Buying a property with the intention of letting it out can be a profitable and exciting new enterprise. Before committing to such a venture, it’s essential to do your research beforehand to ensure that you are able to achieve a profitable let. Here, LetBritain offers some tips and guidance to ensure that you can do just that.
- What are your short term and long term goals?
Are you looking to make a little extra cash or are you intending to become a full time landlord with a portfolio of properties? Knowing exactly what your objectives are when it comes to the experience will make a huge difference.
- What demographic do you want to focus on?
Do you think the student demographic is more lucrative and dependable? Are you interested in housing short or longer stays? The market is littered with a tremendous variety of potential clients that may impact the properties you choose to buy and how you market them.
- What area are you focusing on?
Are you choosing to focus on one property in one area, a multitude of properties in one area or an assortment of properties across a wide base? Once you know your area, you can do your research. What does the area have to offer? Why might it appeal to your target demographic? Do the properties that you’re selecting have much to offer? For example, for students renting properties, is your property located nearby the campus or a train station?
Think about how much you can afford to put aside for properties. You’ll need to have enough money to cover you for periods of time when your property is vacant or for any expenses/fixtures that may incur costs.
- Does your property sell itself?
Think about ways that your property can remain an enduring, consistent sell. If you are housing students, does your property have internet and storage space? If you are housing a family, is there a communal space and enough bedrooms? Is the house safe and well-maintained? Think about cost effective ways to improve the property that work long term.
Ask local letting agencies what kind of properties are successful and in high demand. What are tenants asking for? What do they want? You really want properties that are well situated and close by to essential travel routes and necessities. You can then visit your desired property to see what you think of it.
No-one can rent out your property if they don’t know that you exist. Market your property online and let the word spread far and wide. Trusting a local letting agent may seem like the first choice but it can be an expensive process as they often overcharge – many modern landlords are using self-service letting agencies to keep costs down and control the tenancy themselves.