Do you want to become a successful Landlord?
A guest blog from the Right Surveyors
If you are contemplating becoming a landlord or a property magnate, now would be a good time to build up a portfolio. Property prices are all over the place at the moment, which means there are bargains to be had.
Surveyors and valuers spend much of their time assessing investment property and we’ve picked up a few bits of information along the way which may be useful to our readers.
When looking for an investment, you need to take into account a number of factors to help you succeed. Things like finding a great location which people really want. Properties close to train stations and the underground are often worth more money, as commuters in the capital often don’t own cars. With new stations planned in certain areas, one can anticipate price rises in the future when those transport links are completed. Get in early and you could enjoy a substantial uplift.
The closer you are to the city centre, the more money you will receive in rent. According to recent figures, in Kensington:
– a one bedroom property can fetch up to £478 a week
– two bedroom – £1,309 pw
– three bedroom – £1,584 pw
– larger properties – £1,912 pw.
Those figures may sound astronomically high, but bear in mind the purchase price you’ll need to shell out. Investors should always think in terms of yield, and if a rent of £1,500 pw amounts to just 5% yield because the purchase price is £1.56m, then you should be looking elsewhere. That is unless you’re sure that your London property is going to climb substantially in value.
Outside of London, where capital growth is king, you should place considerable weight on that yield – that is the amount of rent per year against the price you pay for the property. In some areas of Manchester, Nottingham and Newcastle for example, you might receive up to 12%, which is a substantial return. Compare that to what you receive from your bank account and investing in property suddenly becomes a very attractive prospect.
A good local estate agent will know exactly what type of properties sell in their area, how fast and for what price. You might be surprised at what’s in demand and inside knowledge can help guide your investment.
“Buy-to-let is a popular investment type, but you should carefully consider what your end goals are before proceeding. Are you looking for a three year investment and sale at the end? Or are you looking for a safe place for your money, with the benefit of a strong, stable yield? These factors will influence not only the location and type of property, but also the tenant you choose, so getting a plan in place early is crucial.”
– Chris Newman FRICS | MD of the Right Surveyors in Manchester
When it comes to letting the property, you’ll need a good expert on your side to help with choosing the right tenants and pitching the rent at the best possible level. Building a rapport early with your agent can be crucial to becoming a successful landlord.
Preparing the property
When you rent out a home, it needs to be in habitable condition and meet regulations and certain standards. You will need to assess the property before buying it to see what work will need to be carried out. A surveyor can visit the property and write a report stating what kind of work needs to be carried out before it will be suitable for tenants, they can also consult with you on maximising the property’s potential value.
About the author:
The Right Surveyors are specialists in advising investors on matters of value. Our registered valuers across the country provide pre-purchase reports and independent property valuations every day, to commercial and domestic clients alike. If you’re considering becoming a property investor, don’t hesitate to drop us an email, give us a call or use the chat system on www.rightsurveyors.co.uk.
You can read more property news, stories, advice and tips from the Right Surveyors at www.rightsurveyors.co.uk.