Skip to main content

How to Make Your Tiny House Feel Bigger

Tiny houses are becoming more popular by the day, especially on rental sites like Airbnb. It takes minimalism to the next level, encouraging the idea that downsizing forces you to only have the things you need. 

However, it can be easy for a tiny house to feel cluttered and claustrophobic if you don’t know how to embrace it. Whilst you want your tiny house to be cosy, it still needs to feel spacious. Your guests should enjoy the warmth without feeling squashed.  

Fortunately, there are lots of ways to make smaller spaces feel bigger, so your tiny house can reach its full potential. 

Read Now: Is Buying an Airbnb Tiny Home a Good Investment? 

Pick a Colour Scheme 

Having the right colour scheme is crucial for setting the tone of your tiny house. In smaller spaces, opt to use light colours to make the room feel bigger. These reflect the natural light to give the feeling of a bigger space. 

Whilst dark colours can help to make a room feel cosier, when you are already working in a small space it can become claustrophobic. It’s better to stick to lighter colours and a simple colour scheme throughout the house. By keeping the colours similar, it helps to create a natural flow through the space. 

Optimise Storage Space 

When working with a small space, storage is key to reducing a cluttered feeling. Luckily, there are easy ways to create extra storage space that won’t impact the feel of the house. Furniture can often serve as a storage method. Get a coffee table with built-in drawers, or hollow out your stairs for extra space.  

In a tiny house, you want to use all the space you have in the most efficient way possible. Lots of regular furniture can be adapted to also hold storage. You don’t have to fill every space available, but this creates an easy way to remove clutter and keep things out of sight.  

Read Now: Airbnb Interior Design Advice: How to Create a Cohesive Space 

Choose the Right Furniture  

Picking the perfect furniture is always difficult, but it’s even harder when you don’t have a lot of space. The main aim is to make your space feel bigger than it is, without overcrowding it. Get sofas that are slightly elevated, and don’t position them flush against the wall.  

Creating space around it gives the impression that you have excess space available. It also allows you to see more of the floor, making the room feel bigger. 

You can also get floor-to-ceiling shelves, to draw the eye upwards and for extra storage. It makes good use of wall space and makes the ceilings look higher. This is a simple way to make the space feel bigger and optimise storage without losing the cosiness of a tiny house.  

Read Now: Interior Design in 2022: The Best Style for Your Airbnb 

Windows and Mirrors     

Light is one of the best ways to make a space feel bigger and airier. By pairing windows and mirrors, you can make the most of the light that your tiny house gets.  

Place large mirrors opposite windows to retract sunlight and expand the feeling of the room. You don’t want to place mirrors by cluttered or confined areas, as that will only make the space feel smaller. 

In a small space, the more windows, the better! Simple, uncovered windows can let plenty of light in to make the space feel bigger. Using sheer covers or blinds can be beneficial as they don’t take up much space.  

If you have a little more room to work with, use drapes that go past the windows. If your curtains start higher up and stretch out further, it creates the illusion of bigger windows. This makes it feel like you are in a bigger room!    

Be Minimal  

The easiest way to create more space is simple – have less stuff! The great thing about tiny houses is they force you to deliberate with your choices. It encourages you to remove any clutter to stop the room looking too busy, so you have to really think about what you want to keep. 

One bigger piece of art on the wall instead of multiple smaller pieces can make the space seem bigger. If you hang it at the average eye height, the space above the art gives the illusion of a taller room. 

Focus on simple décor that doesn’t take up too much space. You still want to include things that give your house a personality, but you have to edit and hone your ideas. The aim isn’t to show how much you can fit in your house – you want to emphasise how spacious your tiny home can be. 

Read Now: Top Interior Design Ideas for Rental Properties 

To Sum Up… 

There are loads of great ways to make a tiny house feel bigger, without impacting the cosy atmosphere you want to create. Make sure you get creative, edit everything, and remember: less is more! 

For more advice on how to manage your tiny house, contact the team at Keey today.  

How To Boost the Value of Your Property in 2022

When listing your property for rental, you should always consider increasing its value before putting it on the market. 

