The transition between years provides landlords with an invaluable opportunity to analyse portfolio performance, identify improvement areas, and refine strategies for the year ahead.

Systematic review of your 2025 rental data reveals patterns, problems, and opportunities that inform smarter decisions throughout 2026.

Analyse your rental yield performance

Calculate actual rental yields for each property by dividing annual rental income by property value, then multiplying by 100. Compare these figures against your expectations and local market averages. Properties underperforming their potential require investigation and are rents below market rates? Do high void periods or maintenance costs erode returns?

Gross yield provides useful comparison, but net yield, accounting for all costs including maintenance, insurance, letting fees, and mortgage interest, reveals true profitability. Properties showing strong gross yields, but weak net yields often suffer from high maintenance costs or inefficient financing that require addressing.

Review how yields changed throughout 2025. Did they improve, decline, or remain stable? Understanding trends helps you project realistic expectations for 2026 and identify properties requiring strategic intervention.

Evaluate void periods and tenant turnover

Void periods directly impact profitability. Calculate total days each property sat empty during 2025 and multiply by daily rental value to see exactly what vacancies cost. Even short void periods between tenancies accumulate to significant lost income across a portfolio.

High turnover rates indicate potential problems. Frequent tenant changes might suggest rent levels exceeding what the property realistically justifies, property condition issues deterring lease renewals, or poor tenant selection placing unsuitable occupants who don't stay long-term.

Properties with stable, long-term tenants typically deliver better returns through reduced void periods, lower turnover costs, and decreased wear from moves. If certain properties consistently experience high turnover, investigate underlying causes and address them systematically.

Review maintenance and repair costs

Categorise all maintenance expenses by property and type, emergency repairs, routine maintenance, safety compliance, improvements, and wear-and-tear replacement. This reveals which properties consume disproportionate resources and whether spending is reactive or planned.

Properties requiring frequent emergency repairs often suffer from deferred maintenance or fundamental issues needing comprehensive attention. While major works involve significant upfront costs, they typically prove more economical than endless small repairs and create more attractive, easier-to-let properties.

Compare maintenance costs against rental income. Properties where maintenance consistently exceeds 15-20% of rental income might be fundamentally uneconomic unless you can reduce costs through preventative maintenance or increase rents to improve ratios.

Assess rent positioning against market rates

Research current market rents for comparable properties in your areas. Are your rents competitive, below market, or premium-priced? Properties let significantly below market rates represent immediate opportunities to improve returns through appropriate increases.

However, balance rent optimisation against tenant retention. Long-term, reliable tenants paying slightly below absolute maximum market rates often deliver better returns than constant turnover chasing highest possible rents. Calculate whether rent increases that might trigger tenant departure improve profitability once you factor in void periods and turnover costs.

For properties approaching lease renewals in early 2026, plan rent review conversations now. Research comparable properties, understand local demand dynamics, and prepare justifications for any proposed increases based on market conditions and property improvements you've made.

Examine financing efficiency

Review mortgage rates across your portfolio. Properties on standard variable rates or expired fixed-term deals likely pay more than necessary. Remortgaging to competitive fixed rates could save thousands annually, providing payment certainty.

Calculate whether refinancing costs, arrangement fees, legal fees, potential early repayment charges, are justified by interest savings over your intended holding period.

Consider whether alternative financing structures might improve tax efficiency. Consult a property tax specialist about whether portfolio restructuring, company ownership, or other arrangements might optimise your position under current taxation rules.

Review expense claims and tax efficiency

Ensure you've claimed all legitimate expenses, property maintenance, letting fees, insurance, professional fees, mortgage interest (within current allowances), travel costs for property management, and accountancy fees all reduce tax liability.

Check whether you're maximising available reliefs and allowances. Keeping meticulous records throughout 2026 ensures you don't miss claimable expenses that reduce your tax burden.

Set strategic goals for 2026

Use insights from your analysis to establish specific, measurable goals. These might include reducing average void periods by specific percentages, bringing underperforming properties' yields up to portfolio averages, completing planned improvements that justify rent increases, or refinancing expensive mortgages.

Contact us for professional analysis and strategic planning support