How to choose the correct investment property
Properties are still commanding good rents especially in the areas that Robert Oulsnam & Company represent. In the UK, more than 11 million people reside in rented accommodation and this figure is set to rise in the next 5 years.
With growing demand for rented accommodation, it is likely that property rental values will hold up in the long term.
As a landlord, prior to renting out your property for the first time you will need to consider who your target market is. This will largely depend on the type of property you have, e.g. is it a 4-bed detached house in the suburbs or a single bed flat in the city? The location of your property will largely dictate your target market. A terraced house in the University area could be more suited to students in a HMO arrangement rather than say a young professional family with children.
Here’s just some of the tenant types that you may consider before buying your investment property.
Students want to live close to their place of study whether this be a University or College. Ideally, the property should be within walking distance of their institute of higher education as a lot of students may not have cars. Alternatively, the property should have good commuter links to the college. Being in close proximity to pubs and shops helps too. A student property would serve well as a HMO.
Similar to students, professionals want to live within commuting distance of their workplace. Being within walking distance is less important than having access to good public transport. In London, the property’s proximity to a tube station can make a huge difference to the appeal of your property. Again, a HMO arrangement would be well suited to professionals.
Young couples without children have similar requirements to professionals. They prefer good access to transport and access to a vibrant high street. A property with a low maintenance garden does help, however a green garden that could become overgrown very quickly could be a turn off.
Families require a location that is accessible to a good school. The property will have an increased appeal if it has a well-kept garden.
Having a vibrant high street or large supermarket nearby helps too. Families will prefer the quieter suburbs rather than a property slap bang in the middle of the high street so again this should be a consideration for you when buying your investment property.