Choosing the right property is crucial for buy-to-let investors and there are number of steps potential landlords can take to ensure their investment will generate the strong revenue and remain attractive to tenants.
The desire of tenants can vary substantially, with some looking for affordable rents, while others are hoping to secure a property that will provide a long-term home.
It is crucial for buy-to-let landlords to consider what their budget is, who are their target tenants and plans for the future when selecting a property to rent out.
A property will needs to appeal to a demographic if it is to successfully attract tenants. Certain groups will be drawn to homes in particular areas - for instance, students will look for properties close to university campuses, while somewhere within working distance of a hospital is likely to appeal to a mix of doctors, nurses and other medical professionals.
Working couples will want somewhere with strong transport links so they can travel to work easily, while those with families will be aware of catachment areas of schools, as well as wanting access to green spaces and parks.
All of these groups present different advantages and disadvantages for landlords.
For example, students tend to head home for summer so properties will sit empty - this could lead to potential building issues or they could be targeted by burglars, as well as a potential loss of revenue. So if landlords do want to rent to students they may want to pick a location in a low crime area and take steps to ensure tenants are aware of their obligations to ensure a property is well looked after throughout the whole tenancy.
Type of property is also important; professionals will be more likely to be attracted to modern small low-maintenance apartments, while families will prefer houses with larger gardens.
To help with finding the ideal rental property it is crucial to do extensive research. Taking a walk around areas and using the internet will help identify the target audience of properties. It is also useful to talk directly to a letting agency to get their advice on potential buy-to-let investment options in the region - they are usually more than happy to help with any queries regarding location.
Importance of budget
It is important to think about your ongoing budget when choosing a location. A larger property may need significant upkeep and money must be available to fix emergency problems such as a non-working boiler or a leaking roof.