Making the choice to invest in property can be quite a daunting prospect, advise flying at you from every direction, not knowing where to start… Sound familiar? Don’t worry, we’re here to fix that! This list of 10 quick tips is not a thourough in depth dive into the property industry. But it is the perfect starting point for any new Landlord. Or even if you’re not new you may well find something useful.
I sat down with our Lettings manager Steve and managing director John to put together this list, between us we have many years of experience in the industry. There is no particular order to this list they are simply written down in the order we came up with them. Enjoy!
1. Location: This may seem obvious but it needs to be said, one of the most important tips we can give you is also one of the simplist, make sure you consider the location of your property! By this, I mean, when you purchase a property, it is essential that you find out about the area BEFORE finalising the purchase. By taking just 1 day to research the location you can protect yourself from a host of potential problems. Some things to look out for when you are researching your area are; crime rates, local amenities, access routes (train stations, bus stops, main roads etc.).
2. Agents: Use a well regarded Letting agent! Okay, now I know this will seem like a marketing ploy, but I assure you this tip is not just to tell you how great HouseShaw is, although, I won’t deny that we are great either… Anyway, the main point is, using an agent can make your start in the property industry much easier and smoother. If you can find a local lettings agency with a good reputation, give them a call and just ask if you can have a chat about the property you are considering Letting , you may well find that they have a lot to say. Obviously at this point I will make sure to mention that if you are looking in Bucks HouseShaw will always be more than happy to help! We have recently introduced an opportunity for landlords to schedule a chat with one of our experts. So a free tip for those in bucks; If you’re unsure, talk to HouseShaw.
3. Demographic: When you’re looking to let out a property, it is always a good idea to figure out which demographic would be most suited to the property. Have a think about which people you think would be most interested in your property, this way you can market it specifically toward those people.
4. Cash Flow or Capital Gain (ROI): Take some time to work out why you are investing. What I mean by this is, when you decide to rent out a property it is normally for one of two reasons; you are looking to earn a bit of extra income each month, this is what you call “cash flow” or you are looking to buy a property which will increase in value and then sell it at the end of your fixed term, this is called “capital gain”. The main difference between the two is one is more focused on short term income and the other is all about long term investment. This should be one of the decisions you make when entering the property industry.
5. Type: Make sure you know which type of let suits your property. Whether you’re buying a property to rent or renting a property that you already own, you need to decide what type of property you want this to be. There are a few types, the most common type is called a single let, this is when you let out a property in it’s entirety to one person (usually) and have a single contract. This sort of let is most common for flats or family houses. The other popular type is a House of Multiple Occupancy (HMO), with this type of property, each bedroom in the house is a seperate entity, meaning each person in the house would sign a contract for a specific room that they are responsible for. I won’t go into all the nitty gritty details of contracts here, the point is, make sure you understand which type of let you want.
6. Marketing: Now I might be slightly biased on this one as my role in HoueShaw is in marketing. Having said that I think most people can agree that marketing is important in every industry. My tip for this is make sure you know what you are selling and who you are selling it too! When it comes to marketing, confidence is key and the best way to be confident in marketing is to be an expert in the field of whatever you are selling. Obviously becoming an expert in the property industry takes years so that’s usually not a very practical option, so what I would suggest is become an expert on your property, so that you know the answer to any question someone asks you in relation to your property.
7. Furnishing: I thought the tip for this one would be, "furnish your property” but after some thought I think I will adjust it to: be open to furnishing your property. I say this because in my experience, furnishing is situational, I would say in 75% of cases a fully furnished property is the better option however there are a fair few exceptions to for example if a prosepctive tenant has their own furniture, it is common for them to want an unfurnished property. One way to stay flexible on this is to invest in some storage so that you can move furniture in and out of a property at your leisure. A general rule of thumb is: If it’s an HMO, furnish it, if it’s a single let be flexible. On the topic of furnishing, a bonus tip, if you will, don’t be lazy, if you decide to furnish your property, do it properly, provide beds, storage and white goods at the very minimum everything extra is another selling point for the property.
8. Amenities: Leading on from the point above, provide the basics (AT LEAST). Provide: Fast internet, central heating, laundry facilities etc. You’d be surprised how many landlords don’t provide or even think to provide basic amenities. But this attention to detail is so important! It shows the tenants that you care and it makes their moving process so much simpler!
9. Bills: Seriously consider all inclusive bill packages. Having bills included in the rent is such a massive selling point to prospective tenants; Tenants do not have to worry about figuring out their own bills and setting up accounts with different providers, when moving in, all they have to do is set up a standing order for rent and pay their deposit. Some Landlords are put off by the idea that this is more expensive, however when done right, it is no more expensive because the price of the bills is averaged and added onto the rent price.
10. lease hold/ free hold: consider the type of tenure you have on your property. There are a few key differences between a free hold and a lease hold. When you have a free hold on a property, you own the property outright and the land it is on. When you have a lease hold, you own the property for a specified amount of time but not the land it is on. Leasehold is most common in flats because it allows different landlords to own flats in the same building. If you have a leasehold, you will have some extra costs, so be sure to look into that before finalising anything.
I hope you found these tips helpful, for a more in depth delve into the property industry HouseShaw will soon be offering opportunities to sit down with our Lettings manager and Managing Director to discuss all things property! So if that sounds interesting to you keep an eye out over the next few weeks. So my final bonus tip for this bog is: Talk to HouseShaw.
