Knowing where to start when it comes to creating a profitable rental property can be difficult. There are so many things to consider, but here we’ve narrowed it down to three main components that you should focus on. So, before you invest in a property, take into account these areas of concern and your profits should increase dramatically!
Consider The Location
Something that can either massively increase or decrease the profitability of a rental property is the location. In order to get this right, consider your target market. If you have a substantial amount of money to spend, try targeting families by investing in a property in an affluent suburb which is close to fantastic schools, local amenities and countryside walks.
Or, why not target young professionals and invest in a one or two bedroom flat in Manchester or Leeds, choosing a location close to restaurants, bars and public transport. The number one thing when it comes to investing is to make your property irresistible to potential renters. A sure fire way to do that is by choosing the perfect location for your audience.
Maximise Value For Money With Property Auctions
Firstly, if you are able to get a good deal when initially purchasing the property, you will be able to invest more money in renovations and therefore increase it’s potential to make substantial profits. One of the best ways to do this is through property auctions, as you can get fantastic value for money.
Find an auction website that offers properties in the area you want to invest in by searching something like “Auction House North West”. From here, you can then arrange viewings, find a property you think could be profitable and go into the auction with a specific figure in mind to ensure you don’t overspend. Whilst there is the risk of losing the property, more often than not you will be able to get a great deal.
Keep The Interior Simple
There is nothing more off putting to renters than viewing a property with a bright red living area, a purple bedroom, strange coloured carpets or garish kitchen cupboards. The key to drawing in potential tenants is offering a bright and simple space that is cohesive, as you usually wouldn’t allow them to change anything inside the property. Try to keep the flooring consistent throughout most of the property, choose a simple and neutral colour palette and opt for sleek looking appliances.
People looking to rent want to have the freedom to make the house or flat feel like home, so keeping things simple will enable them to do that. Inserting nails into large, plain walls could be enticing for renters as they can invest in some art work to suit their style and not worry about causing any damage.
When it comes to making your rental property profitable, it really couldn’t be more simple. Choose a good location, go to residential property auctions and opt for a simple, classy interior that renters can make their own. Once you have done these things, you’ll see a spike in demand for your property and your profits!