One of the basics of buy-to-let is ensuring your investment is what tenants want. Director of Drewery's Property Services PAUL LONG explains what to look for in a property.
Location is just as important as the property and price paid for it when considering purchasing a property to let.
When considering the location a prospective landlord should first speak to their lettings agency who will be able to advise them on the main type of people looking to rent in the area and the type of property in demand.
Our Sidcup office, for example, attracts a large number of tenants looking to benefit from the range of services on offer including schools, shops, rail links and easy access to motorways.
A large proportion of tenants looking to rent are young professional couples choosing to rent first before purchasing. Larger properties tend to rent to families who have moved due to a job relocation and want to get to know the area before committing to a purchase.
It is a good idea to view each prospect as if you were the tenant considering the property to rent.
Most tenants, for example, will now give greater consideration to safety.
A landlord should avoid purchasing any property in run down areas or places situated next to loud facilities such as pubs and nightclubs. A tenant might also consider parking, types of heating and how modern both the bathroom and kitchen facilities are.
The type and age of a property tends to be unimportant as long as it is in good condition and the layout is not unusual or too small.
Most tenants who contact our company are looking for good quality one or two-bedroom flats in well-maintained blocks. Larger flats from our experience often produce a lower rate of return and are often more difficult to let.
A prospective landlord should also give consideration to the exterior appearance of the block and quality and upkeep of communal areas.
Research should also be made into the cost of maintenance charged by the freeholder or managing agent and details of any large maintenance projects to the block.
Small modern properties on modern developments are also an ideal investment but might have to mature before greater returns are achieved.
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