Becoming a landlord is a potentially lucrative venture, but not always a straightforward one. It takes lots of planning, lots of time and lots of investment before it will bear fruit. If you are prepared to devote all of that, then this guide is for you. Here we break down the most important things to look out for when scouting out an investment property and finding dependable tenants.
Choosing where to buy
Let’s start with the obvious: location. Regardless of how nice a house is, if it is in the wrong area you may not be able to attract the right type of tenant at the right price. For example, buy a flat next door to a university and prepare to be inundated with student tenants. Buy a house outside of commuting distance from the nearest town centre, and you may have trouble finding young professionals with steady jobs.
A beautiful house will not be so alluring if the crime statistics in the surrounding area are through the roof. Before you commit to a property, be sure to check the crime stats. You should be able to find these online, in the local police station or at the library.
Settled tenants are generally reliable tenants, so a young family of professionals is often the ideal renter, particularly for a house. Check the local schools for quality and proximity. If you have a few good educational options nearby, it can add massively to the value of your property and make for a better tenant demographic.
Choosing your rental price
The price you charge your tenants will have to be high enough to cover your costs, plus offer you a profit, while being reasonable enough to attract a decent number of prospective tenants. Look into the average rent in your local area and try to stick close to that figure. If it’s still not enough for you to make decent money, than you are considering the wrong property.
Once your property is up and running, it’s time to start organising viewings with potential tenants. To be sure you attract the right sort of applicant, it is highly advisable you utilise the service of an experienced agent such as Thorgills. They will have plenty of experience in the field and so can be relied upon only to put forward the right sort of tenants.
Buying and renting your first property as a landlord can be a daunting task, and doing it right will take plenty of hard work. Yet, if you follow this advice, you can make your chances of success that much higher.