What Does An Ideal Buy-to-Let Property Look Like?
As a buy-to-let landlord, choosing the right property is vital to your success. Choose the right buy-to-let property and you can enjoy strong rental income and a stream of tenants. Make the wrong decision and you could be left with extended void periods or even arrears.
With this in mind, what does the ideal buy-to-let property look like? It’s important to remember that every investor has different goals but there are several considerations to take into account that work for every buy-to-let property.
Buy-to-Let Property Tenants
The most important aspect to consider is probably the most obvious: the tenant. Your tenant will not want to live in an area devoid of amenities or transport links. Lifestyle is a big part of a tenant’s choice and location makes all the difference.
Consider who your ideal tenant would be. Looking for families? You’ll want a buy-to-let property investment near schools and away from ‘noisy’ nightlife spots. Young professionals will want good transport links, places to unwind after work and leisure facilities such as gyms or sports centres.
The choice of tenant should also inform the property type you opt for. Families with children will probably not opt for a city-centre apartment, whereas young professionals will jump at the chance for somewhere close to work and nearby amenities.
Many tenants will also garden space so consider if this can help the marketing appeal of your investment. Just remember that gardens can be expensive and not all tenants can be trusted to maintain one property. Keep general golden maintenance as low as possible.
As with any investment, the key to success starts with research. Look at the tenant demographic you want to target, what their needs are and how you can provide for those needs.
Buy-to-Let Property Location
As we touched on earlier, location is vital for a good buy-to-let investment. You’ll want to look at areas that are up-and-coming. Infrastructural developments such as HS2 can make locations more attractive for certain tenants whereas others might be swayed by large public developments that improve shopping opportunities.
Regional cities are generally performing better this year, with affordability remaining excellent when compared to past performing areas. As transport links are developed, these locations are building unprecedented links with each other, offering shorter commutes and better access to popular destinations.
Understanding the location that your investment is in will also help with marketing the property. Once you know your desired demographic and what is around it, it’ll be easier to target your efforts and tailor to your strategy.
Buy-to-Let Property Strategy
Before you decide to invest in a particular property, ensure it fits your strategy and your end-goals.
Generally, buy-to-let should be a long-term investment, allowing you to enjoy a steady stream of regular passive income which will increase as you build up a comprehensive portfolio. If you’re looking at a more mid-term to short-term investment, you may enjoy a period of passive income and the potential for capital growth when you eventually sell.
The ideal buy-to-let property will fit your goals and match your personal circumstances. Market conditions may naturally fluctuate but your ideal property will remain a constant in your portfolio over five or ten years.
Working out potential rental yields can also help you make a more informed decision on your buy-to-let acquisitions. Once you know how much you’re looking for on average, you can tailor your purchase to match. Different areas will have different potential rental yields so this should come under your research phase.
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