Financial value might be the first thing we think of when we talk about value, but when it comes to renting, aesthetic value can have a huge impact on returns.  

A property can justify high rent prices with its function and size, but if it looks dull, or even oppressive, it’ll be hard to attract enough interested renters to provide you with regular income. 

Read on for some key checks to make on functionality and top tips to get your property looking stylish and welcoming in 2022. 

Read Now: Renting Out Your Home on Airbnb: The Pros and Cons 

Make Utility Repairs 

Before thinking about updating the look of your property, the first thing to address is your plumbing and electric. 

Plumbing 

Ensuring that your water pipes are in the best condition they can be ensures that there won’t be any problems with water flow, such as blockages, or noises from the pipes. 

Neglecting your plumbing is one of the worst things you can do for your property’s value.  

Avoiding burst pipes and damp appearing on ceilings is key. Make sure to reseal the areas around the showers and baths in your property regularly.  

Electricity 

Your property’s electricity may be functional, but you’ll want to ensure that your wiring is efficient, practical and safe as possible.  

For example, if you’ve got one light switch that controls two sets of lights in a room, you could adjust this for a higher-quality renting experience. 

Checkatrade, a contractor listings company, estimates that repairs can add 3-5% to your property’s value, and note that working to rectify imperfections will make your property more appealing to renters. 

Taking these pre-emptive measures early can save you money on short-term property improvements while increasing the value and appeal of your property. 

Read Now: How to Carry Out a Thorough Rental Property Inspection 

Give Your Interior an Appealing Redesign 

If you get creative, redecorating indoors can be one of the cheapest ways to increase a property’s value. Aim for design choices that are eye-catching, yet have broad appeal. 

If your property is coated in off-white or beige paint, or simply hasn’t been decorated in many years, you may want to consider repainting it using brighter, more aesthetically pleasing colours. 

The best redecoration has mass aesthetic appeal, as you’ll likely draw in more potential renters in addition to being able to charge more on your property’s listing. 

Read Now: 3 Reasons Every Landlord Should Use an Interior Designer  

Painting your property’s interior can freshen it up, erasing years of wear and tear and adding value. 

Re-carpeting or installing wooden flooring can have a similar effect. In fact, Evolution Money, a loan company, suggest that by investing around £365 on your flooring, your property’s value can rise by 2%. 

Consider Remodelling a Room or Two 

Interior rooms that undergo lots of use like bathrooms and kitchens are those which show the worst signs of aging and wear.  

Remodelling these rooms will be expensive and time-consuming, especially if you’ve taken the time to pore over every element and hired a contractor. 

However, if you have the time and budget, remodelling your kitchen alone can raise the value of your property by 4.6%. Remodelling the bathroom can raise it by 2.9%. 

In the kitchen, consider replacing cupboards, shelves and doors. Countertops are an option, but you might need to pay a contractor to perform this work. 

In the bathroom, you can replace taps and sinks. 

Read Now: The Best and Worst Property Maintenance Projects for Your Rental Value 

Consider Remodelling Your Exterior 

Applying some TLC to the exterior of your property can give it new aesthetic ‘curb’ appeal, great for a first impression. This is hugely important when the first photos renters see of your property will likely be of the outside. 

The most extreme measures you can take here are: 

  • Repainting the exterior altogether 
  • Retiling the roof 
  • Installing solar panels 
  • Double-glazing windows. 

If you have a garden, adding a tile patio, gazebo, or garden office can modernise or add interest to an otherwise bog-standard lawn. 

If you’d prefer not to increase the scope of your property improvement project to this level, there are smaller changes that you can make that can still increase the value of your property. 

Outside, you can repaint your front door, add or replace a knocker, or replace the handle. You might also consider an entirely new door to make the best possible first impression. 

Whatever you decide to do, Checkatrade have a useful breakdown of the prices you can expect to pay when contracting the work out in 2022. 

Read Now: 5 Low Maintenance Landscaping Ideas to Complete Your Property 

Extend 

If your budget is large enough, one of the most drastic steps you can take to increase the value of your property is to install an extension. 

