Blog / Landlords | 9 Mins Read

How to Increase Rental Income as a Landlord in and Around Peterborough

Name: How to Increase Rental Income as a Landlord in and Around Peterborough
Brand: Progressive Lets
Rating: 4.9 (499 reviews)

By Wayne Beecham | Created on 17th March 2025

For a buy-to-let to be profitable, the rental yield must be high enough to cover the cost of the mortgage repayments, any maintenance which may arise and cover a couple of monthly void periods. Otherwise, investing is pointless unless you can find a way to increase rental income.

Many lenders won’t fund a buy-to-let unless the landlord can prove that they can collect 125% of the property’s value in rent.

The property’s location is important in how much rental yield is achievable. The good news for landlords in Peterborough is that the area is one of the best places in the UK to have a buy-to-let property.

Peterborough is popular for renters as it is one of the most affordable commuter towns, with train links to Kings Cross taking less than an hour. Areas such as Northampton and Rushden also have good roads links for travelling into Birmingham and Coventry.

A recent survey ranked Peterborough as 5th best place in the UK for buy-to-let, based on factors such as average total rent and short-term and long-term returns. Indicating that landlords looking to expand their property portfolio can make sound long-term property investments in Peterborough.

So, if you’re a landlord in Peterborough and feel your rental yield isn’t high enough – or you’re just breaking even – then read this article to find out how to increase rental income for your property.

There are several ways, and not all involve spending more money.

What Is Rental Yield?

Rental yield is the annual return a buy-to-let landlord makes on their property. That’s the money left over after all the expenses have been paid, divided by the purchase price. It’s then converted into a percentage by multiplying the number by 100. Read our blog on how to work out rental yield for more information.

What Is A Good Rental Yield Near Peterborough?

A good rental yield is around 7% or 8%. However, it depends on where the property is. Big northern university cities like Manchester and Newcastle tend to have high rental yields of 10% or even 12%. In contrast, London (saturated by rental properties and has very high purchase costs) will only yield around 4% to 5% in many locations.

In the Peterborough postcode areas of PE2 and PE4, recent data shows that the average rental yield was 5.1%. In some areas of Northampton, property yields of around 5.8% are available.

However, with average rents increasing and by identifying ways to increase rental value, you could generate a higher rental yield.

If you’re wondering how to increase rental value, it’ll be down to making your property high-spec and unique so that it stands above the competition and can attract a higher rental income.

18 Ways To Increase Rental Income

If you are wondering how to increase your rental income, follow these 18 tips:

1. Target A Particular Tenant Profile

It’s best to target a particular type of tenant to achieve high rental yields. For instance, a one-bed flat in a city is likely to attract young professionals. On the other hand, families generally want a house with a garden in an area with decent schools and nearby parks.

2. Consider Regeneration Areas

The way to boost your yield is to buy in a regeneration area (before that regeneration is even made public, if possible). If you know the local area and know that improvements are in the pipeline, for instance, that’s a good time to buy.

The reason is that property in up-and-coming areas usually increases in value as the district grows in popularity thanks to its improved amenities.

3. Add Extra Appliances And Smart Features

Equip your property with added extras like super-fast broadband, a dishwasher, smart TV, modern kitchen appliances and any other impressive or time-saving gadget a potential tenant will love.

Give them mod cons such as these, and you can be sure of having a high rental yield property.

4. Enhance Energy Efficiency

By providing energy efficient appliances, you can attract tenants looking to pay lower energy bills.

You can also improve the energy efficiency of the property by installing insulation, sealing gaps around windows and doors or installing a new, energy efficient boiler.

5. Create A Home Office Space

With many businesses now offering hybrid working models or remote working, creating an office space in the property will ensure the property is suitable for professionals who work from home.

6. Enhance Security

The security of the property will also be important to prospective tenants, so it will help to improve the security, by fitting window locks, installing a burglar alarm, security lights, gates and fences and fitting doors with anti-snap locks.

7. Provide Ample Storage Space

Many renters will have belongings that they need to store, so ensuring they have adequate space for bulky furniture, bikes and other items will be beneficial.

