Things You Should Look For When Buying A Rental Property
3 minute read
If you are looking to invest in property then you need to make sure that you take some time to plan what you are looking for in a rental property. Buying a property as an investment rather than a home means a different way of thinking, emotional attachment needs to be left at the door and you need to look at each property you view from a money making perspective. The team at JustBuytoLet have been working with landlords for over 25 years so we understand that a certain amount of research needs to be carried out to ensure that your investment property choice is a profitable one.
When looking for an investment property you will need to consider the following before you arrange your first viewing or go to your first auction:
Local rental market
The purchase of a rental property should be viewed from more of a business perspective, to be successful as a landlord you need to know your market and your competition. Speak to local letting agents and get their take on the current market for the kinds of property you are looking for. Scope out other rental properties in the areas you are looking to buy in and take note of the rental prices and the conditions of the properties on offer. Where are most of the rental properties located in the area, where do homes come up for rent most often, and where are they snapped up quickly?
The vision of your ideal tenants will dictate the type of property you are looking for and where that property is located. If you are looking for affluent professionals as tenants then the properties you consider will be very different to the ones you would look at if you wanted somewhere that appeals to families. Which demographic groups will be the most reliable, want to rent long term (if that’s what you are looking for), and give you the most return on your investment?
Where the property is based is important, is it a good area, and is it located in a convenient place for local amenities. Depending on the demographic you are looking to target, the properties you look at and the location they are situated in will need to appeal to your target tenants. Young professionals will probably want to be closer to coffee shops, bars, and restaurants, whereas families will want to be closer to schools, parks, and other family homes.
If you are looking to rent out the property as soon as you get the keys then you will want to pick somewhere that’s in great condition, maybe a property being sold by a former landlord. However, if you are willing to wait a few months you could look for a project.
Before you start your hunt for an investment property make sure you have a clear idea about what you will and will not accept in a property. Investment in property is one of the safest forms of investment, but it’s something that’s going to need to work for you over the long term, carrying out your research and setting your objectives before you begin your search is crucial.
Are you a seasoned landlord? We would love to hear your hints and tips for finding the perfect investment property.