Extensions typically involve having a whole other room, and sometimes even more, affixed to the property.  

Flying Homes, a real-estate hub, found that 4-bedroom properties listed on Zoopla, a real-estate listing site, cost on average £85,000 more than 3-bedroom properties. 

Extensions are a costly undertaking, and it’s worth conducting your own research to compare the amount of money you’ll need to put into the project versus the valuation of your property afterward.  

As a landlord, you’ll also need to factor in how long it will take to recoup your costs from renters. The upshot is, of course, that you should be able to charge more for rent, and recoup costs quicker. 

If you already have an extension on your property, consider if there’s anything about it that feels ‘off’ when compared to the rest of it, and be ready to invest in solutions to make the whole house feel like one building. 

In Summary 

Maintaining your utilities, remodelling your most used rooms, and updating key features are the best ways to increase the financial and aesthetic values of your property. 

The good news is that you can tailor the extent to which you improve your property based on your resources. If on a budget, prioritise: consider replacing that scratched floor or stained carpet.  

Putting time and energy into updating your rental property ensures that your renters come away with the best impression and reviews to give of their stay. 

Related Articles

Keey can provide the best advice for improvements on single rental properties or an entire portfolio. Contact us today 

A Comprehensive Guide to Capital Growth vs. Rental Yield

Making a start in property investment can be nerve-wracking. There are so many terms to consider through this journey that the average Joe may be unfamiliar with. Two of those terms that are integral to understand are capital growth and rental yield. 

Some of the common questions asked surrounding these two terms usually start with: 

  • Which should I focus on more? 
  • Will there be an immediate return on investment?  
  • Or, is it more important to look to the future? 

However, it’s a little more complex than one being better than the other. It oftentimes comes down to personal circumstances as one money making strategy might not work for all. 

Capital growth and rental yield are both some of the most crucial factors of property investment success. The property industry’s lingo can often come across as a little intimidating. However, believe me, it is actually far simpler than it seems. By expanding your real-estate knowledge, you’ll be able to make the best money-smart decision for you.  

This article will help calm some of your anxiety surrounding property investment! It will break down and explain in detail what capital growth and rental yield are and how to calculate them. 

What is Capital Growth? 

Capital growth is also referred to as capital appreciation, and this is often the way that most people look to make money from their properties. At its most simple level, capital growth is the increase in the value of something over time. 

In theory, if you buy a property for £200,000, in 5 years you could sell your property for £250,000, depending on economic factors in the UK. With this example, you would have profited £50,000. 

Studies show that the UK property market has been on an upward trajectory for the best part of ten years, and aside from momentary dips, those who purchased back in 2011 may have seen considerable capital growth on their property investment. 

Capital growth is something that every property investor should keep in mind when it comes to investing in property. Making a wise property choice ensures that you can get the most out of your investment. 

The obvious thing about capital growth is that you can’t expect to have money just by sitting on your property investment forever. In order to see that return on investment (ROI), you’ll need to complete the sale of the property.  

That being said, choosing to profit through capital growth means that it is not a passive means of income and it is not an immediate profit. It is not something one should rely on for a huge pay-out right away – it is an investment in your future more so than anything. 

Can I Calculate Capital Growth? 

Capital growth is a relatively speculative figure. It can be hard to pin down an exact value for your property because it can be so dependent on external factors like the housing market and depreciation. So, while it is possible to calculate a ballpark figure that you can work with, it is important to note that it is incredibly subject to change. 

To calculate the percentage of capital growth, follow these simple steps: 

Step 1:  Work out the difference between the price you paid for the property and the price you are reselling the property for 

Step 2: Divide your profit by the original cost of the property 

Step 3: Multiply the answer by 100 to get the percentage. 

Here’s an example is broken down for you:  

  • Original cost of bought property = £200,000 
  • Current value of property = £250,000 
  • Profit = £50,000 
  • Divide profit (£50,000) by original cost of property (£200,000) 
  • Answer = 0.25 multiplied by 100 
  • Answer = 25%  
     

The capital growth of your property has grown by 25% over a period of [x] amount of time. 

