Renting out properties is a smart, effective business plan. Not only can you earn money as you go, but you will also increase your overall wealth in the long term by owning multiple properties in areas that are, assumably, improving as time goes on. That being said, there are a lot of costs and struggles that landlords need to deal with. Owning and renting out a property is the bare minimum. If you want quality tenants and a viable, long-term investment, then you’ll need to invest time and money into improving the properties you buy. Think in terms of durability and longevity.
Once you add those two factors to your properties and then knock down prices to pick the best-behaved tenant that will cover your costs, you will have a realistic business model. It can be tempting in today’s market to go for the route that costs you the least and earns you the most, but this can backfire spectacularly. If you don’t invest in your property, chances are you’ll have to deal with expensive fixes and renovations in the future. Similarly, going for the person who can pay the most isn’t always the best approach.
If your tenants resent the amount they’re paying for the quality they’re getting, you can almost guarantee they are going to be as difficult as possible.
That’s why balance is so important. Finding the property that fetches the best return both in the short-term and long-term can be difficult, but with this guide, you’ll learn how to choose the best rental investments, improve them, and get more out of your rental property from there.
Where to Buy an Investment Property?
You can buy an investment property for as cheap as possible and then sell for as much as possible. While you can absolutely rent out a property anywhere, your best bet is to stick to major cities. It won’t be worthwhile to buy a new build and then rent it out, more often than not. Instead, you’ll want to find the fixer-upper projects that can, at the very least, make you a profit if you were to flip them.
Not only does this help any housing crises in the area (since those looking for affordable housing won’t be able to afford to flip a property in most cases), but it’s also how you can get immediate returns.
Big cities like London have people doing this all the time, so if you want the most bang for your money, you’ll want to turn your sites on an up-and-coming area like Bristol. Investing in a property in Bristol means getting in on the property ladder in a growing economic and cultural hub. Aim to buy a property that needs work, do it up, and start renting it out. If you ever need to, the fact that you flipped the property will mean great returns and minimal loss.
How to Make Your Property Last
Always choose the most durable design options. Instead of opting for a cheap matte paint, choose the stain-resistant option. Instead of going for cheap flooring that is likely to buckle, invest properly. This will minimize the need for maintenance and repairs and help you save more in the long term.
Other ways to make it last are to make it as functional as possible. Add more storage options than you think your tenants will need, and they’ll be able to put everything away properly instead of unsafely cluttering your property.
Get Your Property Deep Cleaned
A great way to keep your property in good order is to clean it between tenants deep or see if your long-term tenants are happy to accommodate workers while they clean out things like your radiators or steam-clean carpets. If you have a small portfolio, you can do most of this work and rent the equipment necessary to pull it off.
Other services you’ll want to include in the rent are gardening services. Unless your tenants are green thumbs, chances are any gardening efforts are going to fall by the wayside. By having someone (even yourself) come and trim the lawn and make sure your plants are in good condition, you can add to the overall appeal of your property and make it a top choice when it comes to leasing it out again.
Rent it Out for the Short Term Between Lets
If there’s ever a lull between tenants – which is unlikely but could happen – don’t be afraid to rent it out to short-term tenants. You can even rent furniture if the property usually comes unfurnished, which will have the double benefit of dressing it up to show and also giving short-term guests a place to stay comfortably.
