If you are thinking about investing in a rental property, there are a few things that you should consider to make sure you get the best return on your investment. These things are not set in stone but from our experience, if you consider these factors, you should be able to find the perfect investment property that makes you money year after year.
Choosing the right neighbourhood for your investment property is essential. By choosing the right area, you can charge a higher rental for your property. It may cost more to buy in a nicer area but you could see bigger returns also. Consider up and coming areas also for some massive returns. Look at areas that are undergoing regeneration, as you may pick up a bargain that will see a big increase in value over a short period of time.
Finding a property near a good school can be a great way to make money on your investment. People will actually move to an area just to get into a school catchment area. If you are buying an investment property, do your homework as finding a property in the catchment area of a good school, will increase the rent that you can charge and ultimately the value of your property.
Crime in the area is a major factor when buying a rental property; after all, your tenants want to feel safe. Also the nicer the area, the more rent you can charge, the easier it is to let the property, and when the time comes, the easier it is to sell the property. Make sure you checkout the national crime statistics for the area that you are thinking of buying in. Buying a house in a low crime area will also save you money on insurance premiums which may take these statistics into consideration when selling you a policy.
Employment opportunities and closeness to areas of work should also be considered when buying property to rent. For example, buying a rental property near a hospital, you may be able to rent to doctors and nurses, or near a college or university, you may be able to rent to students. Also make sure that your rental property is close to major working areas like city centres or in commuter zones with good transport links to attract high rent paying tenants and to increase the value of your property investment in the long term.
A rental property with good transport links is sure to rent out to professionals and commuters. Check out what routes are available to your rental property to target potential tenants and to use in your marketing when trying to let or sell your property. A property on good transport routes could dramatically increase your chances of finding a tenant and may also increase the amount of rent you can charge.
What is going on in the local area? Having good local amenities such as bars, restaurants and shops can be a real attraction to potential tenants. By buying an investment property in a vibrant area will cost a premium, but you can recoup these costs through increased rent. Do your research into up and coming areas and areas with planned development. If you buy at the right time in an area that is on the up, you could make a tidy profit.