-term rentals, so they prefer furnished properties. 

3. Upgrade The Kitchen And Bathrooms 

Top of many renter’s wish lists is a modern and clean kitchen and bathroom, and tenants will pay a premium rent for such facilities. 

As a rule of thumb, a typical kitchen renovation will look “fresh” for the first five to 10 years and then start to look dated and worn. 

A new kitchen will usually cost between £5,000 and £20,000 but it is not always necessary to do a full renovation. You might be able to achieve a modern look by updating flooring, replacing the worktops and replacing or painting cabinet doors.  

Installing a new bathroom costs around £4,000 upwards but again, there are less costly upgrades you can make to create a modern appearance. For example, replacing fixtures such as taps, showerheads and toilet seats will provide a modern finish while costing just a few hundred pounds or less. Regrouting is another low-cost improvement that will significantly improve the aesthetic appeal of the bathroom or kitchen tiles. 

These smaller upgrades will cost much less than a full renovation yet can still have a big impact and make your property more attractive to tenants. 

Want to know more?  Read about transferring property to a limited company, discover how to become a landlord in Central London and explore our guide to buy to let guide for Central London.

4. Add An Extra Bedroom 

Adding a loft conversion or using the space above a garage to create an extra bedroom will instantly increase the rent you can charge for your property. Not only that, but the extension should boost the overall value of your investment. 

Take time to research the demand for different property types in your area, as there is little point in increasing the size of your property if there’s more demand for smaller homes. 

5. Make The Most Of Your Garden 

Many renters value outside space, so if you have a garden, make sure it is properly looked after. A seating area is an attractive selling point to any property, so replace tired outdoor furniture and arrange it well. You could consider adding a decking area or patio to your outdoor space to attract tenants who enjoy spending time relaxing outside. 

6. Make Your Property Attractive From The Outside 

First impressions count, so simple improvements to your property’s kerb appeal could increase its rental value. The first thing that potential tenants see is the outside of your property, so fix the fence panels, paint the front door, repair window frames as needed, and wash the windows. Prune trees, remove weeds and mow the lawn to make the exterior more attractive to tenants. 

7. Improve Your Storage 

Storage is always an appealing feature, and clever solutions like floating shelves, fitted units and loft space can help. Built-in or sliding-door cupboards and wardrobes are a good option for making a space feel bigger, particularly if you can capitalise on high ceilings. Meanwhile, bicycle storage could clinch the deal for those without a car. 

8. Allow Pets 

Often, landlords are wary of pets because of fears of noise, smells and damage, yet three quarters of renters own, or want to own, a pet. Pet owners may struggle to find the right rental place and be keen to stay put once they do. Through careful discussion and setting up specific pet tenancy contracts, landlords can appeal to tenants who are prepared to pay extra for the privilege of owning the pet they’ve always wanted.  

The impending Renter’s Rights Bill will introduce a series of changes to legislation affecting landlords, including stronger rights for tenants to keep pets. Under the current plans, landlords will no longer be able to unreasonably refuse to allow pets in their rental properties. With this in mind, it is a good time to change your stance on allowing pets to attract a bigger pool of tenants given the new rule is likely to come into force in the near future anyway. 

9. Appeal To Tenant’s Lifestyle Requirements 

Another way to increase your rental value is by offering something that other landlords and competitors in your area are not offering. Careful research into the local rental market may reveal niche groups of tenants with specific lifestyle preferences who will be prepared to pay extra for particular facilities. 

For example, if parking is limited and charged at a premium in your area (which it generally is in the central London area), you could add a driveway. Homeworking has become commonplace, so installing fibre-optic broadband would be a non-negotiable for some professionals, therefore commanding a higher rental price. 

10. Quality Advertising And Photos 

Your chances of finding a tenant willing to pay top rent are higher if you have more people to choose from, so your advert must be as appealing as possible. Paying for professional photography and a floor plan will vastly improve your advert. Most good local letting agents offer photography services as part of their marketing packages. 

11. Offer High-Spec Fixtures And Fittings 

Prospective tenants looking for rental properties in central London will generally expect a high standard of fixtures and fitting in their rental property. This means you may want to consider providing high-spec features including a state-of-the-art security system incorporating CCTV, smart access controls and a safe to protect high-value belongings. 

Modern appliances and smart technology will also help to appeal to tenants who are looking for superior quality properties that meet their requirements. 

12. Consider Corporate Lets 

Corporate lets can be a good option as companies are often happy to pay a premium for quality accommodation and are willing to sign long leases. Corporate lets are typically used by businesses who pay for accommodation for employees who relocate for work or for contractors working on long-term projects.  

Often, the business will take out a long-term lease and may use the property over a period of years to provide accommodation for numerous employees who live in the property in succession.  

As well as corporate lets often providing the financial security of long-term leases, as the business is responsible for paying the rent, there is usually less risk of missed payments or tenant disputes. 

Corporate lets are in high demand for businesses based in central London and landlords will also benefit from peace of mind that professionals will usually take good care of the property. 

13. Consider An HMO 

The rental yield of a House in Multiple Occupation (HMO) is generally higher than a standard buy-to-let property due to the fact you are renting to several tenants rather than just one person or family. 

The demand for rooms in shared houses is increasing dramatically, compared to the demand for whole rental properties. Especially with the cost of living increasing, many people cannot afford to rent a whole flat or house. 

Another benefit of an HMO is that if you have one tenant that falls behind on rent, the rest of your income from the property will be unaffected, which can help with cash flow. 

14. Claim Every Tax Deductible You Can 

Make use of your ‘allowable expenses’, which can be used to reduce the amount of income tax payable on your profit. 

Tax deductible expenses include; 

• Fees payable to letting agents and accountants. 
• Insurance and certain legal costs. 
• Maintenance costs (not improvements). 
• General business costs, such as phone bills, vehicle costs if required for the business, and advertising. 

15. Review Your Mortgage 

It is important to review your mortgage when your previous agreement expires to ensure that you are getting the best deal from your mortgage lenders. Lower interest rates could make a big difference to your monthly repayments and the total amount you pay over the full mortgage term. 

While mortgage rates are currently higher than they were four or more years ago, average mortgage rates have been gradually reducing throughout the end of 2024 and first half of 2025. If your fixed mortgage rate is due to end in the next year or so, rates are predicted to come down further, which may help if you are currently on a higher mortgage rate. 

However, if you look to switch to a lower rate mortgage while you are still within a fixed term rate, it is likely that you will have to pay exit fees and it may not be worthwhile switching until the fixed term ends. 

16. Rental Property Value Calculator 

Regularly check the rental yield of your property using an online rental property value calculator. This can be used to ensure that the rent you are charging is making a profit and that your property is a worthwhile investment.

The rent calculator will take into consideration the property value, rent charged, and other factors such as mortgage rates, loan-to-value ratio and maintenance costs, to give you a rough rental valuation figure indicating how much you can make from the property. 

17. Consider Adding Solar Panels 

Solar panels can improve energy efficiency and increase the rental value of your London property by lowering energy bills, which is attractive to tenants. As a landlord whose property holds an EPC score of E, F or G, you may be eligible for funding for solar panels, wall and loft insulation and other measures under the ECO4 scheme. 

And Finally 

If you’re wondering how best to optimise your property’s rental value, you don’t need to go it alone. With our local knowledge of the central London rental market – in areas such as Camden, Fitzrovia, Mayfair, Primrose Hill, Baker Street, Maida Vale or St. John’s Wood – we can help you make sure you achieve the best rental value for your buy-to-let home. Contact us today for a chat about the services we offer.