This is a very common question asked of Letting Agents and the answer is a complex one as there are many factors to consider.
So, here are some tips for landlords renting properties:
Short or Long Term?
It is important to decide on your investment goal. Are you looking for a short or long term return? Is it capital growth that is more important or a regular monthly rental income?
What is your budget?
Your budget will determine whether you should be looking at freehold houses or leasehold flats.
Choosing the right location
Opting for a property that is in a high demand rental area will lead to letting success. Look at large employers in the area including hospitals and universities and choose properties close to their location in order to achieve a strong tenant pool. Do your research and learn the popular streets within those areas too.
Choosing the right size property
Bare in mind that a one bedroom flat is likely to be a short-term let by someone who needs a property straight away. A house on the other hand is more likely to provide a more long term arrangement, families and couples are more likely to settle for longer.
It is important when choosing a property to ask yourself “could I live here”, “would my son/daughter be happy living here”. If the answer is no then a tenant isn’t likely to want to live there either. Whilst it is important not to get emotionally attached to a property that is purchased to let it is important that a little TLC is involved on the interior of the property to make it attractive to prospective tenants.
When looking at apartments
It is the common areas of an apartment block that give the first impression to prospective tenants. Take a good look at the common areas and make sure they are well maintained and clean and tidy. Learn who the management company are for the block too and make sure it is a reputable firm. You will be paying maintenance fees for their services.
Don’t forget the outside spaces
Good outside spaces improve the level of the rent you can charge, the quality of tenant you attract and the length of the lease they will sign for. Look for on or off-road parking, balconies and well kept gardens.
Working the numbers
Make sure that you allow for some maintenance costs in your cash flow and chat to an advisor about fixing your mortgage rate to steady the costs and secure your monthly rental return.
What is the ideal property?
Brian Lehane of Belvoir Lettings, Southampton advises that the best buy to let property purchase for renting in Southampton would be a 2 bedroomed terraced house with an upstairs bathroom. This style of property with a nice garden and off road parking would command a monthly rental of £900 pcm. That said these properties are in high demand and so are hard to get your hands on.
Have you found these tips for landlord’s renting property helpful? Is there a top tip you would like to share? Please tell us in the comments.