Instant 8% increase in rent after property makeover in Hammersmith

Earning yields of up to 6% in the outskirts of London is a great achievement. For more central areas such as Hammersmith, it’s truly incredible. But that’s exactly what Benham and Reeves have helped an overseas landlord achieve with the simple makeover of a 2-bed, 2-bath flat in Sovereign Court.

Benham and Reeves has been letting the home in Sovereign Court in Hammersmith (Zone 2), by St George, part of the Berkeley Group, since it completed in 2017.

The property had benefited from virtually no void periods as there had only been two tenants during the period. However, over time, the property had started to look a little tired because the landlord had little opportunity to get in and spend money on giving it a new lease of life.

Our Director, Marc von Grundherr’s advice to all investors is to always “invest in your investment”. Having not done so for the last seven years, and thanks to the continued huge demand in London’s rental market, the landlord could have taken the easy route and simply re-let the property without carrying out any renovation works at all.

However, the landlord made the decision to follow Marc’s advice and proceeded to ‘invest in their investment’, enlisting to ensure the property looked at its very best.

The following works were carried out

Redecoration throughout – all walls, ceilings and woodwork. Our advice is to never paint walls white and go instead for a different, albeit non-offensive colour. We decided on a light Ash-Grey which is currently very popular among leading interior designers.

Accent walls – We painted accent walls in the reception rooms and bedrooms to give the property a high-end and eye-catching look.

Replaced dining chairs – the existing set looked tired after eight years of heavy use.

Replaced all bedding – including new throws and dress cushions on the beds.

Replace the rug in the reception – and added bright cushions to the sofa and armchair.

Finally, we advised the landlord to fully dress and accessorise the property to give it a powerful wow factor.

All in all, the owner spent just under £8,500. It might sound like a lot, but considering that this is a £1m property, it’s money very well spent purely to maintain the home’s capital value and increase desirability.

With new photographs and a new virtual tour, the property was marketed the day after being dressed at a rent price 10% above that which it had previously achieved.

That very same evening, we received 17 enquiries. The next day, we conducted four viewings and accepted an offer from two young professionals.

The tenants were rapidly referenced and moved in four days later.

The result was an 8.2% increase in rental income for the landlord who will recoup the investment they made in adding new life to the property within four years.

And don’t forget, the money spent is tax deductible so the return will be even faster.

Despite there being six other two-bed flats in the same building priced at a lower rent, this flat enjoyed strong demand and was successfully let very quickly, proving how a well-dressed home will beat the competition, even if the asking price is higher.

That’s where the advice by Benham and Reeves, in partnership with our sister company InStyle Direct, pays dividends for investors.

For landlords wanting to achieve the best capital value and highest rent, please contact any of our branches.