Don’t choose a property simply because it’s right for you.
Probably the most common error made by a landlord is the contemplation of a purchase because “It’s a nice area” or because “I would like to live there”. Or possibly, a purchase is dismissed because “I wouldn’t want to live there” or because “It’s a horrible area”.
Generally, where a property is located in relation to where you would personally choose to live is entirely irrelevant. Unless your intention is to live in it yourself at a later date, you aren’t buying it for yourself. In truth, whilst there might be very small notable exceptions, there is demand for the right property, presented in the right manner and correctly priced almost anywhere.
You might not wish to live there for any number of reasons, but for someone, it’s handy for work, for a school or for their mother who lives nearby. Whilst it might be too down-market for you, for somebody it’s a step up, or it’s exactly what they are used to. For some investors, the prospect of choosing a property that for whatever reason they would not wish to live in will take some getting used to.
Unless you adjust your thinking in this regard, you will probably pay more than you need for a property.
Many almost identical properties are available in different locations with prices varying accordingly and yet ironically, the rental expectation for a more expensive area may not make up for the additional purchase costs.
By all means speak with estate agents, but bear in mind that they sell houses and, in truth, a lettings specialist will have a better understanding of the demands and needs of tenants and many other issues surrounding lettings.
Once you have spotted something you think might be appropriate, contact a letting agent. At Belvoir, we are more than happy for you to send a website link to us for an opinion. We are also happy to visit a property with you or on your behalf, in order to appraise it. In the past, we have even made offers on properties on behalf of overseas landlords.
Seek the advice of a letting agent.
- Does work need to be carried out to bring it up to standard?
- At what cost?
- What is a conservative rental income?
- What yield is it likely to achieve?
- Do they manage similar properties in the same street or around the corner?
- What sort of tenant will it attract?
