Before investing there are numerous things you need to research including – but not limited to – cash amounts, mortgages and rates, fixed costs (such as service charges in flats), potential repairs and improvements, furnishings, gross and net yields, plus likely returns on capital employed.
Investing in a university town is good, especially close to the university itself. Always make sure that the property has sufficient bathroom and kitchen facilities to match the number of likely occupants.
2 Bedroom properties seem to be the most popular, either houses or apartments, larger bedrooms are better than singles, good nearby transport links are also useful and double-glazing is becoming a requirement for most tenants.
Location of the property is vitally important, The main drivers are access to train stations, good shops and restaurants local schooling can also be a factor.
The condition of property should also be considered. Tenants want dry, structurally sound properties in good condition (cracked fittings, marked walls, damaged appliances, grubby kitchens and bathrooms are all a turn off).
Think carefully about the size and layout of the accommodation too. Most tenants will dislike small living spaces & odd shaped rooms.
Also remember, tenants have a strong sense of rental values so the days of landlords setting the rent to cover their mortgage are gone and they must therefore buy wisely.
A BTL property should look good from the outside (kerb appeal). If the inside is immaculate but the outside isn’t, you will struggle to get people through the door.
Think about the age of the property. The younger the property, the less maintenance you will have. If you purchase a character property, I would strongly suggest that BTL landlords have the gas and electric checks done on the property before Exchange of Contracts. If problems are found the cost of rectifying the issues could potentially come off the agreed sale price.
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