What is buy-to-let?
Let’s take this back to basics. Buy-to-let is one of the simplest property strategies you can get. The more adventurous you get with your strategy, the more work it’s going to involve.
So, in the simplest terms, buy-to-let is buying a property and renting it out.
Return on investment
Rental yield is a measure of the ROI (return on investment) you could make from a buy-to-let by comparing the rental income against the value of the property. As a rough guide, if the property is likely to generate a yield of 5% or higher, it’s a good bet for buy-to-let. Of course, it's worth speaking to one of our agents to get a good idea of yields in your area.
What properties make a good investment?
Choosing between a flat and a house can influence the type of tenant you’ll get and your returns. Think about the benefits of each before making a choice. New build apartments for example, can be easier and less costly to maintain, and they might have a broader appeal to tenants than period properties.
The location of the property you go for is key to attracting the right kind of tenant. Account for the distance to schools, supermarkets and shops, public transport links, and even the local GP, as being closer to these amenities is likely to raise your property’s appeal. If you want to let it out to students, being near their university is important to consider.
Fittings and fixtures
To reduce unnecessary expenditures, you should look for a property with all the basics up to code, such as kitchen, bathroom, gas, electricity, and water supplies – otherwise this could mean a lot of spending before you can even get tenants in.
The desirability for outdoor space has increased drastically over recent years. Having an outdoor area, whether it’s a terrace or a garden, can be a big plus for tenants and can increase the rental value of your property.
More and more people are looking for greener homes – taking steps to ensure the property you purchase is eco-friendly, or at least has the potential to be, could be a great selling factor when it comes to attracting tenants, especially if it helps reduce their energy bills.
It might not always be a priority, but a property with good parking is also more likely to attract interest from potential tenants.