When it comes to property investment, it is important to do your research. Simply purchasing a property, with no thought into costs, location and rental yield, could end in a disaster.
To get you started, Just Landlords, the Landlord Insurance provider (www.justlandlords.co.uk/landlordinsurance) has put together some suggestions on the types of lets you will want to consider.
Looking at private lets in city areas, you may want to target professional couples and other city workers. Parking may be less of a concern for such tenants, if they are city dwellers, but it is worth looking into properties that come with allocated parking spaces.
You could also consider looking at properties with more bedrooms, and go down the Houses in Multiple Occupation (HMO) route, but remember that you may need to apply for a licence.
Another HMO option is a student let. Pinpoint university cities and take into account how heavily attended the universities are. It is likely that you will have a high yearly turnover of tenants, as they tend to go home for the summer and move somewhere else for the next year. The more students enrolled at the university, the easier it will be to swiftly move on to the next tenancy. This will also allow you to be pickier, if you are keen to find reliable and trustworthy tenants.
If you decide to have your portfolio managed by a letting agent, this will also require some research into which will provide the best support for student lets. You will want someone who knows that section of the market and how to target that audience. From ensuring that tenant deposits are correctly put into a registered protection scheme, to regular maintenance checks, you will want to know that your investment is in professional hands.
Manchester is one city with a high student population; the University of Manchester and Manchester Metropolitan University attract students from all over. Then there’s the University of London, which is made up of 18 institutions, resulting in it being the largest university by number of students in the United Kingdom.
If you are in the financial situation to do so, you may be considering luxury property investment. Areas around London will be attractive to visitors from all over the world. From celebrities looking to keep their location options open, to those needing a temporary home, due to being in the country on business, renting can be a popular choice over homeownership.
Greater London is an example of one area that appeals to those looking for a high-end, yet convenient location. Those looking for a quieter location prefer Highgate, and then there’s Kensington, which has attracted the likes of Victoria and David Beckham and Kylie Minogue.
Some landlords prefer to personally manage their own portfolios, as a way to cut down on the costs of property investment. This can involve a lot more work, as you will have to organise credit checks, reference checks, property inspections and more. If you have the time, and are willing to commit, then this may work in your favour and provide a good income.
But remember, the Tenant Fees Bill is due to bring about changes this year to the fees that letting agents can charge to tenants and landlords. If the aims of this bill unfold as planned, this may ease up the financial burden of using a letting agent.
Do Your Research
Thorough research is key, if you are going to invest a lot of time and money into making property a lucrative investment.
Once you’ve purchased your property and decided on whether to enlist the assistance of a letting agent, you will then need to decide on property insurance, to make sure your investment is protected. As a let, you will need Landlord Insurance, but don’t forget that in between tenancies it can be wise to look into Unoccupied Property Insurance, to ensure that is has the right cover during void periods.