You might consider installing loft boards to allow storage in the loft or build an outdoor storage solution like a shed. This will help to ensure tenants have ample living space that isn’t cramped with belongings.

8. Keep Your Tenants Happy

Always try to attend to repairs in your rental property as soon as possible – and get back to your tenants quickly.

A landlord who cares that the boiler isn’t working and needs fixing right away is always appreciated by tenants, making them more likely to stay renting your property for longer. Having fewer void periods is an excellent way to ensure you receive maximum rent.

9. Allow pets

During lockdown, the number of households acquiring a new pet went through the roof. We’re talking a couple of million new animals, at least. We’re betting not all of those animals went to individuals, couples or families who owned their homes.

Tenants will cherish a rental property which permits pets. It will also make your property much more attractive than the local competition, which bans animals.

It is worth bearing in mind that the proposed Renters Rights Bill will prevent landlords from implementing an outright ban on pets. Tenants will be able to request permission to have a pet, and landlords must have reasonable grounds to refuse.

10. Refresh Your Property Between Tenancies

A property which has been newly decorated always looks great and feels new and fresh. You could always go one step further and update the kitchen or bathroom if either looks a bit dated.

You should arrange for a refresh between tenancies, even if it is just a new coat of paint to cover some scuffs. Ensure any repairs are completed, whether a dripping tap or broken blinds. When redecorating, try to ensure that you choose a neutral colour so you don’t put prospective tenants off if they don’t share your taste in interior design.

11. Upgrade The Kitchen And Bathroom

A new kitchen or bathroom is a significant investment but can increase your rental yield. Not only will you be able to increase the rent, but you should find that your property is snapped up quickly, reducing void periods. In a competitive market, you may also find tenants bidding against each other for your property.

12. Add An Extra Bedroom

Adding extra bedrooms is a great way to maximise your rental income, either to attract a larger family or you may even consider renting out as an HMO. You could explore the option of converting a garage or loft into an extra bedroom.

13. Make The Most Of The Outside Space

In recent years, there has been a noticeable increase in the number of renters looking for a property with outdoor space. If you have some outdoor space, optimising this area will make the property more appealing.

From adding a table and chair to tidying up the garden and adding flowers and greenery, even small changes will go a long way. Adding a hedge or fence to provide more privacy in the garden is another way of making it more attractive to potential tenants.

14. Implement Flexible Lease Terms

Providing tenants with more flexibility to choose the length of lease, to give them more freedom to move out should their circumstances change. This could help you to attract professionals who work as contractors, for example.

15. Make Regular Rent Reviews

Even if you have long-term tenants, it is essential to regularly review your rent to check it is in line with similar rental properties in your area. You can increase the rent when the tenancy agreement’s fixed term finishes and provide a new tenancy agreement.

If you are unsure what the average rental income is in the area, check on property portals – you may find that you can command a much higher rent.

16. Re-mortgage For A Better Deal

Getting a cheaper mortgage will make your rental property more profitable. So, keeping an eye on what’s happening in the buy-to-let finance field is always a good idea. And, if you can, pay off some more of your mortgage to sweeten the deal even more.

17. Make Use Of Your Allowable Expenses

As a landlord, one of your main expenses will be tax. Understanding all the allowable expenses that landlords are eligible for can help you to minimise your tax deductions – and overall landlord costs.

For example, professional fees such as agent/property manager fees, property maintenance costs and landlord insurance are all allowable expenses.

18. Consider Letting Through A Limited Company

While setting up as a limited company will involve some extra paperwork and tax processes, you can benefit from tax efficiencies, especially if you are a higher rate tax payer.

If you are a landlord in the Peterborough area, we can help you to maximise your rental yield and provide expertise in every aspect of letting property. Contact us today to find out more about our services in Corby, Boston and Spalding.

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Wayne Beecham

Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.

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How to Increase Rental Income as a Landlord in and Around Peterborough

What Is Rental Yield?

What Is A Good Rental Yield Near Peterborough?