Renters currently make up around 19% of the housing market in 2022. If you’re looking to invest and bring in monthly income from your assets, you might consider investing in a buy-to-let property.
Buy-to-let properties can make an excellent choice, allowing you to access a steady annual income. Choosing the wrong property, however, can incur losses if the property sits empty for long periods of time, and you are left paying the bills.
To maximise the return on your buy-to-let investment, you must choose the right buy-to-let property. So, what makes a property an ideal buy-to-let property? Keep reading for the ultimate checklist to help you select a buy-to-let property that will bring you the best returns.
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Your property must appeal to prospective tenants to make the most out of your investment. Here are some of the steps you must consider to choose the right buy-to-let property. Keep these in mind when choosing your buy-to-let property.
Property auctions can help you find properties with vast potential for lower prices. To ensure your success at a property auction, you should:
● Perform research on the properties before the auction - if you have a shortlist of properties prepared before the auction, you will know what you’re bidding on. You will have a rough idea of what the property is actually worth, so you do not exceed this value with your bids.
● Learn about bidding techniques and etiquette - you need to be aware of the rules and best strategies for bidding before you engage in a property auction. With the wrong approach, you could lose out on properties or overpay.
● Be aware of the risks - often, when buyers win a property at an auction, they are unaware of stipulations in the legal packet that could cost them money over time. So, be sure to perform thorough research into the properties you bid on and practice caution, as property auctions do not come without risks.
Using property auctions can help you find a buy-to-let property for a more competitive price than on the market, and it’s essential to be aware of all of your options before searching for your next property investment.
Choosing the location for your buy-to-let property is essential. If you select a property with a high crime rate and poor-quality schools, you could be left vacant for long periods. You want a property in a desirable location.
● Proximity to good schools, shops, parks, and restaurants.
● Lower crime rates.
● A vibrant culture and community.
● Easy commutes to work and a wide range of transport options.
Up-and-coming areas that are gentrified or regenerated make an excellent investment. The site will become increasingly sought-after over the years, and you will be able to make more money from your investment.
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You need to think about what the average renter would like from a property, rather than what you would want. If you fail to put yourself in the shoes of an interested tenant, you may make choices regarding the property that don’t appeal to renters. For instance, here are some things that would generally appeal to renters:
● Garden space - renters frequently have young children and pets, which makes garden space a necessity.
● Office space - if you choose a property without office space, renters may lose interest, particularly with the steady rise of hybrid and remote working.
● Luxury installations - before you install a hot tub in the garden to add value to the property, think about your renter. Do they want to pay for the heating and maintenance of this installation? Likely not.
There are two main ways you can profit from your buy-to-let property investment. Firstly, you can benefit as the home’s value increases over the years. Secondly, you can benefit from the rent you receive from your tenants.
Understanding the rental yield you can expect from your buy-to-let property is essential. Your property agent will help you know your expected rental yields, and they will be able to give you insight into the top properties on the market. Let your agent know you’re looking for buy-to-let property.
Buying a property in need of renovation or repairs is an excellent way to get the best return on your investment. You can buy the property for a lower price, and you will be able to invest in renovations that will add to its value. You might even consider looking into the planning permissions available for the property and investing in a home extension.
If you wish to invest in a renovation or extension for the property, it’s best to contact a builder and look into the planning permissions. If you cannot make any feasible renovations and extensions on the property once you have invested, you may have to sell the property and suffer some losses. So, make sure your plans for the property are feasible for investing.
If you plan to invest in a multi-family residence, you must ensure that you equip the building with the necessary commercial security technology installations.
Access Control
Touchless access control is a desirable feature to potential tenants. You will secure the building from intruders, and touchless cloud-based technology will increase the convenience of their daily life. Touchless access control uses mobile credentials as digital access keys, so your tenants won’t worry about losing their keys. If tenants can’t get into the building, they can contact you, and you can unlock the doors remotely using a mobile application to ensure they get home safely. This technology is convenient for both tenants and landlords.
Video Surveillance
Video surveillance systems are necessary to deter crime and provide evidence once a crime has occurred. When integrating your security cameras with your multi-tenant intercom system, your tenants can verify the identity of their visitors for increased safety, and access information will be visible alongside access information on one user-friendly interface.
You will be better equipped to select the right buy-to-let property with all of this information. You will make the best return on your investment with properties set to increase in value, so it’s best to opt for properties in up-and-coming areas or properties in need of renovations. Suppose you’re opting for a multi-family property. In that case, you should ensure the building has a convenient, sophisticated, and modern commercial building security system to increase tenant satisfaction and encourage tenant retention.
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