Rental property purchase is at all time high given how much it costs to rent a house these days. That’s bad news if you’re a tenant, but not if you’re a landlord.
Rental properties are bringing in huge amounts of money every month; maybe it’s time for you to get in on the action? Anybody that is in a position where they could potentially buy a second property should consider rental property purchase. It’s a big risk to take so you need to make sure that you’re doing it right. In a perfect world, it would be a case of simply buying a house, putting it on the rental market and watching the tenants flock in.
The reality is that, unless you pick the right place and market it properly, you won’t get anywhere. If you are thinking about investing in a second property, here are a few helpful tips to make sure that you don’t end up losing money.
What Kind Of Property?
The first thing to consider in rental property purchase is the type of housing you should purchase. One of the more profitable options is student housing. The amount of rent that you can charge is a lot higher than a normal property. It does come with its problems though. The upkeep is going to be a lot more intense as damage to the house will be a lot more common. You’ll need to weigh up the extra profit against the time you will need to put into the maintenance and decide whether it’s right for you.
If student housing isn’t the right fit for you, there are plenty of other options. Buying a flat or apartment is often better than a house if you are looking at city center locations. Houses in prime locations tend to be unaffordable for a lot of people. In a share house or apartment, you’re more likely to get younger tenants that move on fairly quickly. Landlords looking for longer term tenants will probably be better off buying a house. Have a look at real estate listings to see what is available in your chosen area and get a better idea of what tenants are after.
One of the main criteria that tenants will consider is the location of your property. It doesn’t matter how nice the house is, nobody is going to rent it if it’s an hour away from the nearest supermarket. Finding a good location with a low availability rental properties will ensure that your new property gets snapped up as quickly as possible.
In the last few years, schools have become an even bigger factor in rental decisions. If you’re renting in an area that doesn’t attract many families, you don’t need to worry too much. But any landlords that are looking at properties in family areas, finding a property near a good school will help a lot.
Decorate It Well
When potential tenants look at a property, they need to be able to imagine themselves living there. When you’re decorating it, remember that you aren’t doing it for yourself. Your tastes aren’t going to be the same as everybody else’s so make sure you don’t put people off with decor that they won’t like. Try using fairly neutral colors, but make sure it looks homely. They can always decorate it themselves after they’ve moved in.