Tue 27 Sep 2022
Ian Woodhouse-Smith, Lettings Manager
Location is king
To get the most out of your investment property, choose one in a desirable location. If more people want to live in the area, you’ll have a larger pool of tenants to choose from – and receive higher rents in return.
Good locations boast a range of amenities, easy access to transport links, low crime rate, good schools and proximity to employment hubs. Don’t forget to consider taxes for the area – high council tax rates can put renters off.
You should also check if there’s a thriving rental market in the area. If there’s no demand for rental properties, it’s not a strong investment.
The size and nature of your rental property are key factors in its appeal. In the UK, two-bed properties currently offer the best rental yield for landlords, with four and five-bedroom homes lagging behind. This means that a one-bedroom flat would give you a better rental yield than a five-bedroom house, so bigger isn’t always better.
However, the size of the property itself also matters. After Covid lockdowns and the continuing prevalence of working from home, renters are placing more emphasis on space than ever before. Square-footage both inside and outside of the property matters, so choosing a home with a large living space or sizable garden will ensure your buy-to-let stands out from the crowd.
It goes without saying that the most popular rental properties are clean, modern and well-kept. When choosing a rental property, you can opt for one already in good condition or be prepared to put some work in to bring it up to standard.
Often, the best investment properties are those in need of a little TLC. Some fresh paint, modern flooring and a new kitchen can make all the difference – and you can increase the value of your home by more than you spent.
Look out for issues that run deeper than the surface. If a property has major structural issues, such as damp, subsidence or a bowed roof, you’ll need to spend a lot to make it safe to inhabit.
Value for money
To ensure your property earns great returns in the future, you should buy in an area where property prices are rising.
You should also make sure you’re only paying for what the property is worth. If you pay more than the property’s value, your return-on-investment will be lower further down the line.
A property survey will help you identify an overpriced home. Most mortgage lenders will carry these out on your behalf, but if you’re a cash buyer, you should arrange your own survey before exchanging contracts.Alresford is among the most desirable places to live in the UK, making it a great area to invest in a buy-to-let. If you need help finding the perfect rental property in our part of Hampshire, contact the Hellards team today.