There are also great tools online that can help you work out capital growth. For example, you can use a chrome extension called Advanced Property Insights. This works on many mainstream property websites and shows you deeper insights into the RIO for different properties. 

In terms of the optimal range, there actually isn’t really a ‘good’ percentage of capital growth, because any increase is beneficial. Although, if you were to consider price growth over the past 10 years, the average annual price increase works out at around 4.14%. 

How Can Capital Growth Increase? 

There are a few ways in which the potential capital growth of a property can increase. These include: 

1. Increase in the property market.  

This is the most hands-off approach to growing your properties capital. You don’t actually have to do anything at all to the property itself. It is just a case of holding off on selling until the market value increases. You can make quite good money from doing this. 

However, a downside to this method is that it is all about timing. Property values cannot always be guaranteed to rise. If this is the method you choose to go with, it is imperative that you consider the external factors that may increase the market value over time. These are things like high growth areas, good transport, or local investment.  

2. Improving the property’s value. 

You can improve your capital growth by making your property more valuable. This can be through small scale renovations, such as replacing appliances or updating a room or it could even be something as simple as getting a better real estate agent to sell the property.   

You could also have better marketing for the property or better photos on the advertising. This makes it look more valuable and entices more viewings and increases the potential for selling. 

3. Buying the property under market value.  

Oftentimes, homeowners decide to sell their property due to personal financial circumstances. Therefore, you may be able to bargain yourself below the current market value so the property owners can get a quick sell.  As you would have scored yourself a great deal buying for less than its market value, you’ve already made money on top of your purchase. 

4. Through development. 

You can greatly increase your capital growth through major renovations or constructions. For example, this could be something along the lines of buying a plot of land and then building a house on it or building a pool in your back garden if you have the space. These kinds of developments make properties unique and bolster the selling price, meaning that you have a greater chance of making a higher profit. 

What is Rental Yield? 

A rental yield is the amount of rent you are expecting to accumulate from your property or properties within a standard year. There are many external things that can affect your rental yield, and this includes the area your property is in, property prices, interest rates, rents, and tenant demand

Rental yield is a crucial figure to consider before you buy a property with the intention to rent. It is important to calculate the percentage of rental income you could receive beforehand in order to assess whether a property would be a good investment or not.  

Typically speaking, a good rental yield in London is between 5-8% of the cost of the property. A solid rental yield should be high enough that your total rental income covers all the necessary costs of running your property or properties while making a profit. 

For example, you need to know whether you can afford to cover the cost of your buy-to-let mortgage. Knowing your rental yield before you buy a property helps you to know whether the mortgage payments would be attainable to upkeep. 

Elements like property management costs should also be kept in mind, as you don’t want to have to find an alternative or emergency funds to cover any costs you could incur from letting your property. 

You want to make money as a landlord, not lose it! 

So How Do You Calculate Rental Yield? 

Calculating rental yield on a property that you own is very easy to do. There are two forms of rental yield: gross and net

Gross Rental Yield 

Calculating gross rental yield is easy. First, you need to find the total of a year’s rent on that particular property. Then, divide this number by the total property value. Finally, you need to multiply that figure by one hundred. This produces a percentage, and this is your gross rental yield.

Here’s an example is broken down for you:  

  • Original cost of bought property = £350,000 
  • Annual rent income = £14,400 
  • Profit = £50,000 
  • Divide annual rent income (£14,400) by original cost of property (£350,000) 
  • Answer = 0.41 multiplied by 100 
  • Answer = 4.1% gross rental yield. 

There are also free rental yield calculators online if you need to double-check your calculations. Such as LandlordVision or Douglas Allen

Net Rental Yield 

Working out the net rental yield for your property is a more accurate and precise calculation to show the total profit you make on your property through lettings.  

The net rental yield calculation includes your property’s running expenses (bills and/or mortgage payments) as well as covering wear and tear, general repairs, insurance and agent fees. 

