| • |
Location of the
property is probably the most important factor
in maximising rental income and minimising void
periods. It is more important than type of property,
condition or maybe even price. An investment property
can be improved with furnishings or décor,
completely renovated or even knocked down, but
cannot be moved from a poor location! |
| • |
If your property
is mortgaged, be sure to obtain the lender's approval
to rent out –and take advice on the form and level
of insurance required for a rental property from
a specialist (your agent should be able to assist
with this). |
| • |
Generally you'll
get better returns from investing in smaller rather
than larger flats and houses. As a rule most young
professional tenants are looking for 2 bedrooms
or less. Three bedrooms will attract families.
Larger properties will usually take longer to rent
out. |
| • |
Present your property
well to attract the best possible rental. The right
colours in the right places, scrupulous and well
planned cleaning and a welcoming setting can add
significantly to the rent you can charge. |
| • |
Don't ever compromise
on safety. Specific legal requirements are placed
on landlords in relation to gas, electrical and
fire safety etc. Always comply so as to provide
a safe and secure environment for your tenants
(and also to avoid criminal penalties). |
| • |
Make sure that the
rent you charge is professionally reviewed on a
regular basis to take account of movements in inflation,
but also to reflect current market conditions,
which can push rentals up, or down. |
| • |
Always remember
that renting out your property quickly can be more
important than a let at the highest price. Small
downward adjustments in rental can be very effective,
and obtaining £450 per month eventually rather
than £420 won't make up for your property
being empty for 3 months. |
| • |
Consider whether
complete re-furnishing and redecoration of your
house or flat would enable you to attract better
quality tenants and minimise any difficulties in
obtaining new ones. Provided the property is in
the right location, high standard decoration and
furniture and some luxurious touches can make a
big difference to prospects. |
| • |
Always ensure that
your property is well looked after. Spend on renewing
items and fittings when necessary so that a small
problem will not become a big one. Tenants notice
when properties are properly cared for so the money
spent will help attract them. |
| • |
Consider carefully
the pros and cons of using an agent to manage your
investment. There is also usually a
requirement to hold professional indemnity insurance
cover together with bonding to protect clients
against monetary loss. |
