If you’re thinking about making a property investment, here’s our 3 top tips to help you boost your profit return.
Before you start scouring the market for the perfect Buy-To-Let to purchase, have a think about how much income you want to see each month, and how much you’ll have to spend each month as a Landlord.
Get your calculator out and juggle a few figures around.
As well as the deposit, mortgage and stamp duty costs, think about what else you might have to spend on. From refurb costs, to an emergency fund to fix anything within the property that you’re responsible for (if the boiler breaks, for example), to ongoing maintenance costs and agency fees.
Thinking about how much you want to see coming in, and getting a rough idea for how much you’ll see going out, will give you a clearer idea of how much rent you want to charge.
If you know that your aim is to charge around £1,200 a month, for example, you can now do some research to see what type of properties are charging that much, right now. See what the property size is, what location it’s in, what style the property is and what kind of shape it’s in. This will help guide you with the property you should be looking for, yourself.
Now you know how much you want to charge each month, have a think about extending the location radius for your search. Whilst buying a property in your local area might seem like it makes the most sense, you might find that there’s another area that is more suitable for your financial investment. Whether it’s getting more for your money up North, or picking a city where rental prices are generally quite high- like London or the commuter belt, location could have a huge impact on your profitability.
If you’re worried about renting out a property that’s far away from your home, we understand your concerns here. It’s hard not to picture yourself having to drop everything last minute and jump in the car for a couple of hours, just to check out a leak your panicked tenants have called you about. That’s where Property Management comes in. We can manage your Property and Tenants, on your behalf. From pre-tenancy paperwork, to maintenance and dealing with urgent issues, rest easy knowing everything is handled. If you’re keen to find out more, get in touch with our team by emailing us on firstname.lastname@example.org.
The last 12 months has had a huge impact on the rental market. Having spent so much time at home and with Working From Home culture becoming the norm (something that’s expected to stay long after COVID is over), tenant’s priorities have shifted. People no longer need to consider their daily commute, which opens up any location limitations they might have otherwise faced. People are looking for more space, a garden, and in general- are wanting to find somewhere that really looks and feels like their own home.
Whilst some tenants previously might have been willing to put up with a shoddy paint job and old, worn furnishings, if it meant they could be a stones throw from the tube or train station, this is no longer the case. To really appeal to tenants, think about how aesthetically appealing the property you’re buying is. Is it somewhere they’ll fall in love and be proud to call home? This is the key to finding long-term tenants.
Good luck with your property search and investment! For any more advice and guidance, get in touch with the team- we’re here and ready to help.