In order to calculate net rental yield, and work out how viable an investment decision is, simply subtract annual expenses from the annual rental income, and divide this result by the total cost of the property. Then, you need to multiply the result by one hundred to produce your net rental yield percentage. 

How accurate are my calculations?  

If you don’t already own the property, and you’re trying to calculate the rental yield for a potential property investment, you may find that these calculated figures aren’t super accurate. That’s because you don’t necessarily know the exact figures yet of your new rental.  

For example, you won’t know for certain the upkeep expenses of the property or even how much you should charge your tenants for rent. 

Therefore, it is important to keep in mind that anything you calculate for a potential rental property is estimated and subject to change. You should also be aware that your rental yield calculation is only as accurate as of the numbers you put into it

The highest rental yield is not necessarily the most important factor in having a successful rental property. Yes, a high return on investment is great, but you also need to consider other factors to boost your investment returns. 

Check out things like the area you may purchase in, the type of tenants you want to rent to, the length of the tenancies you may get. All of these can affect your overall RIO. 

How to Increase Rental Yield? 

There are a few ways in which you can increase your annual rental yield. These are actions that you can take if you are losing money on your property or properties. For example: 

  1. Increase the rent. 

    This is not an endorsement of recklessly increasing the rent you charge to your tenants. However, check the general market rate for your specific area. If the rent level you have set is lower than this amount, you may be able to increase it. However, you will need to ensure that this is permitted within the Assured Shorthold Tenancy Agreement. 
  1. Cut the rent rate. 

    This may seem contradictory to the previous point, but it may make sense for your situation. If the rent level you have set is above the general market rate, it will be harder to retain longer-term tenants. You need to ensure your rent is reasonable enough for the area and amenities you are offering. Lowering it may encourage tenants to rent from you and can help to keep your income consistent.  
  1. Update your property. 

    You may be able to increase your rental yield by updating your property. This can be through updating appliances, paint work, or furniture. It can even be updated through making the property pet friendly. By adding or changing alluring qualities to your property, it may warrant a slight rent increase but is more so likely to keep tenants in the property for longer. 

On a similar note, purchasing newer furniture and appliances for your property may make them more reliable and durable. Having things at the beginning of their life cycle is more likely to last longer, reducing your replacement or maintenance costs. 

Should I Focus More on Capital Growth or Rental Yield? 

Whatever RIO you choose to focus on is very dependent on how you want to make your money back. If you’re someone who is wanting to make more of a passive income, you should perhaps focus on rental yield – that’s if you find good property managers to do the work for you of course. 

 Although, if you aren’t looking to make your RIO straight away and are considering a more so longer-term strategy, then it may be worth you focusing on gaining through capital growth.  

With capital growth, you are resting on the belief that the economy is improving, and house prices are rising. So, you might consider the past performance of an area and future forecasts more than the current tenant demand.  

However, with rental yield, you are betting against an increase in housing prices and interest rates. Therefore, you want to be on the level with your tenants. You need to know what tenants want and are looking for, and more importantly, which locations deliver these. 

But in reality, there is no real simple comparison of one RIO strategy being better than the other.   

It could be worth considering both options before ruling one out over the other. Who’s not to say you can’t do both – rent out your property with the intention of gaining capital in the next few years. 

Our thoughts 

When considering entering the space of property investment, it is important to compare both capital growth and rental yield. You should carefully consider what your goals are. This is because which facet of income you want to focus on is dependent on what your goals are and where you are on your journey. 

There is a risk with property investment in the same way that there is a risk with any investment. You have a better chance of succeeding in the market if you have all of the information, so make sure you keep doing your own extensive research! 

While it is clearly important for landlords to make money, it is also important now more than ever in a post-pandemic world to charge fair and affordable rent for your property. 

If you have to charge high and unaffordable costs for either strategy to make your investment worthwhile, it probably isn’t the best choice to invest in that particular property. 

Related Articles

The correct advice can be integral in making the right choices in property investment. Feel free to reach out to us here at Keey, where we have experts ready to answer all of your questions! 

Discover how much your property could earn you

    Bedroom